Document:

Exhibit 10.8

 

	Standard Form of OFFICE LEASE
	©2004 PORTLAND METROPOLITAN ASSOCIATION OF BUILDING OWNERS AND MANAGERS

 

	1.1	Basic
Lease Terms.

 

	A.	REFERENCE DATE OF LEASE	November 24,2010
	 	 	 
	B.	TENANT:	

	Trade Name:	 	Deco Distilling	 
	Address (Leased Premises):	1512 SE 7th
    Avenue
	 	Portland, OR 97214

 

	Address (For Notices):	 	 
	 	 	 
	 	 	 

 

	C.	LANDLORD:	Oregon City Building
    Limited Partnership
	Address (For Notices):	3662 SW Tun nelwood Street
	 	Portland, OR 97221

 

	 	 	 

 

	D.	PREMISES: 1512 SE
    7th Avenue at the 712 SE Hawthorne Building (the “Building”) in Portland, Oregon.
	 	 
	E.	PREMISES AREA: Approximately 1,300 Rentable Square Feet (See Exhibit “A”)
	 	 
	F.	BUILDING AREA: Approximately 11,480 Rentable Square Feet

 

G. TENANT'S
PROPORTIONATE SHARE: N.A. The percentage is obtained by dividing the rentable square feet of the Premises by the total number
of rentable square feet of the Building, Landlord may modify Tenant's Proportionate Share if the Building size is increased or
decreased, as the case may be,

 

H. TENANTS
PERMITTED USE OF PREMISES: Distillery; mixing and preparation of separately procured products into alcoholic beverages, as
well as taste samplings and retail sale of products.

 

	I.	 TERM OF LEASE:	Commencement Date:	December 1,2010
	 	 	 	 
	 	 	Expiration Date:	November 30,2014
	 	 	 	 
	 	 	Number of Full Calendar Months:	48

 

J. INITIAL BASE MONTHLY
RENT:           $1,300.00 per month, modified gross. Tenant is
responsible for their own interior janitorial, telephone and internet expenses.

 

Rent is abated for the first two months
of this lease ($0,00 rent due for first two months.)

 

Tenant reserves the right to give early termination notice to
Landlord for a termination fee of 90 days rent (at the then current rental rate) plus reimburse unamortized real estate commission
payable to Landlord with early termination notice, should the Tenant need to increase their business space requirement.

 

K. BASE RENT ADJUSTMENT: The following is based
on commencement date of December 1,2010. Commencement of this Lease is subject to Federal regulatory approval of this business
moving to this new location. If federal approval date is after December 1,2010 then all dates shown below will be adjusted to
the actual date of the commencement. Said commencement date to be on the first of the month as will all rent increase anniversary
dates thereafter.

 

 

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		Landlord	 	Tenant

 

    	 

    	 

    

  

	Year 2; December 1, 2011	 	$	1,332	 
	Year 3: December 1, 2012	 	$	1,366	 
	Year 4: December 1, 2013	 	$	1,400	 

 

L. BASE YEAR: REAL PROPERTY
TAXES 2010-2011. EXPENSES 2011.

 

M. PARKING: N.A. Spaces
[Insert “NA” if not applicable]

 

N. PREPAID RENT: Upon execution of this Lease,
Tenant shall deposit with Landlord as first month’s rent the amount of $1,300.00.

 

O.SECURITY DEPOSIT: Upon execution of this
Lease, Tenant shall deposit with Landlord $500.00 (the “Security Deposit").

 

P. BROKER(S): Randy Hoaglin, C&R Real Estate
Services Co. representing Landlord and Tim Budelman of Prudential Northwest Properties representing the Tenant.

 

Q. GUARANTORS): William A. Adams and Lenny Gotter.
Personal Guaranty will expire two years from the commencement date

If Guarantor(s) is/are listed, Tenant shall cause all
Guavantor(s) to return to Landlord an executed Guaranty of this Lease in the form attached as Exhibit D at the same time as Lease
execution,

 

For valuable consideration, Landlord
and Tenant covenant and agree as follows:

 

	1.2   	Lease
of Premises.

 

Landlord leases to Tenant the premises described in
the Basic Lease Terms and shown on Exhibit A (the “Premises”), located in the Building, subject to the terms and conditions
of this Lease.

 

	1.3   	Delivery of Possession and Commencement.

 

Should Landlord be unable
to deliver possession of the Premises on the commencement date stated in the Basic Lease Terms, the commencement date will be
deferred and Tenant shall owe no rent until notice from Landlord tendering possession to Tenant. If possession is not so
tendered within ninety (90) sixty (60) days following the commencement date set forth in the Basic Lease
Terms, then Tenant may elect to terminate this Lease by notice to Landlord within ten (10) days following expiration of the ninety
(90) sixty (60) day-period. Landlord shall have no liability to Tenant for delay in delivering possession, The
expiration date of this Lease shall be the date stated in the Basic Lease Terms or, if later, the last day of the calendar
month that is the number of full calendar months stated in the Basic Lease Terms from the month in which the commencement
date occurs. The Premises shall be improved in accordance with Exhibit B. The existence of any “punchlist”-type
items shall not postpone the commencement date of this Lease. Tenant’s occupancy of the Premises shall constitute
conclusive acceptance of the amount of square footage stated herein, and of the condition of the Premises.

 

 

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	Standard Form of OFFICE LEASE 	 	 	 
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		Landlord	 	Tenant

   

    	 

    	 

    

 

	2.1   	Rent Payment

 

Tenant shall pay to Landlord
the Base Rent for the Premises and any additional rent provided herein, without deduction or offset. At the same time as execution
of the Lease, Tenant shall pay the Base Rent for the first full month of the Lease term for which rent is payable. Rent is payable
in advance on the first day of each month commencing on the commencement date of this Lease. Rent for any partial month during
the Lease term shall be prorated to reflect the number of days during the month that Tenant occupies the Premises. Additional rent
means amounts determined under Section 19 of this Lease and any other sums payable by Tenant to Landlord under this Lease. Rent
not paid when due shall bear interest at the rate of 1 1/2 percent per month, or if less the maximum applicable rate of interest
permitted by law, until paid. Landlord may at its option impose a late charge of the greater of $.05 for each $1 of rent or $50
for rent payments made more than ten (10) days late in lieu of interest for the first month of delinquency. Tenant acknowledges
that late payment by Tenant to Landlord of any rent or other sums due under this Lease will cause Landlord to incur costs not contemplated
by this Lease, the exact amount of such costs being extremely difficult and impracticable to ascertain, and that such late charge
represents a fair and reasonable estimate of the costs that Landlord will incur by reason of any such late payment and is not a
penalty, Neither imposition nor collection nor failure to impose or collect such late charge shall be considered a waiver of any
other remedies available for default. In addition to such late charge, an additional charge of $75 shall be recoverable by Landlord
for any returned checks.

 

	2.2   	Prepaid Rent.

 

Upon the execution of this Lease,
Tenant shall pay to Landlord the prepaid rent set forth in the Basic Lease Terms. Landlord’s obligations with respect to
the prepaid rent are those of a debtor and not of a trustee, and Landlord can commingle the prepaid rent with Landlord’s
general funds. Landlord shall not be required to pay Tenant interest on the prepaid rent. Landlord shall be entitled to immediately
endorse and cash Tenant’s prepaid rent; however, such endorsement and cashing shall not constitute Landlord’s acceptance
of this Lease. In the event Landlord does not accept this Lease, Landlord shall promptly return said prepaid rent to Tenant

 

	3.1   	Security Deposit.

 

At the same time as execution
of the Lease by Tenant, Tenant shall pay to Landlord the amount stated in the Basic Lease Terms as a Security Deposit. Landlord
may apply the Security Deposit to pay the cost of performing any obligation which Tenant fails to perform within the time required
by this Lease, but such application by Landlord shall not waive Landlord's other remedies nor be the exclusive remedy for Tenant’s
default. If the Security Deposit is applied by Landlord, Tenant shall on demand pay the sum necessary to replenish the Security
Deposit to its original amount. In no event will Tenant have the right to apply any part of the Security Deposit to any rent or
other sums due under this Lease. If Tenant is not in default at the expiration or termination of this Lease, Landlord shall return
the entire Security Deposit to Tenant, except for the portion designated in the Basic Lease Terms, if any, which Landlord shall
retain as a non-refundable cleaning fee. Landlord’s obligations with respect to the Security Deposit are those of a debtor
and not of a trustee, and Landlord can commingle the Security Deposit with Landlord's general funds. Landlord shall not be required
to pay Tenant interest on the Security Deposit. Landlord shall be entitled to immediately endorse and cash Tenant's Security Deposit;
however, such endorsement and cashing shall not constitute Landlord's acceptance of this Lease. In the event Landlord does not
accept this Lease, Landlord shall return said Security Deposit. If Landlord sells its interest in the Premises during the term
hereof and deposits with or credits to the purchaser the unapplied portion of the Security Deposit, thereupon Landlord shall be
discharged from any further liability or responsibility with respect to the Security Deposit.

 

	4.1   	Use.

 

Tenant shall use the Premises
as a business for the Tenant's Permitted Use stated in the Basic Lease Terms and for no other purpose without Landlord’s written
consent. In connection with its use, Tenant shall at its expense promptly comply and cause the Premises to comply with all applicable
laws, ordinances, rules, and regulations of any public authority (“Laws”) and shall not annoy, obstruct, or interfere
with the rights of other tenants of the Building. Tenant shall create no nuisance nor allow any objectionable fumes, noise, light,
vibration, radiation, or electromagnetic waves to be emitted from the Premises. If any sound or vibration produced by Tenant's
activities is detectable outside of the Premises, Tenant shall provide such insulation as is required to muffle such sound or vibration
and render it undetectable at Tenant's cost. Tenant shall not conduct any activities that will increase Landlord’s insurance
rates for any portion of the Building or that will in any manner degrade or damage the reputation of the Building. Tenant shall
pay before delinquency all taxes, assessments, license fees and public charges levied, assessed or imposed upon its business operations
as well as upon all trade fixtures, leasehold improvements, merchandise and other personal property in or about the Premises.

 

 

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	Standard Form of OFFICE LEASE 	 	 	 
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		Landlord	 	Tenant

  

    	 

    	 

    

  

	4.2   	Equipment.

 

Tenant shall install in the Premises
only such equipment as is customary for Tenant's Permitted Use and shall not overload the floors or electrical circuits of the
Premises or Building or alter the plumbing or wiring of the Premises or Building. Landlord must approve in advance the location
of and manner of installing any wiring or electrical, heat generating, climate sensitive, or communication equipment or exceptionally
heavy articles. All telecommunications equipment, conduit, cables and wiring, additional dedicated circuits, and any additional
air conditioning required because of heat generating equipment or special lighting installed by Tenant shall be installed and operated
at Tenant’s expense and, at Landlord’s written request shall be removed by Tenant at Tenant’s sole cost and expense.
Landlord shall have no obligation to permit the installation of equipment by any telecommunications provider whose equipment is
not then servicing the Building. Tenant shall have no right to install any equipment on or through the roof of the Building, or
use or install or store any equipment or other items outside of the interior boundary of the Premises.

 

	4.3   	Signs and Other Installations.

 

No signs, awnings, or other apparatus shall be painted
on or attached to the Building or anything placed on any glass or woodwork of the Premises or positioned so as to be visible from
outside the Premises, including any window covering (e.g., shades, blinds, curtains, drapes, screens, or tinting materials)
without Landlord’s written consent, and Landlord's approval as to design, size, location, and color, All signs installed
by Tenant shall comply with Landlord’s standards for signs and all applicable codes and all signs and sign hardware shall
be removed upon termination of this Lease with the sign location restored to its former state unless Landlord elects to retain
all or any portion thereof. Tenant may not install any alarm boxes, foil protection tape, or other security equipment on the Premises
without Landlord's prior written consent. Any material violating this provision may be removed and disposed by Landlord without
compensation to Tenant, and Tenant shall reimburse Landlord for the cost of the same upon request. Tenant responsible for any
and all signs installed on the outside of the building subject to Landlord approval, and also if necessary, governmental approval.
In addition, if Tenant wishes to use an A- board style sign on the sidewalk, they will comply with the City of Portland permit
process and regulations, as well as being responsible for any and all permit fees.

 

If a number of parking spaces
is designated in the Basic Lease Terms, then during the term of this Lease, Landlord shall make available to Tenant’s employees
such number of parking space(s) at the parking lot servicing the Building. Landlord's obligation pursuant to this Section shall
be limited to making such spaces available in whatever manner Landlord deems appropriate (attended, unattended, marked stalls,
or other means), as long as the number of spaces referred to are made available to Tenant. Tenant shall be required to pay as rental
for the spaces made available to, and used by, Tenant the established parking rates for the Building or lot (as the case may be),
as adjusted from time to time, and such sum shall be additional rent payable under this Lease.

 

	5.1   	Utilities and Services.

 

Landlord will furnish water
and electricity to the Building at all times and will furnish heat and air conditioning (if the Building is air conditioned),
at building standard levels, during the normal Building hours as established by Landlord. Janitorial service will be
provided in accordance with the regular schedule of the Building, which schedule and service may change from time to
time. Tenant shall comply with all government laws or regulations regarding the use or reduction of use of utilities
on the Premises. Interruption of services or utilities shall not be deemed an eviction or disturbance of Tenant’s use
and possession of the Premises, render Landlord liable to Tenant for damages, or relieve Tenant from performance of
Tenant’s obligations under this Lease. Landlord shall take all reasonable steps to correct any interruptions in service
caused by defects in utility systems within Landlord's reasonable control. Electrical service furnished will be 110 volts
unless different service already exists in the Premises. Tenant shall provide its own surge protection for power furnished to
the Premises. Landlord shall have the exclusive right to choose the utility service providers to the Premises and may change
providers at its discretion. Tenant shall cooperate with Landlord and the utility service providers at all times as
reasonably necessary, and shall allow Landlord and utility service providers, reasonable access to the pipes, lines, feeders,
risers, wiring, and any other machinery within the Premises. Tenant shall not contract or en gage any other utility provider
without prior written approval of Landlord, which approval Landlord may withhold or condition in Landlord’s discretion. Tenant
responsible for own telephone and internet installation and service charges, as well as interior janitorial.

 

 

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	Standard Form of OFFICE LEASE 	 	 	 
	Page 4		 	
		Landlord	 	Tenant

 

    	 

    	 

    

 

 

	5.2   	Extra Usage.

 

If Tenant uses excessive amounts
of utilities or services of any kind because of operation outside of normal Building hours, high demands from office machinery
and equipment, nonstandard lighting, or any other cause, Landlord may impose a reasonable charge for supplying such extra utilities
or services, which charge shall be payable monthly by Tenant in conjunction with rent payments. In case of dispute over any extra
charge under this Section, Landlord shall designate a qualified independent engineer whose decision shall be conclusive on both
parties. Landlord and Tenant shall each pay one-half of the cost of such determination. Landlord reserves the right to install
separate meters for any such utility and to charge Tenant for the cost of such installation.

 

	5.3   	Security.

 

Landlord may but shall have no
obligation to provide security service or to adopt security measures regarding the Premises, and Tenant shall cooperate with
all reasonable security measures adopted by Landlord. Tenant may install a security system within the Premises with Landlord’s
written consent which will not be unreasonably withheld, Landlord will be provided with an access code to any security system and
shall not have any liability for accidentally setting off Tenant’s security system. Landlord may modify the type or amount
of security measures or services provided to the Building or the Premises at any time without notice.

 

	6.1   	Maintenance and Repair.

 

		6.1.1	Landlord shall maintain and repair in good condition the Building structure, roof, exterior walls
and doors, exterior windows, and common areas of the Building, and the electrical, mechanical, plumbing, heating and air conditioning
systems, facilities and components located in the Building that are used in common by all tenants of the Building (including replacing
building standard light bulbs). Tenant shall maintain and repair the Premises in good condition, including, without limitation,
maintaining and repairing all walls, floors, and ceilings, all interior doors, partitions, and windows, and all Premises systems,
fixtures, and equipment that are not the maintenance responsibility of Landlord, as well as damage caused by Tenant, its agents,
employees, contractors, or invitees, including replacing building standard light bulbs.

 

		6.1.2	Landlord shall have no liability for failure to perform required maintenance and repair
                                                                                                     unless written notice of such maintenance or repair is given by Tenant and Landlord fails to commence efforts to remedy the
                                                                                                     problem in a reasonable time and manner. Landlord shall have the right to erect scaffolding and other apparatus necessary for
                                                                                                     the purpose of making repairs or alterations to the Building, and Landlord shall have no liability for interference with
                                                                                                     Tenant’s use because of such work. Work may be done during normal business hours. Tenant shall  have no claim against
                                                                                                     Landlord for any interruption or reduction of services or interference with Tenant’s occupancy caused by Landlord's
                                                                                                     maintenance and repair, and no such interruption or reduction shall be construed as a constructive or other eviction of
                                                                                                     Tenant.

 

		6.1.3	Landlord's cost of repair and maintenance shall be considered “operating expenses” for purposes of Section 19.3,
except that repair of damage caused by negligent or intentional acts or breach of this Lease by Tenant, its contractors, agents,
or invitees shall be at Tenant’s expense.

 

	6.2   	Alterations.

 

		6.2.1	Tenant shall not make any alterations, additions, or improvements to the Premises, change the color
of the interior, or install any wall or floor covering without Landlord’s prior written consent which may be withheld in
Landlord’s sole discretion. Should Landlord consent in writing to Tenant's alteration of the Premises, Tenant shall contract
with a contractor approved by Landlord for the construction of such alterations, shall secure all appropriate governmental approvals
and permits, and shall complete such alterations with due diligence in compliance with the plans and specifications approved by
Landlord. All such construction shall be performed in a manner which will not interfere with the quiet enjoyment of other tenants
of the Building. Any such improvements, alterations, wiring, cables, or conduit installed by Tenant shall at once become part of
the Premises and belong to Landlord except for removable machinery and unattached movable trade fixtures. Landlord may at its option
require that Tenant remove any improvements, alterations, wiring, cables or conduit installed by or for Tenant and restore the
Premises to the original condition upon termination of this Lease. Landlord shall have the right to approve the contractor used
by Tenant for any work in the Premises, and to post notices of nonresponsibility in connection with work being performed by Tenant
in the Premises, Work by Tenant shall comply with all laws then applicable to the Premises, Tenant shall not allow any liens to
attach to the Building or Tenant’s interest in the Premises as a result of its activities or any alterations.

 

 

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	Standard Form of OFFICE LEASE 	 	 	 
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		Landlord	 	Tenant

 

    	 

    	 

    

  

		6.2.2	Landlord may perform alterations to or change the configuration of the Building, the Building, the parking area, and other
common areas.

 

		7.1	Landlord may perform alterations to or change the configuration of the Building, the Building, the parking area, and other
common areas.

 

	7.2   	Indemnity.

 

Tenant shall indemnify, defend,
and hold harmless Landlord and its managing agents and employees from any claim, liability, damage, or loss occurring in, on, or
about the Premises, or any cost or expense in connection therewith (including attorney fees), arising out of (a) any damage to
any person or property occurring in, on, or about the Premises, (b) use by Tenant or its agents, invitees or contractors of the
Premises and/or the Building, and/or (c) Tenant's breach or violation of any term of this Lease.

 

	7.2   	Insurance.

 

Tenant shall carry liability
insurance with limits of not less than Two Million Dollars ($2,000,000) combined single limit bodily injury and property damage
which insurance shall have an endorsement naming Landlord and Landlord’s managing agent, if any, as an additional insured,
cover the liability insured under Section 7.1 of this Lease and be in form and with companies reasonably acceptable to Landlord.
Prior to occupancy, Tenant shall furnish a certificate evidencing such insurance which shall state that the coverage shall not
be canceled or materially changed without thirty (30) days’ advance notice to Landlord and Landlord’s managing agent,
if any. Tenant shall furnish to Landlord a renewal certificate at least thirty (30) days prior to expiration of any policy. If
additional insurance is required by Tenant in order to do “taste-testing, they will agree to acquire additional insurance
if needed, at their cost.

 

	8.1   	Fire or Casualty.

 

“Major Damage” means
damage by fire or other casualty to the Building or the Premises which causes the Premises or any substantial portion of the Building
to be unusable, or which will cost more than 25 percent of the pre-damage value of the Building to repair, or which is not covered
by insurance. In case of Major Damage, Landlord may elect to terminate this Lease by notice in writing to the Tenant within thirty
(30) days after such date. If this Lease is not terminated following Major Damage, or if damage occurs which is not Major Damage,
Landlord shall promptly restore the Premises to the condition existing just prior to the damage. Tenant shall promptly restore
all damage to tenant improvements or alterations installed or paid for by Tenant or pay the cost of such, restoration to Landlord
if Landlord elects to do the restoration of such improvements. Unless the casualty was caused by Tenant, rent shall be reduced
from the date of damage until the date restoration work being performed by Landlord is substantially complete, with the reduction
to be in proportion to the area of the Premises not usable by Tenant.

 

	8.2   	Waiver of Subrogation.

 

Tenant shall be responsible for
insuring its personal property and trade fixtures located on the Premises and any alterations or tenant improvements it has made
to the Premises. Neither Landlord, its managing agent nor Tenant shall be liable to the other for any loss or damage caused by
water damage, sprinkler leakage, or any of the risks that are covered by property insurance or could be covered by a customary
broad form of property  insurance policy, or for any business interruption, and there shall be no subrogated claim by one party’s
insurance carrier against the other party arising out of any such loss.

 

 

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	Standard Form of OFFICE LEASE 	 	 	 
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		Landlord	 	Tenant

  

    	 

    	 

    

  

	9.1     	Eminent Domain.

 

If a condemning authority takes
title by eminent domain or by agreement in lieu thereof to the entire Building or a portion sufficient to render the Premises unsuitable
for Tenant’s use, then either party may elect to terminate this Lease effective on the date that possession is taken by the
condemning authority. If this Lease is not terminated, then rent shall be reduced for the remainder of the term in an amount proportionate
to the reduction in area of the Premises caused by the taking. All condemnation proceeds shall belong to Landlord, and Tenant shall
have no claim against Landlord or the condemnation award because of the taking.

 

	10.1   	Assignment and Subletting.

 

Tenant shall not assign or encumber
its interest under this Lease or sublet all or any portion of the Premises without first obtaining Landlord’s consent in
writing. This provision shall apply to all transfers by operation of law, and to all mergers and changes in control of Tenant,
all of which shall be deemed assignments for the purposes of this Section. No assignment shall relieve Tenant of its obligation
to pay rent or perform other obligations required by this Lease, and no consent to one assignment or subletting shall be a consent
to any further assignment or subletting. If Tenant proposes a subletting or assignment for which Landlord’s consent is required,Landlord
shall have the option of terminating this Lease and dealing directly with the proposed subtenant or assignee, or any third party.
If Landlord does not terminate this Lease, Landlord shall not unreasonably withhold its consent to any assignment or subletting
provided the effective rental paid by the subtenant or assignee is not less than the current scheduled rental rate of the Building
for comparable space and the proposed Tenant is compatible with Landlord’s normal standards for the Building. If an assignment
or subletting is permitted, any cash net profit, or the net value of any other consideration received by Tenant as a result of
such transaction shall be paid to Landlord promptly following its receipt by Tenant. Tenant shall pay any costs incurred by Landlord
in connection with a request for assignment or subletting, including reasonable attorney fees.

 

	11.1	Default.

 

Any of the following shall constitute
an Event of Default by Tenant under this Lease (time of performance being of the essence of this Lease):

 

		11.1.1	Tenant’sfailure to pay rent or any other charge
under this Lease within ten (10) days after it is due.

 

		11.1.2	Tenant'sfailure to comply with any other term or
condition within twenty (20) days following written notice from Landlord specifying the noncompliance.
If such noncompliance cannot be cured within the twenty (20)-day period, this provision shall be satisfied if Tenant commences
correction within such period and thereafter proceeds in good faith and with reasonable diligence to complete collection as soon
as possible but not later than ninety (90) days after the date of Landlord's notice.

 

		11.1.3	Failure of Tenant to execute the documents described in Section 16.1 or 16.3 within the time required
under such Sections; failure of Tenant to provide or maintain the insurance required of Tenant pursuant hereto; or failure of Tenant
to comply with any Laws as required pursuant hereto within twenty-four (24) hours after written demand by Landlord.

 

		11.1.4	Tenant’s insolvency, business failure, or assignment for the benefit of its creditors. Tenant’s
commencement of proceedings under any provision of any bankruptcy or insolvency law or failure to obtain dismissal of any petition
filed against it under such laws within the time required to answer; or the appointment of a receiver for all or any portion of
Tenant’s properties or financial records.

 

		11.1.5	Assignment or subletting by Tenant in violation of Section 10.1.

 

		11.1.6	Vacation or abandonment of the Premises without the written consent of Landlord or failure to occupy
the Premises within twenty (20) days after notice from Landlord tendering possession.

 

 

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	Standard Form of OFFICE LEASE	 	 	 
	Page 7		 	
		Landlord	 	Tenant

  

    	 

    	 

    

  

	11.2   	Remedies for Default.

 

Upon occurrence of an Event of
Default as described in Section 11,1, Landlord shall have the right to the following remedies, which are intended to be cumulative
and in addition to any other remedies provided under applicable law or under this Lease:

 

		11.2.1	Landlord may at its option terminate this Lease, without prejudice to its right to damages for
Tenant’s breach. With or without termination, Landlord may retake possession of the Premises and may use or relet the Premises
without accepting a surrender or waiving the right to damages, Following such retaking of possession, efforts by Landlord to relet
the Premises shall be sufficient if Landlord follows its usual procedures for finding tenants for the space at rates not less than
the current rates for other comparable space in the Building. If Landlord has other vacant space in the Building, prospective tenants
may be placed in such other space without prejudice to Landlord’s claim to damages or loss of rentals from Tenant,

 

		11.2.2	Landlord may recover all damages caused by Tenant’s default which shall include an amount
equal to rentals lost because of the default, Lease commissions paid for this Lease, and the unamortized cost of any tenant improvements
installed by or paid for by Landlord. Landlord may sue periodically to recover damages as they occur throughout the Lease term,
and no action for accrued damages shall bar a later action for damages subsequently accruing. Landlord may elect in any one action
to recover accrued damages plus damages attributable to the remaining term of the Lease. Such damages shall be measured by the
difference between the rent under this Lease and the reasonable rental value of the Premises for the remainder of the term, discounted
to the time of judgment at the prevailing interest rate on judgments.

 

	11.3   	Landlord’s Right To Cure Default.

 

Landlord may, but shall not be
obligated to, make any payment or perform any obligation which Tenant has failed to perform when required under this Lease. All
of Landlord's expenditures incurred to correct the failure to perform shall be reimbursed by Tenant upon demand with interest
from the date of expenditure at the rate of 1 1/2 percent per month. Landlord's right to correct Tenant's failure to perform is
for the sole protection of Landlord and the existence of this right shall not release Tenant from the obligation to perform all
of the covenants herein required to be performed by Tenant, or deprive Landlord of any other right which Landlord may have by reason
of default of this Lease by Tenant, whether or not Landlord exercises its right under this Section.

 

	12.1   	Surrender; Holdover.

 

On expiration or early termination
of this Lease, Tenant shall deliver all keys to Landlord and surrender the Premises vacuumed, swept, and free of debris and in
the same condition as at the commencement of the term subject only to reasonable wear from ordinary use, Tenant shall remove all
of its furnishings and trade fixtures that remain its property and any alterations, cables, or conduits if required by Section
6.2, and shall repair all damage resulting from such removal. Failure to remove shall be an abandonment of the property, and, following
ten (10) days’ written notice, Landlord may remove or dispose of it in any manner without liability, and recover the cost
of removal and other damages from Tenant. If Tenant fails to vacate the Premises when required, including failure to remove all
its personal property, Landlord may elect either: (i) to treat Tenant as a tenant from month to month, subject to the provisions
of this Lease except that rent shall be one-and-one-half times the total rent being charged when the Lease term expired, and any
option or other rights regarding extension of the term or expansion of the Premises shall no longer apply; or (ii) to eject Tenant
from the Premises (using self-help or otherwise) and recover damages caused by wrongful holdover.

 

	13.1   	Regulations.

 

Landlord shall have the right
but shall not be obligated to make, revise and enforce rules and regulations or policies consistent with this Lease for the purpose
of promoting safety, health, order, economy, cleanliness, and good service to all tenants of the Building, including, but not limited
to, moving, use of common areas, and prohibition of smoking. All such regulations and policies including those, if any, attached
to this Lease, shall be complied with as if part of this Lease and failure to comply shall be a default.

 

 

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	14.1   	Access.

 

During times other than normal
Building hours, Tenant’s officers and employees or those having business with Tenant may be required to identify themselves
or show passes in order to gain access to the Building. Landlord shall have no liability for permitting or refusing to permit access
by anyone. Landlord may regulate access to any Building elevators outside of normal Building hours. Landlord shall have the right
to enter upon the Premises at any time by passkey or otherwise to determine Tenant’s compliance with this Lease, to perform
necessary services, maintenance and repairs or alterations to the Building or the Premises, to post notices of nonresponsibility,
or to show the Premises to any prospective tenant or purchasers. Except in case of emergency, such entry shall be at such times
and in such manner as to minimize interference with the reasonable business use of the Premises by Tenant.

 

	14.2   	Furniture and Bulky Articles.

 

Tenant shall move furniture and bulky articles in
and out of the Building or make independent use of any elevators only at times approved by Landlord following at least 24 hours’
written notice to Landlord of the intended move.

 

	15.1   	Notices.

 

Notices between the parties relating
to this Lease shall be in writing, effective when delivered during business hours by facsimile transmission, hand delivery, private
courier, or first-class or certified U.S. mail. Notices shall be delivered postage prepaid, to the address or facsimile number
for the party stated in the Basic Lease Terms or to such other address as either party may specify by notice to the other. Notice
to Tenant may always be delivered to the Premises. Rent shall be payable to Landlord at the same address and in the same manner,
but shall be considered paid only when received.

 

	16.1   	Subordination and Attornment.

 

This Lease shall be subject to
and subordinate to any mortgages, deeds of trust, ground lease, master lease, or land sale contracts (hereafter collectively referred
to as encumbrances) now existing against the Building. At Landlord’s option this Lease shall be subject and subordinate to
any future encumbrance, ground lease, or master lease hereafter placed against the Building (including the underlying land) or
any modifications of existing encumbrances, and Tenant shall execute such documents as may reasonably be requested by Landlord
or the holder of the encumbrance to evidence this subordination. If any encumbrance is foreclosed, then if the purchaser at foreclosure
sale gives to Tenant a written agreement to recognize Tenant’s Lease, Tenant shall attorn to such purchaser and this Lease
shall continue.

 

	16.2   	Transfer of Building.

 

If the Building is sold or otherwise
transferred by Landlord or any successor, Tenant shall attorn to the purchaser or transferee and recognize it as the landlord under
this Lease, and, provided the purchaser or transferee assumes all obligations under this Lease thereafter accruing, the transferor
shall have no further liability hereunder.

 

	16.3   	Estoppels.

 

Either party will within ten
(10) days after notice from the other execute, acknowledge, and deliver to the other party a certificate certifying whether
or not this Lease has been modified and is in full force and effect; whether there are any modifications or alleged breaches
by the other party; the dates to which rent has been paid in advance, and the amount of any security deposit or prepaid rent;
and any other facts that may reasonably be requested. Failure to deliver the certificate within the specified time shall be
conclusive upon the party of whom the certificate was requested that the Lease is in full force and effect and has not been
modified except as may be represented by the party requesting the certificate. If requested by the holder of
any encumbrance, or any underlying lessor, Tenant will agree to give such holder or lessor notice of and an opportunity to
cure any default by Landlord under this Lease.

 

 

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	17.1   	Attorney Fees.

 

In any litigation arising out of this Lease, including
any bankruptcy proceeding, the prevailing party shall be entitled to recover attorney fees at trial and on any appeal or petition
for review. If Landlord incurs attorney fees because of a default by Tenant, Tenant shall pay all such fees whether or not litigation
is filed. If Landlord employs a collection agency to recover delinquent charges, Tenant agrees to pay all collection agency and
other fees charged to Landlord in addition to rent, late charges, interest, and other sums payable under this Lease.

 

	18.1   	Quiet Enjoyment.

 

Landlord warrants that as long as Tenant complies with
all terms of this Lease, it shall be entitled to possession of the Premises free from any eviction or disturbance by Landlord or
parties claiming through Landlord.

 

	18.2   	Limitation on Liability.

 

Notwithstanding any provision
in this Lease to the contrary, neither Landlord nor its managing agent or employees shall have any liability to Tenant for loss
or damages to Tenant’s property from any cause, nor arising out of the acts, including criminal acts, of other tenants of
the Building or third parties, nor any liability for consequential damages, nor liability for any reason which exceeds the value
of its interest in the Building.

 

	19.1   	Additional Rent: Tax Adjustment.

 

Tenant shall pay to Landlord,
as additional rent, Tenant’s Proportionate Share of real property taxes for the Building and its underlying land. Effective
January 1 of each year Landlord shall estimate the amount of real property taxes for the ensuing calendar year above base year.
Tenant shall pay each month, at the same time as Base Rent, one twelfth of Landlord’s estimate of Tenant’s Proportionate
Share of real property taxes, provided that Landlord may revise it’s estimate during any year with reasonable cause and
the additional estimate shall be payable as equal additions to rent for the remainder of the calendar year. Following the end
of each calendar year, or when actual tax year information becomes available, Landlord shall compute the actual real property
taxes and bill Tenant for any deficiency or credit Tenant with any excess collected. Tenant shall pay any such deficiency within
thirty (30) days after Landlord’s billing, whether or not this Lease shall have expired or terminated at the time of such
billing. “Real property taxes” as used herein shall mean all taxes and assessments of any public authority against
the Building and the land on which it is located, the cost of contesting any tax and any form of fee or charge imposed on Landlord
as a direct consequence of owning or leasing the Premises, including but not limited to, rent taxes, gross receipt taxes, leasing
taxes, or any fee or charge wholly or partially in lieu of or in substitution for ad valorem real property taxes or assessments,
whether now existing or hereafter enacted. If any portion of the Building is occupied by a tax-exempt tenant so that the Building
has a partial tax exemption under ORS 307.112 or a similar statute, then real property taxes shall mean taxes computed as if such
partial exemption did not exist. If a separate assessment or identifiable tax increase arises because of improvements to the Premises,
then Tenant shall pay 100 percent of such increase.

 

		19.2   	Additional
Rent: Cost-of-Living Adjustment.

 

Effective on each
anniversary following the Commencement Date of this Lease, the Landlord shall be entitled to recover additional rent which
shall be a percentage of Base Rent equal to the percentage increase, if any, in the Consumer Price Index published by the
United States Department of Labor, Bureau of Labor Statistics. The percentage increase shall be computed by comparing the
schedule entitled “West Urban Region, All Items, 1982-84-100” for the latest available month three months
preceding the month in which the Lease term commenced with the same figure for the same month in the years for which the
adjustment is computed. All comparisons shall be made using index figures derived from the same base period and in no event
shall this provision operate to decrease the monthly rent for the Premises below the monthly Base Rent, plus property tax
adjustments and operating expense adjustments as provided in this Lease. If the index cited above is revised or discontinued
during the term of this Lease then the index that is designated by the Portland Metropolitan Association of Building Owners
and Managers to replace it shall be used.

 

 

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	19.3   	Additional Rent: Operating Expense Adjustment

 

Tenant shall pay as additional
rent Tenant’s Proportionate Share of the amount by which operating expenses for the Building increase over those experienced
by Landlord during the Base Year for expenses stated in the Basic Lease Terms. Effective January 1 of each year Landlord shall
estimate the amount by which operating expenses are expected to increase, if any, over those incurred in the base year. Monthly
rent for that year shall be increased by one-twelfth of Tenant’s share of the estimated increase, provided that Landlord
may revise its estimate during any year with reasonable cause and the additional estimate shall be payable as equal additions to
rent for the remainder of the calendar year. Following the end of each calendar year, Landlord shall compute the actual increase
in operating expenses and bill Tenant for any deficiency or credit Tenant with any excess collected, Tenant shall pay any such
deficiency within thirty (30) days after Landlord’s billing, whether or not this Lease shall have expired or terminated at
the time of such billing. As used herein “operating expenses” shall mean all costs of operating, maintaining, and repairing
the Building as determined by standard real estate accounting practice, including, but not limited to: all water and sewer charges;
the cost of natural gas and electricity provided to the Building; janitorial and cleaning supplies and services; administration
costs and management fees; superintendent fees; security services, if any; insurance premiums; licenses, permits for the operation
and maintenance of the Building and all of its component elements and mechanical systems; ordinary and emergency repairs and maintenance,
and the annual amortized capital improvement cost (amortized over such a period as Landlord may select but not shorter thah the
period allowed under the Internal Revenue Code and at a current market interest rate) for any capital improvements to the Building
required by any governmental authority or those which have a reasonable probability of improving the operating efficiency of the
Building. “Operating Expenses” shall also include all assessments under recorded covenants or master plans and/or by
owner's associations. If electricity or other energy costs increase between the date of this Lease and last day of the Base Year,
(i) Tenant shall pay to Landlord, on a monthly basis as additional rent, its Proportionate Share of such cost increase for the
period from the date of such increase until the first estimated payment due under this Section, and (ii) Landlord may adjust the
calculation of Base Year operating expenses by using the energy costs in effect on the date of this Lease.

 

	19.4   	Disputes.

 

If Tenant disputes any computation
of additional rent or rent adjustment under Sections 19.1 through 19.3 of this Lease, it shall give notice to Landlord not later
than thirty (30) days after the notice from Landlord describing the computation in question, but in any event not later than (thirty)
30 days after expiration or earlier termination of this Lease. If Tenant fails to give such a notice, the computation by Landlord
shall be binding and conclusive between the parties for the period in question. If Tenant gives a timely notice, the dispute shall
be resolved by an independent certified public accountant selected by Landlord whose decision shall be conclusive between the parties.
Each party shall pay one-half of the fee for making such determination except that if the adjustment in favor of Tenant does not
exceed 10 percent of the escalation amounts for the year in question, Tenant shall pay (i) the entire cost of any such third-party
determination; and (ii) Landlord’s out-of- pocket costs and reasonable expenses for personnel time in responding to the audit,
Nothing herein shall reduce Tenant’s obligations to make all payments as required by this Lease. In no event shall Landlord
have any liability to Tenant based on its calculation of additional rent or rent adjustments except and only the obligation to
cause any correction to be made pursuant to this Section 19.4. Tenant shall maintain as strictly confidential the existence and
resolution of any dispute regarding rent charges hereunder.

 

 

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	20.1   	Hazardous Materials.

 

Neither Tenant nor Tenant's agents
or employees shall cause or permit any Hazardous Material, as hereinafter defined, to be brought upon, stored, used, generated,
released into the environment, or disposed of on, in, under, or about the Premises, except reasonable quantities of cleaning supplies
and office supplies necessary to or required as part of Tenant's business that are generated, used, kept, stored, or disposed of
in a manner that complies with all laws regulating any such Hazardous Materials and with good business practices. Tenant covenants
to remove from the Premises (or the Building, if applicable), upon the expiration or sooner termination of this Lease and at Tenant's
sole cost and expense, any and all Hazardous Materials brought upon, stored, used, generated, or released into the environment
during the term of this Lease. To the fullest extent permitted by law, Tenant hereby agrees to indemnify, defend, protect, and
hold harmless Landlord, Landlord's managing agent and their respective agents and employees, and their respective successors and
assigns, from any and all claims, judgments, damages, penalties, Fines, costs, liabilities, and losses that arise during or after
the term directly or indirectly from the use, storage, disposal, release, or presence of Hazardous Materials on, in, or about the
Premises which occurs during the term of this Lease. Tenant shall promptly notify Landlord of any release of Hazardous Materials
in, on, or about the Premises that Tenant or Tenant's agents or employees become aware of during the Term of this Lease, whether
caused by Tenant, Tenant’s agents or employees, or any other persons or entities. As used herein, the term “Hazardous
Materials” shall mean any hazardous or toxic substance, material, or waste which is or becomes regulated by any local governmental
authority, the state of Oregon or the United States Government. The term “Hazardous Materials” shall include, without
limitation, any material or substance that is (i) defined as a “hazardous waste,” “extremely hazardous waste,”
“restricted hazardous waste,” “hazardous substance,” “hazardous material,” or “waste”
under any federal, state, or local law, (ii) petroleum, and (iii) asbestos. The provisions of this Section 20, including, without
limitation, the indemnification provisions set forth herein, shall survive any tennination of this Lease.

 

	20.2   	Mold.

 

Tenant shall not allow or permit any conduct or omission
at the Premises, or anywhere on Landlord’s property, that will promote or allow the production or growth of mold, spores,
fungus, or any other similar organism, and shall indemnify and hold Landlord harmless from any claim, demand, cost, and expense
(including attorney fees) arising from or caused by Tenant’s failure to strictly comply with its obligations under this provision.

 

	21.1   	Complete Agreement; No Implied Covenants.

 

This Lease and the attached Exhibits
and Schedules if any, constitute the entire agreement of the parties and supersede all prior written and oral agreements and representations
and there are no implied covenants or other agreements between the parties except as expressly set forth in this Lease, Neither
Landlord nor Tenant is relying on any representations other than those expressly set forth herein.

 

	21.2   	Space Leased AS IS.

 

Unless otherwise stated in this
Lease, the Premises are leased AS IS in the condition now existing with no alterations or other work to be performed by Landlord
except as provided for in Exhibit B.

 

	21.3   	Captions.

 

The titles to the Sections of
this Lease are descriptive only and are not intended to change or influence the meaning of any Section or to be part of this Lease.

 

	21.4   	Nonwaiver.

 

Failure by Landlord to promptly
enforce any regulation, remedy, or right of any kind under this Lease shall not constitute a waiver of the same and such right
or remedy may be asserted at any tune after Landlord becomes entitled to the benefit thereof notwithstanding delay in enforcement.

 

	21.5   	Consent.

 

Except where otherwise provided
in this Lease, either party may withhold its consent for any reason or for no reason whenever that party’s consent is required
under this Lease,

 

	21.6   	Force Majeure.

 

If performance by Landlord of
any portion of this Lease is made impossible by any prevention, delay, or stoppage caused by governmental approvals, war, acts
of terrorism, strikes, lockouts, labor disputes, acts of God, inability to obtain services, labor, or materials or reasonable substitutes
for those items, governmental actions, civil commotions, fire or other casualty, or other causes beyond the reasonable control
of Landlord, performance by Landlord for a period equal to the period of that prevention, delay, or stoppage is excused.

 

 

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		Landlord	 	Tenant

 

    	 

    	 

    

 

	21.7   	Commissions.

 

Each party represents that it
has not had dealings with any real estate broker, finder, or other person with respect to this Lease in any manner, except for
the broker(s) identified in the Basic Lease Terms. Landlord shall pay a leasing commission in accordance with a separate agreement
between Landlord and broker.

 

	21.8   	Successors.

 

This Lease shall bind and inure
to the benefit of the parties, their respective heirs, successors, and permitted assigns.

 

	21.9   	Financial Reports.

 

Within fifteen (15) days after
Landlord's request, Tenant will furnish Tenant's most recent audited financial statements (including any notes to them) to Landlord,
or, if no such audited statements have been prepared, such other financial statements (and notes to them) as may have been prepared
by an independent certified public accountant or, failing those, Tenant's internally prepared financial statements. Tenant will
discuss its financial statements with Landlord and will give Landlord access to Tenant’s books and records in order to enable Landlord
to verify the financial statements. Landlord will not disclose any aspect of Tenant’s financial statements except (1) to
Landlord's lenders or prospective purchasers of the Building who have executed a sales contract with Landlord, (2) in litigation
between Landlord and Tenant, or (3) if required by court order.

 

	21.10 	Waiver of Jury Trial.

 

To the maximum extent
permitted by law, Landlord and Tenant each waive right to trial by jury in any litigation arising out of or with respect to
this Lease.

 

	21.11 	Exhibits.

 

The following Exhibits are attached hereto and incorporated
as a part of this Lease:

 

	Exhibit “A”	-	Premises
	Exhibit “B”	-	Work Agreement
	Exhibit "C”	-	Rules and Regulations
	Exhibit “D”	-	Guaranty

 

	22.     	Option to Renew N.A.

 

 

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IN WITNESS WHEREOF, the duly authorized
representatives of the parties have executed this Lease as of the day and year first written above.

 

	LANDLORD:	Oregon City Building Limited Partnership
	 	 	 
	 	By:	/s/ Steve Blindheim
	 	 	Steve Blindheim
	 	Title:	Partner
	 	Date:	12/3/10
	 	 
	TENANT:	Deco Distilling
	 	 	 
	 	By:	/s/ William A. Adams
	 	 	William A. Adams
	 	Title:	President
	 	Date:	Nov 29, 2010
	 	 	 
	 	By:	/s/
    Lenny Gotter
	 	 	Lenny Gotter
	 	Title:	Vice President
	 	Date:	11-29-10

 

 

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	Standard Form of OFFICE LEASE
	©2004 PORTLAND METROPOLITAN ASSOCIATION OF BUILDING OWNERS AND MANAGERS

 

EXHIBIT “A”

Premises

 

 

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Standard Form of OFFICE LEASE

	© 2004 PORTLAND METROPOLITAN ASSOCIATION OF BUILDING OWNERS AND MANAGERS

 

EXHIBIT “B”

Work Agreement

 

SECTION 1      IMPROVEMENTS PROVIDED
BY LANDLORD.

 

Unless otherwise agreed by Landlord and Tenant in an addendum
to the Lease, Landlord shall provide the following improvements in the Premises (“Landlord’s Work”) and shall
obtain, at Landlord’s cost, the permits therefor:

 

1. Landlord
agrees to install stainless steel sink, as example given by Tenant in “Spokane Stainless Products” # SSP2C23X23L24,
with Landlord option to acquire used if available. Exact model does not have to be the one reiterated here, it can be slightly
different as long as both parties are in agreement.

 

2. Walls to be painted off-white in both front
and back main rooms only. Excludes ceilings. Floors are to be repainted in current blue color.

 

3. Install
new stairs in front landing area as well as installation of new railing.

 

4. All
work to be completed after federal regulatory approval of business moving to its new location has been received by Tenant and shared
in writing with Landlord.

 

5. Landlord
warrants that all lighting and mechanical components (inclusive of the service elevator) within the space are operational and in
good working order.

 

SECTION 2       IMPROVEMENTS PROVIDED AT TENANT’S EXPENSE.

 

Unless otherwise agreed by Landlord and Tenant in an addendum
attached to the Lease, all improvements constructed in the Premises in addition to those listed in Section 1 of this Work Agreement
shall be approved in writing by Landlord pursuant to Section 3 of this Work Agreement and the cost thereof, including the cost
of obtaining all necessary permits and approvals, shall be paid by Tenant.

 

SECTION 3     DESIGN OF TENANT IMPROVEMENTS.

 

Tenant shall retain the services of a licensed qualified
architect or engineer, approved in advance by Landlord, to prepare the necessary drawings, including, without limitation, Basic
Plans and Working Plans as described below for construction of the tenant improvements (“Tenant’s Plans”). All
Tenant’s Plans shall be prepared at Tenant’s expense and shall be subject to the prior written approval of Landlord.

 

Tenant’s architect or engineer shall determine
that the work shown on Tenant’s Plans is compatible with the basic Building plans and that necessary basic Building modifications
are included in Tenant’s Plans. All such modifications, including, without limitation, all penetrations of the Building shell,
shall be subject to Landlord’s approval and the cost thereof shall be paid by Tenant.

 

The Basic Plans shall include (i) fully dimensional
architectural floor plans showing partition layout, clearly identifying and locating equipment requiring special plumbing or mechanical
systems, areas subject to above normal loads, special openings in the floor, ceiling, or walls, and other major or special features;
(ii) fully dimensional plans locating telephone and electrical receptacles, outlets, and other items requiring electrical power
(for special conditions, equipment, power requirements, and manufacturer’s model numbers must be included); (iii) a lighting
layout showing locations of all light fixtures and partitions; and (iv) any proposed alterations in or about the Premises. Four
sets of the Basic Plans shall be delivered to Landlord within _______ days after Reference Date of the Lease.

 

 

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Landlord shall review the Basic Plans and shall either
approve the basic Plans or reject them, in which ease Landlord shall specify the deficiencies in the Basic Plans as submitted.
If the Basic Plans are rejected. Tenant shall resubmit revised Basic Plans as soon as practicable until Landlord’s approval
has been obtained. Following Landlord’s approval of the Basic Plans, Tenant’s architect or engineer shall produce full
working drawings for construction sufficient to obtain all necessary permits and with sufficient detail to construct the improvements,
including specifications for every item included thereon (the “Working Plans”). The Working Plans shall be delivered
to Landlord within thirty (30) days after landlord’s approval of the Basic Plans.

 

Tenant shall be responsible for delays and additional
costs in completion of Tenant’s improvements caused by changes made to any of Tenant’s plans after the delivery dates
specified above in this Section 3, by inadequacies in any of Tenant’s Plans, or by delays in delivery of special materials
requiring long lead times, and for any other costs or expenses that do not result from the negligence or default of Landlord.

 

SECTION 4 CONSTRUCTION OF TENANT IMPROVEMENTS.

 

Upon completion of the Working Plans and at the request
of Tenant, landlord and its contractor shall provide to Tenant in writing an estimate of the cost of improvements to be provided
at Tenant’s expense pursuant to Section 2 of this Work Agreement. Within five (5) days after Tenant’s receipt of such
cost, Tenant shall delete any items which Tenant sleets not to have constructed and shall authorize construction of the balance
of the improvements. In the absence of such written authorization, Landlord shall not be obligated to commence work on the Premises
and Tenant shall be responsible for any costs due to any resulting delay in completion of the Premise. If required by Landlord’s
contractor, Tenant shall enter into a construction contract with respect to the construction of its improvements. Notwithstanding the provisions of this Section 4, Tenant may request Landlord’s approval to use a contractor
other than Landlord’s for the construction of Tenant’s improvements. Tenant shall include with any request for such
approval a written estimate by Tenant’s contractor of the cost of the improvements. Landlord shall respond to any request
for such approval within ten (10) days after receipt of the request. If Landlord approve Tenant’s request to use its own
contractor; the work performed by such contractor shall be in conformance with the provisions of Section 4 of this Work Agreement.

 

If Landlord’s contractor is to construct Tenant’s
improvements, then prior to commencement of construction of the improvements, Tenant shall either (i) deposit with Landlord each
in an amount equal to the estimated cost of the improvements to be installed at Tenant’s expenses pursuant to Section 2 of
this Work Agreement; or (ii) provide Landlord with other evidence or assurance, such as a bond or letter of credit, satisfactory
to Landlord of Tenant’s ability to pay the estimated cost of such improvements. Landlord’s contractor shall then complete
the improvements in accordance with the Working Plans. Any additional amounts payable by Tenant for the actual cost of the improvements
shall be paid on or before the Commencement of the Lease, or upon receipt of the final accounting. If cash is deposited by Tenant
as provided above in this Section 4, any excess paid by Tenant over the actual cost of the improvements shall be promptly refunded
to Tenant by Landlord.

 

If Tenant desires any change to its improvements, Tenant
shall submit a written request for such change to Landlord, together with all plans and specifications necessary to show and explain
changes from the approved Working Plans. Any such change shall be subject to Landlord’s contractor is constructing Tenant’s
improvements, Landlord or such contractor shall notify Tenant in writing of the amount, if any, which will be charged or credited
to Tenant to reflect the cost of such change.

 

If any work is to be performed in connection with the
improvements on the Premises by Tenant’s contractor as provided in Section 4 of this Work Agreement, such work shall conform
to the following requirements:

 

	4.1.1		Such work shall proceed only upon Landlord’s written approval of the
public liability and property damage insurance carried by Tenant’s contractor. Landlord shall have the right to require
Tenant’s contractor to post a payment or performance bond in an amount equal to the estimated cost of the work to be performed
by such contractor. Tenant shall supply Landlord with the name, address, and emergency telephone number for Tenant’s contractor
and all subcontractors retained by Tenant’s contractor.

 

 

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	4.1.2		All such work shall be done in conformity with a valid building permit and
other permit and other permits when required, a copy of which shall be furnished to Landlord before such work is commenced, and
in any case, all such work shall be performed in accordance with all applicable governmental regulations and all applicable safety
regulations established by Landlord or its contractor for the Building generally. Notwithstanding any failure by landlord to abject
to any such work, Landlord shall have no responsibility for Tenant’s failure to comply with all applicable governmental
regulations.

 

	4.1.3		Landlord may require that all such work be performed by union labor in accordance
with any union labor agreements applicable to the trades being employed at the Building.

 

	4.1.4		All such work shall be scheduled through Landlord and shall be performed in
a manner and at times which do not impede or delay any work on the Premises being performed by Landlord’s contractor.

 

	4.1.5		Tenant’s contractor shall store any materials only in the Premises or
in such other space as may designated by Landlord or its contractor from time to time. All trash and surplus construction materials
shall also be stored within the Premises and shall be promptly removed from the Building.

 

Tenant’s entry into the Premises for any purpose, including
without limitation inspection or performance of work by Tenant’s contractor, prior to the Commencement Date, shall be subject
to all the terms and conditions of the Lease, including without limitation the provisions of the Lease relating to the maintenance
of insurance and indemnification by Tenant, but excluding the provisions of the Lease relating to the payment of rent. Tenant’s
entry shall mean entry by Tenant, its officers, contractor, licenses, agents, servants, employees, guests, invitees, or visitors.

 

Tenant shall indemnify and hold harmless Landlord from and against
any all claims, losses, liabilities, and expenses (including without limitation attorney fees) arising out of or in any way related
to the activities of Tenant’s contractors (and any subcontractors) in the Premises or the Building. Without limiting the
generality of the foregoing, Tenants shall promptly reimburse Landlord upon demand for any extra expenses incurred by the Landlord
as a result if faulty work done by Tenant or its contractors, any delays caused by such work, or inadequate clean-up.

 

 

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Standard Form of OFFICE LEASE

© 2004 PORTLAND METROPOLITAN ASSOCIATION
OF BUILDING OWNERS AND MANAGERS

 

 

EXHIBIT “C”

Rules & Regulations

 

1.         The
entrances, halls, corridors, stairways, exits, and elevators shall not be obstructed by any of the tenants or used for any purpose
other than for ingress from their respective premises. The entrances, halls, corridors, stairways, exits, and elevators are not
intended for use by the general public but for the tenant and its employees, licensees, and invitees. Landlord reserves the right
to control and operate the public portions of the Building and the public facilities, as well as facilities furnished for the common
use of the tenants, in such manner as it in its reasonable judgment deems best for the benefit of the tenants generally. No tenant
shall invite to the tenants’ premises, or permit the visit of, persons in such numbers or under such conditions as to interfere
with the use and enjoyment of any of the plazas, entrances, corridors, elevators, and other facilities of the Building by any other
tenants. Fire exits and stairways are for emergency use only, and they will not be used for any other purpose.

 

2.
         Landlord may refuse admission to the Building outside of the business
hours of the Building to any person not producing identification satisfactory to Landlord. If Landlord issues identification passes,
Tenant shall be responsible for all persons for whom it issues any such pass and shall be liable to Landlord for all acts or omissions
of such persons.

 

3.
         No awnings or other projections shall be attached to the outside walls
of the Building. No curtains, blinds, shade, or screens, if any, which are different from the standards adopted by Landlord for
the Building shall be attached to or hung in any exterior window or door of the premises of any tenant without the prior written
consent of Landlord.

 

4.
         No sign, placard, picture, name lettering, advertisement, notice,
or object visible from the exterior of any tenant’s premises shall be displayed in or on the exterior windows or doors, or
on the outside of any tenant’s premises, or at any point inside any tenant’s premises where the same might be visible
outside of such premises, without the prior written consent of Landlord. Landlord may adopt and furnish to tenants general guidelines
relating to signs inside the Building and Tenant shall conform to such guidelines. All approved signs or lettering shall be prepared,
printed, affixed, or inscribed at the expense of the tenant and shall be of a size, color, and style acceptable to Landlord.

 

5.
         The windows that reflect or admit light and air into the halls, passageways,
or other public places in the Building shall not be covered or obstructed by any tenant, nor shall any bottles, parcels, or other
articles be placed on the windowsills.

 

6.
         No showcases or other articles shall be put in front of or affixed
to any part of the exterior of the Building, nor placed in the halls, corridors, or vestibules.

 

7.
         No bicycles, vehicles, animals, fish, or birds of any kind shall be
brought into or kept in the premises of any tenant or the Building.

 

8.
         No noise, including, but not limited to, music or the playing of musical
instruments, recordings, radio or television, which, in the judgment of Landlord, might disturb other tenants in the Building,
shall be made or permitted by any tenant.

 

9.
         No tenant, nor any tenant’s contractors, employees, agents,
visitors, invitees or licensees, shall at any tune bring into or keep upon the premises or the Building any inflammable, combustible,
explosive, environmentally hazardous or otherwise dangerous fluid, chemical, or substance.

 

10.
        All movement of freight, furniture, packages, boxes, crates, or any other
object or matter of any description must take place during such hours and in such elevators, and in such manner as Landlord or
its agent may determine from time to time. Any labor and engineering costs Incurred by Landlord in connection with any moving herein
specified, shall be paid by Tenant to Landlord, on demand.

 

11.
         No tenant shall use its premises, or permit any part thereof to be
used, for manufacturing or the sale at retail or auction of merchandise, goods, or property of any kind, unless said use is consistent
with the use provisions of the Lease.

 

12.
         Landlord shal1 have the right to prescribe the weight and position
of safes and other objects of excessive weight, and no safe or other object whose weight exceeds the lawful load for the area upon
which it would stand shall be brought into or kept upon any tenant’s premises. If, in the judgment of Landlord, it is necessary
to distribute the concentrated weight of any heavy object, the work involved in such distribution shall be done at the expense
of the tenant and in such manner P J as Landlord shall determine.

 

 

	 	Please Initial
	 	 	 	 
	Page 19		 	
		Landlord	 	Tenant

  

    	 

    	 

    

  

13.
         Landlord, its contractors, and their respective employees, shall have
the light to use, without charge therefor, all right, power, and water in the premises of any tenant while cleaning or making repairs
or alterations in the premises of such tenant.

 

14.
         No premises of any tenant shall be used for lodging or sleeping or
for any immoral or illegal purpose.

 

15.
         The requirements of tenants for any services by Landlord will be attended
to only upon prior application to the Landlord. Employees of Landlord shall not perform any work or do any thing outside of their
regular duties, unless under special instructions from Landlord.

 

16.
         Canvassing, soliciting, and peddling in the Building are prohibited
and each tenant shall cooperate to prevent the same.

 

17.
         Each tenant shall store its trash and garbage within its premises.
No material shall be placed in the trash boxes or receptacles if such material is of such nature that it may not be disposed of
in the ordinary and customary manner of removing and disposing of office building trash and garbage in the area of the Building
without being in violation of any law or ordinance governing such disposal, All garbage and refuse disposal shall be made only
through entryways and elevators provided for such purposes and at such times as Landlord shall designate. No tenant shall cause
or permit any unusual or objectionable odors to emanate from its premises which would annoy other tenants or create a public or
private nuisance.

 

18.
         No coin vending machine, video game, coin or token operated amusement
device, or similar machine shall be used or installed in any tenant’s premises without Landlord’s prior written consent.

 

19.
         No bankruptcy, going out of business, liquidation, or other form of
distress sale shall be held on any of tenant’s premises. No advertisement shall be done by loudspeaker, barkers, flashing
lights, or displays or other methods not consistent with the character of an office building.

 

20.
         Nothing shall be done or permitted in any tenant’s premises,
and nothing shall be brought into or kept in any tenant’s premises, which would impair or interfere with the economic heating,
cleaning, or other servicing of the Building or the premises, or the use or enjoyment by any other tenant of any other premises,
nor shall there be installed by any tenant any ventilating, air conditioning, electrical, or other equipment of any kind which,
in the reasonable judgment of Landlord, might cause any such impairment or interference.

 

21.
         No acids, vapors, or other similar caustic materials shall be discharged
or permitted to be discharged into the waste lines, vents, or flues of the Building. The water and wash closets and other plumbing
fixtures in or serving any tenant’s premises shall not be used for any purpose other than the purposes for which they were
designed or constructed, and no sweepings, rubbish, rags, acids, or other foreign substances shall be deposited therein. All damages
resulting from any misuse of the fixtures shall be borne by the tenant who, or whose servants, employees, agents, invitees, visitors,
or licensees shall have caused the same.

 

22.
         All entrance doors in each tenant’s premises shall be left locked
and all windows shall be left closed by the tenant when the tenant’s premises are not in use. Entrance doors to the tenant’s
premises shall not be left open at any time. Each tenant, before closing and leaving its premises at any time, shall turn out all
lights.

 

23.
         Hand trucks not equipped with rubber tires and side guards shall not
be used within the Building.

 

24.
         Landlord reserves the light to rescind, modify, alter, or waive any
rule or regulation at any time prescribed for the Building when, in its reasonable judgment, it deems it necessary, desirable or
proper for its best interest and for the best interests of the tenants generally, and no alteration or waiver of any rule or regulation
in favor of any tenant shall constitute a waiver or alteration in favor of any other tenant. Landlord shall not be responsible
to any tenant for the nonobservance or violation by any other tenant of any of the rules and regulations at any time prescribed
for the Building.

 

25.
         Landlord reserves the right to add to, modify, or otherwise change
these Rules and Regulations. Such changes shall become effective when written notice thereof is provided to tenants of the Building.

 

 

	 	Please Initial
	Standard Form of OFFICE LEASE	 	 	 
	Page 20		 	
	 	Landlord	 	Tenant

 

    	 

    	 

    

  

EXHIBIT “D”

GUARANTY

 

In consideration of
the agreement of Oregon City Building Limited Partnership (“Landlord”) to enter into a Lease dated November
8, 2010 (the “Lease”) between Landlord and Deco Distilling (“Tenant”) pertaining to certain
premises located at the undersigned William A. Adams and Lenny Gotter (“Guarantor”) hereby absolutely and unconditionally
guarantees the punctual payment of all Rent, as defined in the Lease, and other payments required to be paid by Tenant, and the
prompt performance of all other obligations of Tenant under the Lease, If Guarantor consists of more than one person or entity,
all liability of Guarantor hereunder shall be joint and several.

 

Guarantor shall be
directly and primarily liable to Landlord for any amount due from Tenant under the Lease, without requiring that Landlord first
proceed against Tenant, join Tenant in any proceeding brought to enforce this Guaranty, or exhaust any security held by Landlord.
Guarantor agrees that Landlord may deal with Tenant in any manner in connection with the Lease without the knowledge or consent
of Guarantor and without affecting Guarantor’s liability under this Guaranty. Without limiting the generality of the foregoing,
Guarantor agrees that any extension of time, assignment of the Lease, amendment or modification to the Lease, delay or failure
by Landlord in the enforcement of any right under the Lease, or compromise of the amount of any obligation or liability under the
Lease made with or without the knowledge or consent of Guarantor shall not affect Guarantor’s liability under this Guaranty.
Guarantor’s liability under this Guaranty shall not be affected by any bankruptcy, reorganization, insolvency or similar
proceeding affecting Tenant, or by any termination or disaffirmance of the Lease or any of Tenant’s obligations thereunder
in connection with such proceeding. This Guaranty shall remain in full force and effect until the performance in full to Landlord’s
satisfaction of all obligations of Tenant under the Lease.

 

Guarantor hereby waives
any claim or other right now existing or hereafter acquired against Tenant that arises from the performance of Guarantor’s
obligations under this Guaranty, including, without limitation, any rights of contribution, indemnity, subrogation, reimbursement,
or exoneration. Guarantor hereby agrees to indemnify Landlord and hold it harmless from and against all loss and expense, including
legal fees, suffered or incurred by Landlord as a result of claims to avoid any payment received by Landlord from Tenant with respect
to the obligations of Tenant under the Lease,

 

Guarantor hereby waives
presentment, protest, notice of default, demand for payment, and all other suretyship defenses whatsoever with respect to any payment
guaranteed under this Guaranty, and agrees to pay unconditionally upon demand all amounts owed under the Lease. Guarantor further
waives any setoff, defense, or counterclaim that Tenant or Guarantor may have or claim to have against Landlord and the benefit
of any statute of limitations affecting Guarantor’s liability under this Guaranty.

 

If Landlord retains
an attorney to enforce this Guaranty or to bring any action or any appeal in connection with this Guaranty, the Lease, or the collection
of any payment under this Guaranty or the Lease, Landlord shall be entitled to recover its attorney fees, legal expenses, costs,
and disbursements in connection therewith, as determined by the court before which such action or appeal is heard, in addition
to any other relief to which Landlord may be entitled. Any amount owing under this Guaranty shall bear interest from the date such
amount was payable to Landlord to the date of repayment at a rate equal to the lesser of 15 percent and the maximum rate permitted
by law.

 

Landlord shall have
the unrestricted right to assign this Guaranty in connection with an assignment of the Lease without the consent of, or any other
action required by, Guarantor. Each reference in this Guaranty to Landlord shall be deemed to include its successors and assigns,
to whose benefit the provisions of this Guaranty shall also inure. Each reference in this Guaranty to Guarantor shall be deemed
to include the successors and assigns of Guarantor, all of whom shall be bound by the provisions of this Guaranty, Within ten (10)
days after delivery of written demand therefor from Landlord, Guarantor shall execute and deliver to Landlord a statement in writing
certifying that this Guaranty is unmodified and in full force and effect, which statement may be conclusively relied upon by any
prospective purchaser or encumbrancer of the premises or property. If any provision of this Guaranty is held to be invalid or unenforceable,
the validity and enforceability of the other provisions of this Guaranty shall not be affected. All parties agree that this
Personal Guaranty shall expire two years from the commencement date.

 

 

	 	Please Initial
	Standard Form of OFFICE LEASE	 	 	 
	Page 21		 	
	 	Landlord	 	Tenant

  

    	 

    	 

    

  

	GUARANTOR:	 
	 	 
	Name 	William Adams
	Social Security No. 	###-##-####
	Driver’s License No.	9553261
	State Issuing Driver’s License 	OR
	Address for Notices: 	4436 NE WY6ANT St.
	 	PORTLAND OR 97218
	 	 
	Dated:	Nov 29, 2010
	 	 
	GUARANTOR:	 
	 	 
	Name	Lenny Gotter
	Social Security No.	###-##-####
	Driver’s License No. 	5304227
	State Issuing Driver’s License 	OR
	Address for Notices: 	7512 GE Rural GX
	 	Portland OR 97206
	 	 
	Dated:	11-29-10

 

 

	 	Please Initial
	Standard Form of OFFICE LEASE	 	 	 
	Page 22		 	
	 	Landlord	 	Tenant

  

    	 

    	 

    

  

SECOND
LEASE AMENDMENT

 

This lease Amendment entered into on the 25th
day April, 2012 by and between Deco Distilling (the “Lessor”), and Oregon City Building
Limited Partnership (the “Lessee”), for the 712 SE Hawthorne Building located at 1512 SE
7th Ave. Portland, OR 97214.

 

		II.	RECITALS

 

Lessor and Lessee, being parties
to that certain Indenture of lease dated November 24, 2010, and amended March 8th, 2012, (the “Lease”)
hereby express their mutual desire and intent to amend by this writing those terms, covenants and conditions pertaining to the
term and to the rate of the Lease and the Premises.

 

		III.	AMENDMENTS

 

		1.	Tenant agrees to lease second floor room between elevator access landing area and current leased room in the corner for
an additional $30.00/month rent. This is in addition to the $30.00/month Tenant is currently paying for the corner room (March
8, 2012 Lease Amendment).

		2.	Tenant will be required to carry insurance as stipulated in the Lease to cover this additional space.

		3.	Lease to commence April 26, 2012, and run contiguously with remaining term of the Lease (November 14, 2014).

		4.	Tenant agrees to be responsible for own security to this room including locks and if ramp is needed Tenant agrees to supply
it.

 

Except as modified herein, all other terms
and conditions of the Lease between the parties above described, as attached hereto shall continue in full force and effect.

 

IN WITNESS WHEREOF, Lessor and Lessee have executed this Agreement
as of the day and year first above written.

 

	Oregon City Building Limited Partnership	Deco Distilling

  

	Lessor:	 	 	Lessee:	 /s/ Lenny Gotter
	 	 	 	 	4-26-12

   

Lease Amendment Deco Distilling 042512

 

    	 

    	 

    

 

ADDENDUM
“A”

 

This Lease Amendment entered into on the 4th day February,
2011 by and between Deco Distilling (the “Lessor”), Oregon City Building Limited
Partnership (the “Lessee”), for the Hawthorne Building located a 1512 SE
7th, Portland, OR 97214.

 

		II.	RECITALS

 

Lossor and Lessee, being parties
to that certain indenture of lease dated November 24, 2010, hereby express their mutual desire and intent to amend
by this writing those terms, covenants and conditions pertaining to the term and to the rate of the Lease.

 

		III.	AMENDMENTS

 

		1.	Landlord agrees to allow access and lease commencement to Tenants upon completion of lendlord Tenant Improvements which shall
be completed no later than April 1, 2011.

 

		2	Landlord has been advised that the Tenant has not received full federal approval for the distillery at this location. If Tenant
is denlod federal approval, the terms of this lease will be deemed null and void upon Tenant reimbursement to Landlord of Tenant
requested improvements as well as any unamortized real estate commissions. Total of both Tenant Improvement costs and commissions
is approximately $9,900 at time of signing this addendum.

 

Except as modified herein, all other terms
and conditions of the Lease between the parties above described, as attached hereto shall continue in full force and effect.

 

IN WITNESS WHEREOF, Lessor and Lessee have executed this Agreement
as of the day and year first above written.

 

	Oregon City Building Limited Partnership	 	Deco Distilling
	 	 	 
	Lessor:	 	 	Lessee:	/s/ Lenny Gotter
	Date:	 	 	Date:	3-7-11
	 	 	 	 	 
	 	 	 	Lessee:	
	 	 	 	Date:	3/7/2011 

  

    	 

    	 

    

  

THIRD
LEASE AMENDMENT

 

This Lease Amendment entered into on the ____
day July 2014 by and between Deco Distilling (the “Tenant”) and Oregon City
Building Limited Partnership (the “Landlord”), for the 712 SE Hawthorne Building located at 1512
SE 7th Ave, Portland, OR 97214.

 

		II.	RECITALS

 

Lessor and Lessee, being parties
to that certain indenture of lease dated November 24, 2010, and amended March 8th, 2012 and amended again
April 25, 2012, (the “Lease”) hereby express their mutual desire and intent to amend by this writing those terms,
covenants and conditions pertaining to the term and to the reate of the Lease and the Premises.

 

		III.	AMENDMENTS

 

		1.	Terms of the Lease are hereby extended for an additional Twelve (12) months commencing December 1, 2014 and expiring November
30, 2015.

		2.	Lease rate to be $1,750.00 per month.

		3.	Tenant to have two (2) one (1) year options to renew with notice to Landlord of intent to renew to be given in writing not
less than ninety (90) days from lease term expiration, Base Rent of Option term(s) to be at three percent (3%) above the previous
term’s Base Rent.

		4.	Tenant agrees to keep the upstairs area clean of personal and business materials during construction of new fire safety
corridor and shall have all Tenant materials, except those in the two second floor rooms cureentlhy being leased by Tenant, free
of all Tenant materials after January 1, 2015.

		5.	No food products are to be placed in garbage containers kept on second floor.

 

Except as modified herein, all other terms
and conditions of the Lease between the parties above described, as attached hereto shall continue in full force and effect.

 

IN WITNESS WHEREOF, Lessor and lessee have executed this Agreement
as of the day and year first above written.

 

	Oregon City Building Limited Partnership	Deco Distilling

 

	Lessor:	 	 	Lessee:	 
	 	 	 	 	 
	Date:	 	 	Date:	 

  

THIRD LEASE AMENDMENT Deco Distilling July 2014Exhibit 10.9

 

SPECIALTY LEASE AGREEMENT          Type
R

 

This Specialty Lease
Agreement (“Agreement”) is made as of this 20th day of January, 2015, by
and between PPR Washington Square LLC, a Delaware Limited Liability Company (the “Landlord”) and Eastside Distilling,
LLC, a Oregon Limited Liability Company DBA: Eastside Distilling (the “Tenant”), based on the following facts and
circumstances:

 

A.      Landlord
is the owner of certain real property, commonly known as Washington Square (“Center”); and

 

B.     Tenant
desires to lease certain premises at the Center.

 

In consideration of
the rent and other charges to be paid and the covenants to be performed by Tenant hereunder, Landlord does hereby lease and demise
to Tenant, and Tenant does hereby lease and take from Landlord, the Premises hereinafter described, upon the terms and conditions
hereinafter set forth:

 

1.     Premises.
The “Premises” are located within the portion of the Center known as L02B containing approximately 3001 square
feet, which location is depicted on Exhibit “A” attached hereto and made a part hereof by this reference, where the
Tenant is permitted to display and sell its merchandise. No other portion of the Center may be used by Tenant except for the Common
Area in common with other persons. As used herein, the term “Common Area” shall mean all realty and improvements in
or at the Center now or hereafter made available by Landlord for the general use, convenience and benefit of Tenant and other tenants
upon the Center. Tenant agrees that the Premises may be relocated at any time at the discretion of, and without liability to, the
Landlord.

 

2.     Term.
The “Term” of this Agreement shall commence on January 1, 2015 (the “Commencement Date”) and will expire
on January 31, 2015 unless sooner terminated as provided herein. Tenant will operate its business upon the Premises throughout
the Term. Tenant agrees that Tenant’s rights under this Agreement may be terminated upon Thirty (30) day’s written
notice from Landlord in Landlord’s sole and absolute discretion and without cause.

 

3.     Use.
Tenant shall use the Premises during the Term for the sole purpose of displaying and selling (subject to the approval of Landlord)
to the public at retail (Food) for the retail sale of Eastside Spirits and related merchandise to include t-shirts, hats, pint
glasses, shot glasses and drink mixers. Tenant is allowed to provide tastings to customers in accordance with All State Laws.

 

Landlord will provide the tenant two advertising
standees to be placed in the mall. Specific location is based on best availability based on sold inventory. Tenant is responsible
for production of collateral for standees. and for no other use or purpose.

 

4.     First
and/or Last Months Fees. On or before the Commencement Date, Landlord shall collect from Tenant a sum in the amount of Three
Thousand Seven Hundred Fifty Dollars ($3,750.00). This amount will be applied to the first and/or last months fees due on this
Agreement as noted below in paragraph 6 of this agreement.

 

5.     Exchanges
and Refund Policy. Tenant shall be required to exchange or refund all merchandise with receipt, to the customer within (30)
days from the purchase date. Tenant shall not limit the return of merchandise to exchanges or merchant credits, and “Exchanges
Only” or similar signs are not permitted.

 

    	 

    	 

    

 

6.     Fees.     Tenant
shall pay to Landlord the following Fees for Tenant’s use of the Premises, the sum of Three Thousand Seven Hundred Fifty
Dollars ($3,750.00) for the term total of this lease agreement Unless otherwise provided herein, all fees due Landlord pursuant
to this Agreement shall be paid in advance on or before the first day of each calendar month during the Term by Tenant payable
to Landlord. Rent payments shall be made by automatic deduction from Tenant’s bank account. Tenant shall provide Landlord,
upon execution of the Lease, a voided check or authorization form from Tenant’s bank to authorize such automatic deductions.
In the event the Term covers only a portion of any specific calendar month, the Base Rent and the Other Rent/Contributions for
such month, as well as the base sales dollar amount(s) provided in Paragraph 7 below, shall be prorated by multiplying such amounts
by a fraction, the numerator of which is the number of days in such calendar month which fall within the Term and the denominator
which is 30. The fees payable herein include the excise, transaction, rental, sales or privilege tax (except net income tax) now
or hereafter levied or imposed upon Landlord or the owner(s) of the Center by any governmental agency on account of, attributed
to or measured by this Agreement which taxes are subject to change based on applicable law.

 

Payment Schedule:

 

Fees shall be paid monthly and for Landlord
accounting purposes shall be allocated as follows:

 

	Tenant Payments	 	Landlord Accounting	 
	Due	 	Amount	 	 	Base Rent	 	 	Electric	 	 	Rental Tax	 	 	Last Month
 Rent	 
	1/1/15	 	 	3,750.00	 	 	 	3,750.00	 	 	 	0.00	 	 	 	0.00	 	 	 	0.00	 

 

The fees noted below are in addition to
those noted in paragraph 6 and will not be included with any % rent calculation. These fees will cover any miscellaneous fees for
visual merchandising, application fees, etc.

 

No Additional Fees

 

7.     Percentage
Rent. Tenant shall pay to Landlord, as “Percentage Rent,” an amount equal to 15% of the excess of all gross sales
and revenues (as hereinafter defined) made at the Premises during each calendar month during the Term over base sales of $25,000.00.
Percentage Rent shall be due and payable for each month on or before the 15th day of the following calendar month during the Term
(and within 15 days after the end of the Term) and delivered to the Landlord.

 

8.     Utilities.
In the event electricity and/or any other utility is separately metered to the Premises, Tenant shall solely be responsible
for contracting for such separately metered utility and shall pay all costs directly to the utility supplier. Tenant shall be solely
responsible for using any and all utilities in a safe and hazardless manner, complying in all respects with applicable codes and
ordinances.

 

9.     Plans
and Specifications. Tenant shall perform, at Tenant’s sole cost and expense, any and all refurbishing to the Premises
as necessary to bring the Premises into an appropriate operating condition, all in accordance with architectural and construction
plans and other data approved by Landlord. Tenant agrees to submit for Landlord’s approval all such architectural and construction
plans and other data not later than fifteen (15) days from the date of this Agreement. Upon approval by Landlord of such plans
and data, Tenant shall commence and diligently prosecute to completion the construction and installation of Tenant’s improvements
in the Premises strictly in accordance with such approved plans and data. All store signage must be approved by Landlord prior
to installation by authorized sign company or installation contractor. Tenant must have storefront signage installed prior to store
opening. Tenant is responsible to provide Landlord with all required local city permits.

 

    	Page 2 of 13

    	 

    

 

No changes, modifications
or alterations may be made to said approved plans or other data without the prior written consent of Landlord. In the event Tenant’s
improvements have not been constructed in strict accordance with said approved plans, Tenant, upon Landlord’s request, shall
immediately remove its improvements and other personal property from the Premises and this Agreement shall thereon immediately
terminate. In such event, Landlord may recover from Tenant the unpaid rent which would have been earned after termination and any
other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform its
obligations under this Agreement.

 

Upon the expiration
or earlier termination of this Agreement, Landlord shall have the option, which option may be exercised in Landlord’s sole
and absolute discretion, to require Tenant to either (i) quit and surrender the Premises with all improvements thereon or (ii)
remove all Tenant’s improvements from the Premises and take all steps necessary to restore the Premises to its condition
on the date hereof.

 

10.     Mechanics’
Lien Tenant agrees not to permit or cause any mechanic’s lien to be filed against the Premises or the Center by reason
of any work, labor, services or material performed at or furnished to the Premises, to Tenant, or to anyone holding the Premises
through or under the Tenant. Nothing in this Agreement shall be construed as consent on the part of the Landlord to subject the
Landlord’s estate in the Premises to any mechanic’s liens or liability under the mechanic’s lien laws in the
state in which the Center is located.

 

11.     Sales
Report. Within 5 days after the end of each Monthly during the Term, Tenant shall submit to Landlord a report of all gross
sales and revenues during the month just ended certified as true and correct signed by Tenant. Sales can be mailed to: Washington
Square Management Office 9585 S.W. Washington Square Road Portland, OR 97223 or faxed to: (602) 494-5906, or emailed to: Property.washsquare.salesreporting@macerich.com.
For purposes of this Agreement, “gross sales and revenues” shall mean the selling price of all goods, merchandise and
services sold, leased, licensed or delivered in, upon and/or from the Premises by Tenant, its subtenants, licensees and/or concessionaires
or any other person, firm or entity; provided, however, that gross sales and revenues shall exclude sales tax specifically paid
by customers as part of the sales price and collected by Tenant to be paid to the taxing authority. In the event Tenant fails to
deliver such report by such date, in addition to all other rights and remedies of Landlord, Tenant shall pay Landlord a late charge
of Two Hundred Dollars ($200.00), which shall become immediately due and payable. Such charge shall not be in lieu of Landlord’s
other remedies under this Agreement or at law, and acceptance by Landlord of such charge shall not preclude Landlord from seeking
any other available remedy.

 

Landlord will have the right from time
to time, upon three (3) days written notice, to audit or examine all of Tenant’s sales records. If any deficiency in the
payment of the Percentage Rent is disclosed by such audit, Tenant shall immediately pay such deficiency to Landlord plus the cost
of the Landlord’s audit.

 

12.     Late
Charges. If Tenant shall fail to make any payment Fees (as noted in paragraph 6), Percentage Rent, or any other charge to be
paid hereunder when due, Tenant shall pay Landlord a late charge equal to Two Hundred Dollars ($200.00). Payment will be due within
3 days of written notice of default. If default continues for a period in excess of five (5) days, Tenant in addition shall pay
Landlord interest on the amounts owing (until paid) at a rate equal to the lesser of: (i) twelve percent (12%) per annum; or (ii)
the maximum legal rate. These late charges shall not be in lieu of Landlord’s other remedies under this Agreement or at law,
and acceptance by Landlord of such charges shall not preclude Landlord from seeking any other available remedy.

 

    	Page 3 of 13

    	 

    

 

13.     Duty
to Maintain. Tenant shall, at its sole cost and expense, keep the Premises and all equipment, fixtures and plate glass therein
in a clean and wholesome condition, in good order and repair, free and clear of litter and debris and free from any objectionable
noises, odors or nuisances and in compliance with all health and police regulations, in all respects and at all times. In the event
the Premises involve a kiosk or are otherwise within the Common Area, Tenant’s duty to maintain as provided by the foregoing
sentence shall also apply to the Common Area within a radius of twenty feet (20’) of the Premises. Tenant agrees to dispose
of litter and debris only in receptacles designated by Landlord. If Tenant refuses or neglects to make repairs or perform maintenance
as required hereby, Landlord shall have the right (without notice in emergency situations and upon reasonable notice in other situations),
but not the obligation, to make such repairs or perform such maintenance and to bill Tenant for the reasonable costs thereof, which
costs shall be immediately payable by Tenant to Landlord as additional rent.

 

14.     Compliance
with Laws. Tenant shall, at its sole cost and expense, comply with all laws, ordinances, orders, rules and regulations (state,
federal, municipal or any other agency having or claiming jurisdiction) related to the use, occupancy or condition of the Premises.
All business licenses and other applicable permits and licenses shall be secured and paid for by Tenant.

 

15.     Manner
of Operation. At all times, Tenant shall conduct its activities in a tasteful manner in accordance with Landlord’s rules
and regulations for the Center as described in Paragraph 18 of this Agreement and in a manner that will complement the aesthetics
of the Premises and the Center.

 

15.1     Tenant’s
Right to Solicit Customers. Tenant shall operate the Premises in a first-class and reputable manner and adhere to Landlord’s
established rules, which may be revised from time-to-time. Tenant and its employees shall not hawk or call out to any person in
the Common Area. Tenant and its employees shall remain within arm’s length of the Premises when soliciting potential customers,
and shall be permitted to approach potential customers who are within six (6) feet directly in front of the Premises a maximum
of one (1) time as they pass the Premises; provided, however, (a) Tenant shall not adversely affect the premises of other Occupants
or in any way impede pedestrian traffic flow within the Common Area near the Premises, and in no event shall Tenant’s right
hereunder extend to the area in front of the storefronts of the stores adjacent to the Premises, (b) Tenant shall at all times
conduct itself in a manner not to be offensive or bothersome to the customers, patrons, employees, invitees or other Occupants
in the sole yet reasonable opinion of the manager of the Center, and (c) Tenant shall not have more than two (2) employees operating
the Premises at any given time without Landlord’s express written approval. It is expressly agreed and understood that Tenant
shall promptly respond in an appropriate manner to legitimate complaints to Tenant and/or the Center manager from customers, patrons,
employees, invitees or other Occupants regarding Tenant’s conduct in or about the Common Area. Tenant’s rights hereunder
shall be further expressly subject to (i) the rights of Landlord, other Occupants and such parties’ employees, agents, customers
and invitees to use the same in common with Tenant, (ii) covenants, conditions, restrictions, easements, mortgages and other matters
of record respecting the certain rights and obligations of the owner of the Center, which has been or will be recorded against
such real property and as amended, supplemented and/or restated from time to time and (iii) all Governmental Regulations. In the
event that the Center manager has given Tenant verbal notice (which notice shall be confirmed in writing after any such incident)
of the violation of the provisions of this Section more than two (2) times during a calendar year, then, upon a third (3rd) violation
notice, and for each subsequent violation, there will be a fine of $400.00 per occurrence; and in the event a seventh (7th) violation
notice is issued, the fine will be $800.00 per occurrence for such violation and for each subsequent violation. In addition to
Landlord’s rights hereunder, if during any calendar year, Landlord has provided Tenant with at least two (2) written notices
of violation of the provisions of this Section regarding customer solicitation, then upon Landlord’s receipt of any complaint
or notice regarding customer solicitation, Landlord may, at its option and by written notice, prohibit Tenant from soliciting any
customers or terminate this Lease. Such termination shall be effective on the date specified by Landlord in its notice to Tenant.
Calendar year, as used herein, shall mean the period from January 1 through December 31.

 

    	Page 4 of 13

    	 

    

 

16.     Insurance.       Tenant,
at its sole cost and expense, shall obtain and keep in full force and effect during the Term a policy of commercial general
liability insurance, including broad form property damage liability and personal injury liability coverage, insuring
Landlord and Tenant against liability arising out of the use or occupancy of the Premises and all areas appurtenant thereto.
Said insurance shall at all times be in an amount of not less than One Million Dollars ($1,000,000.00) combined each
occurrence in the aggregate for personal and bodily injury and property damage. All such insurance shall specifically insure
the Tenant as to liability for injury to or death of persons and injury or damage to property contained in Paragraph 17 of
this Agreement. Said policy shall also include as additional insured’s; Landlord, the Center’s management company
and the Center’s Merchants’ Association and all owned, managed, controlled, non-controlled and subsidiary
companies, corporations, entitles, joint ventures, limited liability companies and partnerships and all of their constituent
partners and members and such other entities as Landlord shall reasonably request. To the extent applicable, Tenant shall
also obtain and keep in full force and effect during the term of this Agreement, Workers’ Compensation Insurance in the
amount required by the State in which the Center is located and Employers’ Liability insurance on an
“occurrence” basis but, in either case, with a limit of not less than Five Hundred Thousand Dollars ($500,000.00)
each accident, Five Hundred Thousand Dollars ($500,000.00) each employee by disease and Five Hundred Thousand Dollars
($500,000.00) policy aggregate by disease, covering all persons employed by Tenant in the conduct of its operations
(including the all states endorsement and, if applicable, the volunteers endorsement). A certificate evidencing the coverage
required under this Paragraph 16 shall be delivered to Landlord prior to Tenant entering upon the Center. Such
certificate shall contain a provision that Landlord and Tenant shall be given a minimum of ten (10) days written notice by
the insurer prior to cancellation or termination in such insurance.

 

17.     Indemnity.      
Tenant shall indemnify, defend and hold Landlord harmless from and against any and all loss, cost, damage, injury or expense
arising out of or in any way related to (a) claims of injury to or death of persons, or damage to property, occurring or resulting
directly or indirectly from the use or occupancy of the Premises or activities of Tenant in or about the Premises or Center, except
to the extent such claims arise solely from the gross negligence of Landlord, and (b) any default, breach, violation or non-performance
by Tenant of any provision of this Agreement; such indemnity shall include, without limitation, the obligation to provide all costs
of defense against such claims.

 

18.     Rules
and Regulations.       Tenant agrees to comply with (and cause its officers, employees, contractors,
invitees and all others doing business with Tenant, to comply with) all rules and regulations of general applicability regarding
the Center as may be established by Landlord at any time and from time to time during the Term, including without limitation rules
and regulations pertaining to signs. See exhibit “B” attached for detailed operating rules.

 

19.     Hours
of Operation.       Tenant shall be open for business at the Premises during all regular Center
hours, and at such other hours as a majority of the other businesses operating at the Center are open. Accordingly, with respect
to any day during the Term that Tenant shall fail to be open for all the hours provided for above, Tenant shall pay a charge of
Two Hundred Dollars ($200.00) which shall become immediately due and payable, within 3 days of written notice of default. Such
charge shall not be in lieu of Landlord’s other remedies under this Agreement or at law, and acceptance by Landlord of such
charge shall not preclude Landlord from seeking any other available remedy.

 

20.     Assignment.
       This Agreement, and the rights granted hereunder, are personal to Tenant and are non-assignable and non-transferable by Tenant.
Any attempted assignment or other transfer of this Agreement, or sublease of any rights hereunder, by Tenant (collectively, “assign”
and/or an “assignment”) shall be null and void, have no effect and confer no rights upon any third party. Subject to
the foregoing, the terms and conditions of this Agreement shall be binding upon and inure to the benefit of Landlord and Tenant
and their respective successors, assigns, heirs, administrators, executors and representatives.

 

    	Page 5 of 13

    	 

    

 

21.     Default
by Tenant/Landlord Remedies.

 

21.1.     Default
by Tenant. The occurrence of any one or more of the following events shall constitute a default by Tenant under this Agreement:

 

21.1.1.     Monetary.
The failure by Tenant to make any payment of Rent or of any other sum required to be made by Tenant when due (however Tenant shall
have three [3] business days after written notice from Landlord to cure such default). “Rent”, as used in Paragraphs
21.1, 21.2 and 21.3 means Fees, Percentage Rent, Minimum Rent, and any additional rent payments due
hereunder.

 

21.1.2.     Failure
to Timely Open. If Tenant should fail to complete tenant’s work and initially open the Premises for business on or before
the Commencement Date adequately fixtured, staffed and stocked or, thereafter, to keep the Premises open for business adequately
fixtured, staffed or stocked on the days and hours required by this Agreement (however, Tenant shall have five [5] business days
after written notice from Landlord to cure such default).

 

21.1.3.     Abandonment
and Vacation. The vacation or abandonment of the Premises by Tenant. “Vacation” means any absence by Tenant from the
Premises in violation of this Agreement for fourteen (14) or more consecutive days.

 

21.1.4.     Cross-Default.
If Tenant (or any entity that Controls, is Controlled by or is under common Control with another specified entity, hereinafter
“Affiliate”) is in default of any other lease or occupancy agreement between Landlord (or an Affiliate of Landlord)
and Tenant (or an Affiliate of Tenant), all as the case may be.

 

21.1.5.     Bankruptcy.
The making by Tenant of any general assignment for the benefit of creditors, the filing by or against Tenant of a petition to have
Tenant adjudged a bankrupt or of a petition for reorganization or arrangement under any law relating to bankruptcy (unless, in
the case of a petition filed against Tenant, the same is dismissed within sixty [60] days), or the appointment of a trustee or
receiver to take possession of, or the attachment, execution or other judicial seizure of, substantially all of Tenant’s
assets located at the Premises or of Tenant’s interest in this Agreement, where such seizure is not discharged within thirty
(30) days.

 

21.1.6.     Other
Non-Monetary Defaults. The failure by Tenant to observe or perform any of the covenants, conditions or provisions of this Agreement
to be observed or performed by Tenant not previously covered by Paragraph 21.1.1 through Paragraph 21.1.5 above (however Tenant
shall have twenty [20] days after written notice from Landlord to cure such default except if the nature of Tenant’s default
is such that it cannot be cured solely by payment of money and more than twenty [20] days are reasonably required for its cure,
then Tenant shall be obligated to commence such cure within the twenty [20]-day period and thereafter diligently prosecute such
cure to completion).

 

21.1.7.     Sufficiency
of Notices. Any notice required or permitted by this Article 21.1 shall be in lieu of, and not in addition to, any notice required
under any Governmental Regulations providing for notice and any cure period. Landlord may (at its discretion) serve a statutory
notice to quit, a statutory notice to pay Rent or quit, or a statutory notice of default, as the case may be, to effect the giving
of any notice required by this Paragraph 21.1. No notice and opportunity to cure is conferred upon Tenant with regard to any default
except as expressly set forth in Paragraph 21.1.1 or 21.1.3 or elsewhere in this Agreement. Government Regulations, as used herein
means all laws, statutes, ordinances, rules, regulations, zoning codes, building codes, standards and requirements now or hereafter
in force of all governmental and quasi-governmental authorities, and of all board of fire insurance underwriters, having jurisdiction
of the Premises or the Center.

 

    	Page 6 of 13

    	 

    

 

21.1.8.     Involuntary
Assignment. An Involuntary Assignment that is not dismissed within sixty (60) days shall constitute a default by Tenant and Landlord
shall have the right to elect to terminate this Agreement if same is not dismissed within sixty (60) days, in which case this Agreement
shall not be treated as an asset of Tenant. All sums payable by Tenant under this Agreement shall be and remain the exclusive property
of Landlord and shall not constitute property of Tenant or of the estate of Tenant within the meaning of the Bankruptcy Code, 11
U.S.C. 101 et seq., as amended from time-to-time. Such sums which are not paid or delivered to Landlord shall be held in trust
for the benefit of Landlord, and shall be promptly paid or turned over to Landlord upon demand. Any person or entity to which this
Agreement is assigned pursuant to the provisions of the Bankruptcy Code shall be deemed without further act or deed to have assumed
all of the obligations of Tenant arising under this Agreement on and after the date of such assignment, and all of the terms and
provisions of this Agreement shall be binding upon such assignee. Any such assignee shall upon demand execute and deliver such
instruments and documents reasonably requested by Landlord confirming such assumption. Involuntary Assignment, as used herein,
means any transfer of interest of Tenant in the Lease by operation of law (including, without limitation, the transfer of this
Lease by testacy or intestacy, or in any bankruptcy or insolvency proceeding) and each of the following acts shall be considered
an Involuntary Assignment: (a) If Tenant is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors,
or institutes a proceeding under any bankruptcy law in which Tenant is the bankrupt; or, if Tenant is a partnership or consists
of more than one (1) person or entity, if any partner of the partnership or other such person or entity is or becomes bankrupt
or insolvent, or makes an assignment for the benefit of creditors; (b) if a writ of attachment or execution is levied on this Lease;
(c) if, in any proceeding or action to which Tenant is a party, a receiver is appointed with authority to take possession of the
Premises; or (d) there is any assumption, assignment, sublease or other transfer under or pursuant to the Bankruptcy Code.

 

21.2.     Landlord
Remedies. Upon a default hereunder, should Tenant fail within the time period, if any, specified in Article 21.1 to fully cure
such default, then without limiting Landlord in the exercise of any other right or remedy at law or in equity which Landlord may
have (all remedies provided herein being non-exclusive and cumulative), Landlord may do any one or more of the following:

 

21.2.1.     Continue
Agreement. Landlord may continue this Agreement in effect after Tenant’s default and recover Rent as it becomes due. Accordingly,
if Landlord does not elect to terminate this Agreement on account of any default by Tenant, Landlord may, from time-to-time, without
terminating this Agreement, enforce all of its rights and remedies under this Agreement, including the right to recover all Rent
and other monetary charges as they become due.

 

21.2.2.     Terminate
Agreement. Landlord may terminate Tenant’s right to possession by any lawful means, in which case this Agreement shall terminate
and Tenant shall immediately surrender possession of the Premises to Landlord. In such event Landlord shall be entitled to recover
from Tenant all damages incurred by Landlord by reason of Tenant’s default including (without limitation) the following:
(a) The worth at the time of award of any unpaid Rent which had been earned at the time of such termination; plus (b) the worth
at the time of award of the amount by which the unpaid Rent which would have been earned after termination until the time of award
exceeds the amount of such Rent loss that could have been reasonably avoided; plus (c) the worth at the time of award of the amount
by which the unpaid Rent for the balance of the Term after the time of award exceeds the amount of such Rent loss that can be reasonably
avoided; plus (d) any other amount and court costs necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s default or which in the ordinary course of things would be likely to result therefrom (including, without limiting
the generality of the foregoing, the reasonable amount of any commissions, finder’s fee, advertising costs, remodeling costs
and attorneys’ fees in connection with obtaining a replacement tenant amortized over the term of the new (replacement) lease);
plus (e) at Landlord’s election, such other amounts in addition to or in lieu of the foregoing as may be permitted from time-to-time
by applicable law. As used in subparagraphs (a) and (b) of this Section 21.2.2, the “worth at the time of award” shall
be computed by allowing interest at the Agreed Rate, and, as used in subparagraph (c) of this Section 21.2.2, the “worth
at the time of award” is to be computed by discounting such amount at the discount rate of the U.S. Federal Reserve Bank
of San Francisco at the time of award, plus one percent (1%). Agreed Rate, as used herein, means the prime commercial rate of interest
charged from time-to-time by Wells Fargo Bank, National Association (or, if the same does not exist, such other comparable bank
selected by Landlord), plus two percent (2%) per annum, but not to exceed the maximum rate of interest allowable under law.

 

    	Page 7 of 13

    	 

    

 

21.2.3.     Collect
Sublease Rents. Landlord may collect sublease rents (or appoint a receiver to collect such rents) and otherwise perform Tenant’s
obligations at the Premises, it being agreed, however, that neither the filing of a petition for the appointment of a receiver
for Tenant nor the appointment itself shall constitute an election by Landlord to terminate this Agreement.

 

21.2.4.     Cure
Default. Landlord may proceed to cure the default at Tenant’s sole cost and expense, without waiving or releasing Tenant
from any obligation hereunder. If at any time Landlord pays any sum or incurs any expense as a result of or in connection with
curing any default of Tenant (including any administrative fees provided for herein and reasonable attorneys’ fees), the
amount thereof shall be immediately due as a reimbursed cost.

 

21.2.5.     Disposition
of Property. Landlord may dispose of any personal property, other than inventory, merchandise or any other goods intended to be
offered for sale; however, if after at least ten (10) days written notice to Tenant such items still remain unclaimed then Landlord
shall have all its rights under this Section 21.2(e) remaining on the Premises in accordance with applicable statutes relating
to the disposition of abandoned property. If no such statute exists, Landlord shall have the right to retain possession of all
of the personal property left in the Premises (subject to the ten (10) day requirement set forth above) or, at Landlord’s
option, to require Tenant at any time to forthwith remove same, and if not so removed within three (3) business days, to take title
and possession of the same and to sell or otherwise dispose of the same, without any liability (a) to Tenant for such property
or (b) to pay to Tenant the proceeds from the sale thereof.

 

21.3.     No
Offsets. All covenants and agreements to be performed by Tenant under this Agreement shall be performed by Tenant at Tenant’s
sole cost and expense and without any offset to or abatement of Rent, except as otherwise expressly provided in this Agreement.
Tenant hereby waives any right to plead all non-compulsory counterclaims or offsets in any action or proceeding brought by Landlord
against Tenant for any default. This waiver shall not be construed, however, as a waiver of any right of Tenant to assert any non-compulsory
counterclaims or offsets in any separate action brought by Tenant.

 

22.     Termination.      Upon
the expiration or earlier termination of this Agreement for any reason whatsoever, Tenant shall leave the Premises in a neat and
broom clean condition, free of debris and in as good condition as when the Premises were originally delivered to Tenant, ordinary
wear and tear and casualty damage excepted, and shall promptly remove all personal property placed on the Premises by or on behalf
of Tenant. Tenant hereby authorizes and irrevocably appoints Landlord as its true and lawful attorney-in-fact to remove all such
personal property upon Tenant’s failure to remove all personal property from the Center after the expiration or earlier termination
of this Agreement. Tenant hereby waives any and all loss or damage thereto arising from the exercise of this power, and covenants
to indemnify and hold harmless Landlord from and against any costs, claims, liens, damages or attorney fees, costs and disbursements
arising from such removal. If Tenant holds over after the expiration or earlier termination of this Agreement without the express
written approval by Landlord, (a) such tenancy shall be at sufferance only and not a renewal of this Agreement or an extension
of the Term, (b) monthly installments of Base Rent, Percentage Rent and all other Fees shall be payable in an amount equal to two
(2) times the Base Rent, Percentage Rent and all other Fees for the months January through October; and four (4) times the Base
Rent, Percentage Rent and all other Fees for the months November and December in effect as of the last full calendar month of the
Term, and each shall be due and payable at the times specified therefor in this Agreement and (c) such tenancy shall be subject
to every other term, covenant and agreement contained herein. Nothing contained in this Paragraph 22 shall be construed as consent
by Landlord to any holding over by Tenant (or limit any of Landlord’s rights and remedies incident to a holding over under
this Agreement, at law or in equity), and nothing in this Paragraph 22 shall affect Landlord’s right to require Tenant to
perform all obligations under this Paragraph 22 and surrender possession of the Premises to Landlord as provided in this Agreement
upon the expiration or earlier termination of this Agreement or at any time subsequent thereto as Landlord may specify.

 

    	Page 8 of 13

    	 

    

 

23.     Suitability
of Premises. Tenant hereby accepts the Premises in an “AS IS” condition and Landlord expressly disclaims any warranty
or representation with regard to the condition, safety, security or suitability of the Center or Premises. It is understood by
Tenant that Landlord does not provide security protection for the Premises and/or Tenant’s personal property. The Premises
have not undergone an inspection by a Certified Access Specialist (CASp).

 

24.     Landlord’s
Access to Premises.Tenant agrees that Landlord, its agents, employees or any person authorized by Landlord may enter the Premises
at reasonable times for the purpose of inspecting its condition, making repairs or improvements to the Premises or the Center as
Landlord may elect (or be required) to make or exhibiting the Premises to prospective lessees. Landlord agrees not to disturb Tenant’s
conduct of business during such access except in the case of emergency.

 

25.     Entire
Agreement. This Agreement contains the entire agreement of the parties. Any representations or modifications concerning this
instrument shall be of no force and effect, excepting a subsequent modification in writing signed by the party to be charged.

 

26.     Notices.
All notices required hereunder shall be in writing and may be delivered by personal service to the other party (in which case
such notice shall be deemed delivered as of the day of such delivery), or sent postage prepaid by certified mail, return receipt
requested (in which case such notice shall be deemed delivered as of the third day after the date of such mailing), to the address
set forth below each party’s signature block.

 

27.     Severability.
If any term or provision of this Agreement or any portion of a term or provision hereof or the application thereof to any person
or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement shall not be affected thereby,
and each term and provision of this Agreement and each portion thereof shall be valid and be enforced to the fullest extent permitted
by law.

 

28.     Captions
and Terms The captions and section numbers appearing in the Agreement are for convenience only and are not a part of the Agreement
and do not in any way limit, amplify, define, construe or describe the scope or intent of the terms and provisions of this Agreement,
nor in any way affect this Agreement.

 

29.     Hazardous
Materials. Tenant shall at all times in all respects comply with all federal, state and local laws, ordinances and regulations
relating to industrial hygiene, environmental protection or the use, analysis, generation, manufacture, storage, presence, disposal
or transportation of petroleum products or by-products, or hazardous or toxic substances, materials or waste which is or becomes
regulated by any local, state or federal agency (collectively, “Hazardous Materials”). Tenant shall not cause or permit
any Hazardous Materials to be brought upon, kept or used in or about the Premises without the prior written consent of Landlord,
which consent may be withheld in Landlord’s sole and absolute discretion.

 

30.     Waste/Trash
Removal. Without limiting the generality of the foregoing paragraph, in the event waste and or trash removal for the Premises
is separately provided to the Premises, Tenant shall be solely responsible to pay all costs directly to the service provider as
designated by the Landlord.

 

    	Page 9 of 13

    	 

    

 

31.     Unauthorized
Communications Devices. Tenant shall not install or operate (excluding cellular phones or pagers) or permit the installation
or operation, at the Center or within the premises of any device, equipment of facility for transmitting, receiving, relaying or
amplifying communications signals used or operated as a part of a telecommunications network or global positioning system, or otherwise
emitting or receiving signals, frequencies, video date or voice communications, including, without limitation, any dish, panel,
antenna, satellite or cellular communications equipment, amplifiers, microcells, picocells or other similar devices or equipment
(collectively, “Communications Devices”). If Tenant fails to comply with the provisions of this Section 31, then in
addition to Landlord’s other remedies under this Lease, Landlord shall have the right to collect from Tenant in addition
to other Rent, a sum equal to twice the Fixed Minimum Rent (prorated on a daily basis) for each full or partial day Tenant fails
to comply with the provisions of this Section 31. Tenant acknowledges that its failure to comply with this Section 31 will cause
Landlord to suffer damages, which will be difficult to ascertain, and that the sum payable by Tenant under this section 31 represents
a fair estimate of such damages. The preceding prohibition shall not preclude Tenant from the use of any of the following, if in
each such case such telephones, cellular phones, computers and other permitted devices are used only by Tenant and used only in
the ordinary course of Tenant’s business at the Premises for the Permitted Use: (a) Telephones and computers connected directly
to telephone lines provided to the Premises, (b) cellular telephones using cellular transmission stations outside the Center of
(c) low-key cellular telephones used only for internal communications within the Premises or to a station within the Premises when
the station is connected to a telephone line provided to the Premises.

 

32.     Time
of the Essence; Nonwaiver. Time is of the essence of each and every provision of this Agreement. The waiver by Landlord in
any instance of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition
in any other instance and shall not be deemed a waiver of Landlord’s rights and remedies with respect to any subsequent breach
of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Base Rent, Percentage Rent,
Other Rent/Contribution or any other sum hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant
of any term, covenant or condition of this Agreement regardless of Landlord’s knowledge of such preceding default at the
time of the acceptance of such sum.

 

33.     Waiver
of Trial by Jury. Landlord and Tenant each hereby waive trial by jury in any action, proceeding or counterclaim brought by
either party against the other on any matter whatsoever arising out of or in any way connected with this Agreement or Tenant’s
use or occupancy of the premises, including any claim of injury or damages, and any emergency and other statutory remedy with respect
thereto.

 

34.     Attorneys’
Fees. In the event any legal action is commenced to enforce the terms of this Agreement, the prevailing party shall be awarded
its reasonable attorneys’ fees and court costs.

 

35.     Damage,
Destruction and Condemnation. In the event of a fire or any other casualty to all or a portion of the Premises or Center, or
in the event of a Taking of any portion or all of the Premises or the Center, then Landlord may terminate this Lease upon written
notice to the Tenant, such termination to be effective upon the date of such damage or upon the date the condemning authority takes
title, as the case may be, absent any termination, Tenant shall be obligated to promptly commence and diligently prosecute to completion
any work Tenant must undertake to restore the Premises to the same condition as when new and to open the Premises for business
within thirty (30) days after Landlord delivers the Premises to Tenant with any work Landlord is required to undertake, if any,
substantially complete. As used in this Paragraph 35, Taking shall mean any taking or appropriation for public or quasi-public
use by the right of eminent domain or otherwise by a taking in the nature of inverse condemnation, with or without litigation,
or a transfer by agreement in lieu thereof.

 

    	Page 10 of 13

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above written it is understood that all terms and conditions
of this lease are confidential.

 

	Landlord:	 	Tenant:
	 	 	 
	
        PPR Washington Square LLC,

        a Delaware Limited Liability Company
	 	
        Eastside Distilling, Inc.,

        a Nevada Corporation

        dba: Eastside Distilling

	
        By: Macerich Management Company

        a California Corporation, its Managing Agent
	 	 
	 	 	 	 	 	 	 
	By:	 	 	 	By:	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name: Steven Earles
	 	 	 
	Name: Thomas Randall	 	Its: CEO
	 	 	 
	Title: Senior Manager, Property Management	 	 
	 	 	 
	Address:	 	Address:
	9585 S.W. Washington Square Road	 	Eastside Distilling, Inc.
	Tigard, OR 97223	 	1805 SE M L King Blvd.
	Phone: 503-639-8865	 	Portland, OR 97214
	Fax: 503-620-5612	 	Phone: 503-926-7060 
	 	 	Fax: 866-554-0271
	Date:	 	 	 	Email: steven@eastsidedistilling.com
	 	 	 
	 	 	Date:	 	 
	 	 	 
	 	 	*****SSN or Federal Employer Identification Number:
	 	 	 
	 	 	*****7488
	 	 	 
	 	 	(Note: Must be supplied or Landlord will not enter into this agreement)

 

    	Page 11 of 13

    	 

    

 

EXHIBIT B

 

OPERATING RULES

 

Tenant covenants and agrees that Tenant
will comply with the rules and regulations set by Landlord from time to time for the operation of the Center, including but not
limited to those described in the Specialty Leasing Operations manuals and the following:

 

1. Tenant shall use and occupy the
Premises in a careful, safe and proper manner and shall keep the Premises in a clean and safe condition.

 

2. All loading and unloading of goods
shall be done only at such time, in the area and through the entrances designated for such purpose by Landlord.

 

3. Set up or takedown of cart display,
or delivery of boxed merchandise must be accomplished before or after Center hours.

 

4. All garbage and refuse shall be
kept in the interior of the cart or kiosk storage and shall be placed for collection in the malls main trash receptacles usually
located at various dock entrances.

 

5. No loudspeakers, televisions, photographs,
radio, flashing lights or other devices shall be used without the prior consent of the Landlord.

 

6. Tenant shall not operate any equipment,
which emits an odor deemed offensive in nature, with the exception of soap and potpourri odors.

 

7. Tenant and or its employees shall
not distribute any handbills or other advertising material in the Center or on automobiles parked in the parking areas.

 

8. All premises must be adequately
stocked with the merchandise permitted to be sold as detailed in the use clause of the Agreement and be kept neat in appearance
and manned during all operating hours. Tenant is required to accept mall Gift Cards as a form of payment for merchandise sold.

 

9. Any signage must be approved by
Center management and be professionally printed. A maximum of two (2) signs are allowed per cart/kiosk and may only be attached
to the cart or merchandise display. Going out of business or store closing signs are not permitted.

 

10. Tenant shall, within fourteen
(14) days prior to the commencement date, provide Landlord with a visual merchandising plan. If using a visual merchandiser, it
is Tenants responsibility to contact the visual merchandiser and meet to discuss details regarding set up. All Tenant supplied
fixtures must be professionally made. Any exceptions to the above display regulations must receive prior approval from Center management.

 

    	Page 12 of 13

    	 

    

 

  

11. Cart & kiosk tenants and their
employees may not eat, smoke or drink at their operation at any time. Any tenants that utilize aggressive selling techniques will
be given a warning and upon continued violation the lease will be terminated.

 

12. Dress code violations will be
enforced and are set forth individually by each center, a copy of the malls dress code was mailed with the executed lease agreement.

 

13. Fraternizing with friends and
family or reading books while working the cart or kiosk is unprofessional behavior and discourages business and therefore, is unacceptable.

 

14. Tenant and Tenant’s employees
shall not park their motor vehicles in those portions of the parking area designed for customer parking by Landlord. If Tenant
or Tenant’s employees shall park in portions of the parking area designate for customer parking, Center management or Security
may attach violation stickers or notices to such cars and have any such vehicle removed at employee’s expense.

 

15. Storage of excess inventory, security
curtain, trash cans and miscellaneous supplies or personal belongings must be inside the cart or kiosk storage areas or storage
areas, which can be leased from the Center’s management (available on a limited basis).

 

16. Tenant shall, at ALL TIMES offer
customers a satisfactory return and/or exchange policy on all purchases within thirty (30) days with receipt and merchandise. In
the event Tenant cannot satisfy customer with an exchange, Tenant shall be required to fully refund to customer the complete purchase
price in the form of payment made the to Tenant. This policy shall not apply if due to customer negligence. This policy is enforceable
to the extent that it does not otherwise contradict applicable City, State or Federal safety, hygiene or food laws.

 

17. If Tenant should fail to comply
with any rule or regulation set forth in the Agreement or these Operating Rules, and Landlord shall become involved in attempting
to enforce compliance by Tenant, Tenant agrees to pay Landlord a Two Hundred Dollars ($200.00) administrative fee, per each occurrence,
upon demand. The payment of an administrative fee by Tenant shall not waive any other remedies available to Landlord under this
Agreement or by law. 

 

    	Page 13 of 13

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