Document:

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                                                                    Exhibit 10.7

                              ANCILLARY AGREEMENT

        This Ancillary Agreement (this "Agreement") is being entered into
effective as of August 1, 2005, by and between Ritz Camera Centers, Inc., a
Delaware corporation ("RCC") and Ritz Interactive, Inc., a Delaware corporation
("RII").

                                    RECITALS

        A. RCC and RII are parties to that certain Second Amended and Restated
Agreement, with an effective date of August 1, 2005 (the "RCC Agreement").
Capitalized terms used but not defined herein have the meanings ascribed to such
terms in the RCC Agreement.

        B. RCC engages in substantial advertising of the RCC Products and the
RCC Marks.

        C. RII operates a network of websites through which it offers for sale a
variety of lifestyle products, including, but not limited to, certain of the RCC
Products.

        D. RII desires to include its domain name(s) in the advertising
materials used by RCC in connection with its advertising of the RCC Products
and/or the RCC Marks.

        E. RCC desires to include on the RII Network certain information with
respect to RCC, including, but not limited to, a store locator for RCC's retail
stores.

        IN CONSIDERATION OF THE FOREGOING RECITALS AND THE COVENANTS SET FORTH
HEREIN, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND ADEQUACY
OF WHICH ARE HEREBY ACKNOWLEDGED, THE PARTIES HEREBY AGREE AS FOLLOWS:

                                   1. GENERAL

        1.1 RCC Obligations. In consideration for the performance by RII of the
RII obligations described in SECTION 1.2, during the Term, RCC shall perform the
obligations described in this SECTION 1.1.

        1.1.1 During the Term, RCC shall, in a prominent manner consistent with
        its past practice, include in substantially all of RCC's advertising
        materials to the extent practicable (including the RCC catalogues and
        any newspapers, magazines or other media in which RCC advertises or
        otherwise markets any of the RCC Products or RCC Marks), the URL for at
        least one Internet Site on the RII Network as may be requested by RII.
        Any such reference to an Internet Site on the RII Network shall, to the
        extent requested by RII, be accompanied by a tagline that reads "a Ritz
        Interactive Website."

        1.1.2 During the Term, RCC shall not include in any of its advertising
        materials, or otherwise advertise, the Internet Sites of any business
        that competes with RII in the sale of RCC Products in any Internet
        Business.

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        1.1.3 As of the date hereof, RCC advertises certain of its products and
        services in the Popular Photography & Imaging magazine. During the Term,
        for so long as RCC shall continue to advertise in the Popular
        Photography & Imaging magazine, RCC shall, at the request of RII,
        include with its advertisements in the Popular Photography & Imaging
        magazine, the URL for each of RII's photography oriented websites, along
        with a telephone number provided by RII and/or other contact information
        provided by RII. Notwithstanding anything herein to the contrary, RCC
        shall have the right to terminate its obligations under this SECTION
        1.1.3 upon thirty days prior written notice to RII.

        1.2 RII Obligations. In consideration for the performance by RCC of the
RCC obligations described in SECTION 1.1, during the Term, RII shall perform the
obligations described in this SECTION 1.2.

        1.2.1 During the Term, RII shall include on the RCC Related Sites a
        store locator for the locations of the RCC retail stores, updated as
        reasonably requested by RCC to include current address information for
        the RCC retail stores.

        1.2.2 During the Term, to the extent that RII receives employment
        inquiries or other messages on or through the RII Network that RII
        determines were intended for RCC, RII shall promptly forward such
        inquiries or other messages on to RCC.

        1.2.3 During the Term, RII shall use its commercially reasonable efforts
        to include in the RII Network or in newsletters it sends out to its
        subscribers, promotional offers made by RCC (other than with respect to
        RCC Products); provided however, that RII has determined, in its sole
        discretion, that inclusion of such promotional offers on the RII Network
        or in its newsletters would not subject RII to additional liability
        under applicable law or detract from the quality or content of the RII
        Network or its newsletters.

        1.2.4 During the Term, RII shall pay to RCC $10,000 for each month
        (starting with August 2005) in which RCC fulfills its obligations to RII
        under SECTION 1.1.3 above. Notwithstanding anything herein to the
        contrary, RII shall have the right to terminate its obligations under
        this SECTION 1.2.4 upon thirty days prior written notice to RCC, such
        termination to be effective upon the earlier of (i) the end of the then
        current term of RCC's contractual obligation to Popular Photography &
        Imaging for advertising, and (ii) one year from the date RII delivers
        its written termination notice under this SECTION 1.2.4 to RCC.

                                   2. GENERAL

        2.1 RCC and RII may assign this Agreement, or any of their respective
rights and obligations hereunder, in whole or in part, provided that the
transferring party shall have first received the other party's written consent.
Except (i) as provided in the foregoing sentence, and (ii) for the assignment by
RCC of all of its rights and obligations under this Agreement to an unrelated
Person in connection with the acquisition by that third party of substantially
all of the assets or voting securities of RCC where such unrelated Person agrees
in writing that it succeeds to all of the rights and is subject to all of the
obligations of RCC under this Agreement, neither party may assign this Agreement
or any of their respective rights and obligations hereunder to

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any Person and any attempt to assign this Agreement without such consent shall
be void and of no effect. In the event that RII or RCC seeks the consent of the
other to a proposed assignment, the non-assigning party shall, within fifteen
(15) days of its receipt of such request, respond in writing that it consents or
does not consent to the proposed assignment.

        2.2 Any dispute or difference between the parties hereto arising out of
or relating to this Agreement shall be settled by arbitration in accordance with
the Commercial Rules of the American Arbitration Association by a panel of three
qualified arbitrators. RII and RCC shall each choose an arbitrator and the third
shall be chosen by the two arbitrators so chosen. If either RII or RCC fails to
choose an arbitrator within 30 days after notice of commencement of arbitration
or if the two arbitrators fail to choose a third arbitrator within 30 days after
their appointment, the American Arbitration Association shall, upon the request
of any party to the dispute or difference, appoint the arbitrator or arbitrators
to constitute or complete the panel as the case may be. Arbitration proceedings
hereunder may be initiated by either RII or RCC making a written request to the
American Arbitration Association, together with any appropriate filing fee, at
the office of the American Arbitration Association in Prince George's County,
Maryland. All arbitration proceedings shall be held in Prince George's County,
Maryland. Any order or determination of the arbitral tribunal shall be final and
binding upon the parties to the arbitration and may be entered in any court
having jurisdiction.

        2.3 RCC is an independent contractor and when its employees act under
the terms of this Agreement, they are acting under, and shall be deemed at all
times to be under, the supervision and responsibility of RCC; and no person
employed by RCC and acting under the terms of this Agreement shall be deemed to
be acting as agent or employee of RII or any customer of RII for any purpose
whatsoever. RII is an independent contractor and when its employees act under
the terms of this Agreement, they are acting under, and shall be deemed at all
times to be under, the supervision and responsibility of RII; and no person
employed by RII and acting under the terms of this Agreement shall be deemed to
be acting as agent or employee of RCC or any customer of RCC for any purpose
whatsoever.

        2.4 Each party shall comply with all laws and regulations applicable to
its activities under this Agreement.

        2.5 If any provision of this Agreement (or any portion thereof) or the
application of any such provision (or any portion thereof) to any Person or
circumstance shall be held invalid, illegal or unenforceable in any respect by
any arbitral tribunal of competent jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision hereof (or the remaining
portion thereof) or the application of such provision to any other Persons or
circumstances.

        2.6 All notices or other communications required or permitted to be
given hereunder shall be in writing and shall be delivered by hand, telecopier,
or sent, postage prepaid, by registered, certified or express mail or overnight
courier service and shall be addressed or delivered as noted below and shall be
deemed given (i) when so delivered by hand (with written confirmation of
receipt), (ii) when transmitted, if sent by telecopier (with written
confirmation of receipt) provided that a copy is mailed by registered or
certified mail, return receipt requested, (iii) when received by the addressee,
if sent by a nationally recognized overnight delivery service

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(receipt requested), or (iv) three days after mailing (one business day in the
case of express mail), if sent by registered mail (receipt requested):

               (a)    if to RII,

                      Ritz Interactive, Inc.
                      2010 Main Street, Suite 400
                      Irvine, CA 92614
                      Attn: President
                      Facsimile No. (949) 442-0210

                      With a copy to

                      Charles, Kane & Dye LLP
                      1920 Main Street, Suite 1070
                      Irvine, CA  92614
                      Attn:  Bruce H. Charles
                      Facsimile No. (949) 852-9878

               (b)    if to RCC,

                      Ritz Camera Centers, Inc.
                      6711 Ritz Way
                      Beltsville, Maryland 20705
                      Attn: Wade Mayberry
                      Facsimile No. (301) 419-2995

                      With a copy to

                      Carole M. Mendez, Esq.
                      6711 Ritz Way
                      Beltsville, Maryland 20705
                      Facsimile No. (301) 419-2995

        2.7 No failure of any party to exercise or enforce any of its rights
under this Agreement shall act as a waiver of such right.

        2.8 This Agreement may be executed in one or more counterparts, all of
which shall be considered one and the same agreement and shall become effective
when one or more such counterparts have been signed by each of the parties and
delivered to each of the other parties.

        2.9 This Agreement shall be governed by and construed in accordance with
the internal laws of the State of Maryland applicable to agreements made and to
be performed entirely within such State, without regard to the conflicts of law
principles of such State.

        2.10 This Agreement is for the sole benefit of the parties hereto and
nothing herein expressed or implied shall give or be construed to give to any
person, other than the parties hereto any legal or equitable rights hereunder.

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        IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives as of the date first above
written.

RITZ CAMERA CENTERS, INC.,
a Delaware corporation

By: /s/ Wade R. Mayberry
   -------------------------------------

Name: Wade R. Mayberry
     -----------------------------------

Title: President
      ----------------------------------

RITZ INTERACTIVE, INC.,
a Delaware corporation

By: /s/ Fred H. Lerner
   -------------------------------------
    Fred H. Lerner, President

                                       S-1<PAGE>

                                                                    EXHIBIT 10.8

                      AMENDED AND RESTATED LEASE AGREEMENT

      THIS AMENDED AND RESTATED LEASE (the "Lease") is made effective this 1st
day of January, 2005 ("Commencement Date") by and between Ritz Camera Centers,
Inc., a Delaware corporation ("Landlord") and Ritz Interactive, Inc., a Delaware
corporation ("Tenant").

                                   WITNESSETH:

      WHEREAS, Landlord and Tenant entered into and executed that certain Lease
dated January 1, 2000 pursuant to which Tenant leases from Landlord space in
Landlord's corporate offices and warehouses (the "Original Lease");

      WHEREAS, Landlord and Tenant now desire to amend and restate the terms of
the Original Lease, all as more fully set forth herein.

      NOW, THEREFORE, in consideration of the terms and conditions set forth in
this Amendment and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby agree
that the Original Lease is amended and restated in its entirety to read as
follows:

      1.    DEMISED PREMISES. Landlord does hereby grant, demise and lease to
Tenant, who does hereby take and lease from Landlord for the term hereinafter
specified, the office and warehouse space in the amounts and locations described
on Exhibit A attached hereto and made a part hereof (each such location listed
on Exhibit A, an "Office/Warehouse Location" and, collectively, all such
Office/Warehouse Locations, the "Demised Premises").

      2.    TERM.

            A. INITIAL TERM. The Term of this Lease shall commence on the
Commencement Date and shall continue thereafter for a term of ten (10) Lease
Years following the Commencement Date. The term "Lease Year" shall mean the
twelve (12) month period beginning on the Commencement Date and each successive
twelve (12) month period thereafter during the Term. The word "Term" shall mean
the Term of this Lease as described in this Paragraph 2.

            B. TERMINATION. Upon the happening of any of the following events
Landlord may, prior to the end of the Term and upon ninety (90) days notice to
Tenant, terminate this Lease, (1) to the Demised Premises in its entirety, upon
dissolution of Tenant or upon termination of that certain Second Amended and
Restated Agreement by and between Landlord and Tenant dated August 1, 2005, (2)
as to a specific Office/Warehouse Location(s), in the event (i) Landlord loses
its right to possession or ownership of the portion of the property/building in
which such Office/Warehouse Location is located (including, but not limited to,
a loss of Landlord's possessory

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rights resulting from Landlord's termination of the underlying lease for such
property/building) or (ii) Landlord moves or ceases its operations in the
portion of the property/building in which such Office/Warehouse Location is
located, or (3) as to the Office/Warehouse Location located at 6711 Ritz Way,
Beltsville, MD, in the event Landlord needs the space for its own use.

      3.    RENT. Tenant covenants and agrees to pay annual rent to Landlord, in
arrears, on or before ten (10) days after the last day of each Lease Year, at
the office of Landlord or at such other place designated by Landlord, without
any prior demand therefor, such rent being payable as follows:

            A. INITIAL LEASE YEAR. The annual rent for the first Lease Year of
the Term (i.e., the Lease Year terminating as of December 31, 2005) shall be
payable at the rates for each Office/Warehouse Location as set forth on Exhibit
A attached hereto and incorporated herein by this reference. Tenant shall pay a
late fee of One Hundred Dollars ($100.00) for the second and each subsequent
rent payment in the Lease Year not received by Landlord by the tenth (10th) day
after the last day of the subject Lease Year.

            B. SUBSEQUENT LEASE YEARS. The annual rent for each Office/Warehouse
Locations for Lease Years after the first Lease Year shall be equal to an amount
equal to the product of the annual rent for the immediately preceding Lease Year
multiplied by a fraction, the numerator of which shall be the Index (as defined
below) last published prior to the first month of the Lease Year in question and
the denominator of which shall be the Index last published prior to the first
month of the immediately preceding Lease Year. Notwithstanding the foregoing, in
no event shall the annual increase be more than five percent (5%) from the
previous Lease Year.

      The term "Index," as used herein, shall mean and refer to the Consumer
Price Index published by the U.S. Department of Labor, Bureau of Labor
Statistics, for the Washington - Baltimore metropolitan area, now known as the
"Consumer Price Index for All Urban Consumers: All Items, Washington-Baltimore,
(Index: November 1996=100)." In the event the Index shall be converted to a base
year other than November 1996, then the Index shall be converted to the Consumer
Price Index for which provision has been made. If the Consumer Price Index has
been discontinued, the adjustment of Minimum Rent shall be made by using a
generally accepted conversion substitution factor (selected by Landlord) that
reasonably approximates the Index as above described.

      4.    USE OF DEMISED PREMISES. The Tenant shall have the right to use the
Demised Premises for general offices and distribution/warehouse, subject to the
reasonable direction of Landlord. Tenant covenants for itself, its successors,
heirs, and assigns that it will not use or permit or suffer the use of the
Demised Premises in whole or in part for any purpose or use which will
contravene any applicable laws, or governmental rules or regulations.

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      5.    COMMON AREAS.

            A. TENANT'S RIGHT TO USE COMMON AREAS. During the Term, Tenant and
its contractors, agents, employees, licensees, invitees and suppliers shall be
entitled to the nonexclusive use, free of charge, but in common with others, of
the automobile parking areas, the entrances and exits thereto and the driveways
thereon, and the pedestrian walkways, restrooms and lunchrooms in the buildings
of which the Demised Premises are a part (collectively called "common areas")
for ingress and egress, parking of non-commercial vehicles, loading and
unloading of commercial vehicles, deliveries, pickups and other services to the
Demised Premises.

            B. MAINTENANCE OF COMMON AREAS. Landlord shall keep the common areas
in repair.

      6.    ASSIGNMENT AND SUBLETTING. Tenant may not sublet the Demised
Premises or assign its rights under this Lease.

      7.    TENANT'S GENERAL COVENANTS. Tenant covenants and agrees:

            A. RENT. To pay all rent as and when the same shall become due and
payable according to the terms hereof.

            B. TRASH. To keep the Demised Premises free of trash and dirt
accumulations and to furnish adequate and proper receptacles for trash and
garbage.

            C. MAINTENANCE AND REPAIRS. Except for the structural and other
repairs required to be made by Landlord pursuant to Sections 5 and 8 hereunder
and the matters required in order comply with laws to be performed by Landlord
pursuant to Section 8 hereunder, Tenant shall keep the Demised Premises in good
order and repair. At the termination of this Lease, or any extension or renewal
thereof, Tenant shall surrender the Demised Premises in good condition,
allowance being made for ordinary wear and tear and damage by fire, the elements
or other casualty, or by act of God or by public enemy.

            D. INSURANCE. Tenant shall provide, at its sole expense, and keep in
force during the Term for the benefit of Landlord and Tenant as insured parties,
and the Landlord's landlord, if any, and its mortgagee, as their respective
interests may appear, commercial general liability insurance in the amount of at
least One Million Dollars ($1,000,000) for each occurrence and Two Million
Dollars ($2,000,000) in the general aggregate for each of the Office/Warehouse
Locations set forth on Exhibit A. The limitations shall be increased
periodically over the Term as Landlord may from time to time require on the
basis that prudent owners of comparable centers are requiring increased
coverage. During the Term, Tenant, at its sole expense, shall provide and keep
in force workers' and statutory employers' compensation insurance, in form and
amounts required by law.

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      During the Term, Tenant, at its sole cost and expense, shall maintain in
full force and effect an insurance policy or policies, in a reputable company or
companies licensed to do business in each state where the Demised Premises are
located, providing protection against any peril included within the
classification of "fire and extended coverage," covering all Tenant's trade
fixtures, merchandise and other property in or about the Premises, and all
alterations, additions, improvements and betterments made by or on behalf of
Tenant for their full replacement cost. Such policy or policies of insurance
shall name Landlord and its landlord as a loss payee.

      During any period of construction on the Premises by Tenant, Tenant, at
Tenant's sole expense, shall provide Landlord with builders risk insurance
insuring Landlord and its landlord, any mortgagee if requested by Landlord, and
Tenant, written on a completed value basis in lieu of fire and extended coverage
insurance. During the Term, Tenant shall require any contractor performing work
on the Premises for Tenant to carry and maintain, at no expense to Landlord, a
non-deductible: (a) commercial general liability insurance, including, but not
limited to, contractor's liability coverage, contractual liability coverage,
completed operations coverage, broad form property damage endorsement and
contractor's protective liability coverage, to afford protection with limits, of
not less than One Million Dollars ($1,000,000.00) for each occurrence and Two
Million Dollars ($2,000,000.00) in the general aggregate; and (b) worker's and
statutory employers' compensation or similar insurance in form and amounts
required by law.

      All insurance required hereunder shall be issued by an insurance company
or companies rated in Best's Insurance Guide at least "A" as to general
policyholder rating and at least Class XII as to financial strength. Tenant
shall deliver to Landlord certificates evidencing the insurance required by this
Section 7, together with copies of the policies attached thereto and, with proof
that the premiums thereon have been paid, at the beginning of the Term and
thereafter not less than thirty (30) days prior to the expiration of any policy
period. The insurance may not be canceled or amended without thirty (30) days'
prior notice given to Landlord and at Landlord's request, to any mortgagees of
the Premises. Any insurance required to be provided by Tenant pursuant to this
Lease may be provided by blanket insurance covering the Premises and other
locations of Tenant, provided such blanket insurance complies with all of the
other requirements of this Lease with respect to the insurance involved.

      Tenant's failure to procure any insurance and renewal policies of
insurance required in this Lease, and to pay the premiums and renewal premiums
on any such policies of insurance as they become due and payable, and to deliver
all such certificates of insurance and renewals thereof or copies of policies to
Landlord within the time hereinabove limited, shall constitute an Event of
Default by Tenant under the terms of this Lease.

      Landlord and Tenant hereby waive the right to claim liability (by way of
subrogation or otherwise) against the other party for any loss or damages to the
extent of any insurance proceeds actually received plus the amount of any
deductible under any such policy. Each party shall obtain a clause in each
insurance policy required by this Lease stating that this waiver given prior to
an

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occurrence giving rise to a loss will not invalidate the policy.

      8.    LANDLORD'S GENERAL COVENANTS.

            A. STRUCTURAL AND OTHER REPAIRS. During the Term, Landlord agrees to
keep the structural portions of the Demised Premises (including, without
limitation, the roof and roof supports, gutters, downspouts, foundation and
structural supports, exterior and bearing walls, structural portion of the
floors, the slab and chimneys) and common areas in good order and repair.

            B. COMPLIANCE WITH LAWS. Landlord shall promptly comply with and
carry out all orders, requirements or conditions now or hereafter imposed upon
it by the ordinances, laws and or regulations of county, municipal, state,
federal and other applicable governmental authorities pertaining to the
structural and exterior portions of the Demised Premises or to the common areas,
including, but not limited to, the American With Disabilities Act of 1990 and
any other law now or hereafter adopted which regulates the physical requirements
of the building, including, but not limited to, such matters as access, rest
room facilities, etc.

            C. INSURANCE ON BUILDINGS AND COMMON AREAS. At all times during the
Term of the Lease and any extension or renewal thereof Landlord will insure in a
responsible insurance company or companies qualified to do business in the
states in which the Demised Premises are located, the buildings in which the
Demised Premises are located and common areas against loss or damage by fire and
smoke and vehicles, windstorm, hail, explosion, riot, civil commotion, aircraft
to the extent now or hereafter covered under standard coverage in an amount or
amounts equal to the actual cash value of the buildings in which the Demised
Premises are located and common areas.

      9.    QUIET ENJOYMENT. The Landlord covenants, warrants and represents
that the Landlord has full right and power to execute and perform this Lease and
to grant the estate demised herein; and that the Tenant on paying the rent
herein reserved and performing the covenants, and agreements hereof shall
peaceably and quietly have, hold and enjoy the Demised Premises and all rights,
easements, appurtenances and privileges belonging or in anyway appertaining
thereto, during the full Term of this Lease and any extensions thereof.

      10.   SUBORDINATION AGREEMENT. The rights of Tenant shall be subordinate
to any mortgage Landlord or its landlord, if any, shall place on the Demised
Premises. This Lease shall without the execution of any further instruments be
deemed subordinate to said mortgage, and Tenant agrees to execute and deliver to
the holder of said mortgage any instrument of subordination reasonably requested
by such mortgagee.

      11.   FIXTURES AND EQUIPMENT. Tenant may, upon Landlord's prior approval,
install any furniture, fixtures, equipment and machinery necessary to conduct
its business and the same shall remain its property, and they may be removed
before the expiration of the term. In the event any damage is done to the
Demised Premises in the removal, Tenant will promptly repair the damage or

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reimburse Landlord for the cost of such repairs as are necessary to restore the
Demised Premises to its original condition with ordinary wear and tear excepted.
In the event of Tenant's failure to remove any furniture, fixtures, equipment
and machinery within thirty (30) days after expiration of this term or any
renewal thereof, Tenant shall be deemed to have abandoned the same and it shall
become property of the Landlord.

      12.   ALTERATIONS. The consent of Landlord shall be required for any
additions, improvements, alterations and/or installations to any part of the
Demised Premises. Any additions, improvements, alterations, and/or installations
made by Tenant (except only movable warehouse and office furniture and fixtures)
shall (a) become and remain a part of the building in which said improvements,
alterations and/or installation are located, (b) remain Landlord's property upon
the termination of Tenant's occupancy of said building and (c) comply with laws
as provided in Section 8B. Tenant will save Landlord harmless from and against
all expenses, liens, claims or damages to either property or person which may or
might arise by reason of the making of any such additions, improvements,
alterations and/or installations. Landlord shall make such alterations as may be
required in order to comply with laws as provided in Section 8B above at its
sole cost and expense.

      13.   INDEMNIFICATION OF PARTIES. Each party will indemnify the other and
save it harmless from and against any and all claims, actions, damages,
liability and expense in connection with loss of life, personal injury and/or
damage to property arising from or out of the occupancy or use by the other of
the Demised Premises, the buildings or common areas or any part thereof, or
occasioned wholly or in part by any act or omission of the other, its agents,
employees, servant, lessees or concessionaires. In case a party (the
"Indemnitee") shall, without fault on its part, be made a party to any
litigation commenced by or against the other (the "Indemnitor") then the
Indemnitor shall protect and hold the Indemnitee harmless and shall pay all
costs, expenses and reasonable attorney's fees incurred or paid by the
Indemnitee in connection with such litigation.

      14.   INTENTIONALLY DELETED.

      15.   DESTRUCTION OF DEMISED PREMISES. If any portion of the
property/building in which an Office/Warehouse Location is located is damaged by
fire, the elements, accident or other casualty ("Casualty") and such
Office/Warehouse Location is rendered untenable in whole or in part and such
damage is not repairable or not repaired (including safe access to the
Office/Warehouse Location) within one hundred eighty (180) days after the date
of the Casualty, regardless of the reason for the delay, both Landlord and
Tenant shall have up to thirty (30) days from the date of the Casualty (or
thirty (30) days after the determination that such Office/Warehouse Location is
not repaired or repairable within such period, if later) to notify the other
party that it is exercising its option to terminate this Lease as to that
portion of Demised Premises consisting of the Office/Warehouse Location in
question. If this Lease is so terminated, the rent and all other charges payable
by the Tenant pursuant to this Lease shall be abated from the date of the
Casualty. If the Lease is not so terminated, Landlord shall promptly at its
expense cause such damage to be repaired (excluding Tenant's personal property,
trade fixtures and equipment), with a proportionate abatement of rent as

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to the portion of the Office/Warehouse Location rendered untenable (with an
abatement of the entire rent if there is no safe access to the Office/Warehouse
Location), from the date of such casualty until such Office/Warehouse Location
is again rendered tenantable and safe access is restored to the Office/Warehouse
Location in question.

      If the Casualty results from a cause not covered by Landlord's insurance
or if the proceeds of Landlord's insurance are insufficient to restore the
subject Office/Warehouse Location to its condition prior to the Casualty and/or
Landlord does not fully restore the Office/Warehouse Location to substantially
the same condition as prior to the Casualty, Tenant shall have up to thirty (30)
days from the date Tenant learns that Landlord will not restore said
Office/Warehouse Location to notify the Landlord that it is exercising its
option to terminate this Lease as to that portion of Demised Premises consisting
of the Office/Warehouse Location in question. If this option is exercised, the
rent payable by the Tenant pursuant to the Lease shall be abated from the date
of the notice. This right to partially terminate this Lease shall be in addition
to and not a substitution for, any other right provided in this Lease to
terminate all or a portion of this Lease as a result or by reason of the
Casualty itself.

      16.   EMINENT DOMAIN.

            A. FULL CONDEMNATION. If all of the property/building in which an
Office/Warehouse Location is located is condemned under the power of Eminent
Domain, this Lease shall terminate as to such Office/Warehouse Location on the
date title or possession vests in the condemning authority, whichever is first.

            B. PARTIAL CONDEMNATION. If part but not all of the
property/building in which an Office/Warehouse Location is located is subject to
Eminent Domain or condemnation proceedings, Landlord or Tenant shall have the
option to terminate this Lease as to such Office/Warehouse Location. Landlord or
Tenant shall have thirty (30) days from the date the party receives Notice of
the exercise of Eminent Domain or condemnation of any portion or all of the
property/building in which an Office/Warehouse Location is located to notify the
other that it is exercising its option to terminate this Lease as provided
above. If such Lease termination option is exercised, the rent shall abate from
the date title vests in the condemning authority.

            C. AWARD. In the event of any condemnation of all or part of the
property/building in which an Office/Warehouse Location is located, Tenant shall
not be entitled to share in any part of the condemnation award (including
consequential damages) for the taking of its leasehold estate or for its right
to use any of the common areas. Tenant shall, however, be entitled to retain any
separate award obtained from the condemning authority for moving expenses, loss
of trade fixtures, and the loss of business to the extent compensable without
diminution of Landlord's award.

                                       7
<PAGE>

      17.   DEFAULT OF TENANT.

            A. RIGHT TO RE-ENTER. In the event of any failure of Tenant to pay
any rental due hereunder within ten (10) days after receipt of written notice
that same has not been paid, or any failure to perform any other of the terms,
conditions or covenants of this Lease to be observed or performed by Tenant for
more than thirty (30) days after written notice of such default shall have been
received by Tenant, or if Tenant shall become bankrupt or insolvent, or take or
have taken against Tenant in any court pursuant to any statute either of the
United States or of any State a petition in bankruptcy or insolvency or for
reorganization or for the appointment of a receiver or trustee of all or a
portion of Tenant's property and Tenant shall have been adjudicated to be
bankrupt or insolvent, or if Tenant makes an assignment for the benefit of
creditors, or petitions for or enters into an arrangement, or if Tenant shall
abandon said premises, or suffer this Lease to be taken under any writ of
execution, then Landlord, in addition to other rights or remedies it may have,
shall have the immediate right of re-entry and may remove all persons and
property from the Demised Premises and such property may be removed and stored
in a public warehouse or elsewhere at the cost of and for the account of Tenant.

            B. RIGHT TO RELET. Should Landlord elect to re-enter, as herein
provided, or should it take possession pursuant to legal proceedings or pursuant
to any notice provided by law, it may either terminate this Lease or it may from
time to time without terminating this Lease, make such alterations and repairs
as may be necessary in order to relet the Demised Premises or any part thereof
for such term or terms (which may be for a term extending beyond the term of
this Lease) and at such rental or rentals and upon such other terms and
conditions as Landlord in its sole discretion may deem advisable; upon each such
reletting all rentals received by the Landlord from such reletting shall be
applied, first, to the payment of any indebtedness other than rent due hereunder
from Tenant to Landlord; second, to the payment of any costs and expenses of
such reletting, including reasonable brokerage fees and reasonable attorney's
fees and of costs of such alterations and repairs; third, to the payment of rent
due and unpaid hereunder, and the residue, if any, shall be held by Landlord and
applied in payment of future rent as the same may become due and payable
hereunder. If such rentals received from such reletting during any Lease Year
are less than that to be paid by Tenant hereunder during the same Lease Year,
Tenant shall pay any such deficiency to Landlord. Such deficiency shall be
calculated and paid monthly. No such re-entry or taking possession of said
premises by Landlord shall be construed as an election on its part to terminate
this Lease unless a written notice of such intention be given the Tenant or
unless the termination thereof be decreed by a court of competent jurisdiction.
Notwithstanding any such reletting without termination, Landlord may at any time
thereafter elect to terminate this Lease for such previous breach. Should
Landlord at any time terminate this Lease for any breach, in addition to any
other remedies it may have, it may recover from Tenant all damages it may incur
by reason of such breach, including the cost of recovering the Demised Premises,
and reasonable attorney's fees, all of which amounts shall be immediately due
and payable from Tenant to Landlord.

                                       8
<PAGE>

      18.   DEFAULT OF LANDLORD. If Landlord defaults in any of its obligations
hereunder, then Tenant, to the extent not otherwise recovered, shall be entitled
to recover its reasonable attorneys fees and court costs incurred by reason of
Landlord's default.

      19.   HOLDING OVER. Any holding over after the expiration of the Term or
any extension hereof, shall be construed to be a tenancy from month to month at
double the rents in effect immediately prior to such holding over (pro-rated on
a monthly basis) and shall otherwise be on the terms and conditions herein
specified so far as applicable.

      20.   WAIVER. The waiver by Landlord or Tenant of any breach of any term,
covenant or condition herein contained shall not be deemed to be a waiver of any
other term, covenant or condition or any subsequent breach of the same or any
other term, covenant or condition herein contained. The subsequent acceptance of
rent hereunder by Landlord or payment thereof by Tenant, shall not be deemed to
be a waiver of any preceding breach by the other of any term, covenant or
condition of this Lease, regardless of either's knowledge of such preceding
breach at the time of payment or acceptance of such rent. No breach of a
covenant, term or condition of this Lease shall be deemed to have been waived by
Landlord, or Tenant unless such waiver be in writing by the party who is claimed
to have waived the breach.

      21.   PARTIAL INVALIDITY. If any term or provision of this Lease or the
application thereof to any person, firm, corporation or circumstance, shall to
any extent be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provision to persons, firms or corporations and/or
circumstances other than those as to which it is invalid or unenforceable shall
not be affected thereby, and each term and provision of this Lease shall be
valid and be enforced to the fullest extent permitted by the law of the State in
which the Demised Premises are located.

      22.   RECORDING. This Lease shall not be recorded. If requested by
Landlord, a short form or memorandum of this Lease referring to this Lease,
including the names of the parties, the description of the Demised Premises, the
Term, and such other provisions hereof as Landlord and Tenant shall mutually
approve, shall be prepared at Landlord's expense, be executed by Landlord and
Tenant, and, if Landlord further requests, be recorded among the Land Records
for the County (or City, as appropriate) in which all or any portion of the
Demised Premises is located, provided that Landlord shall pay all expenses of
recording, including all transfer taxes and recordation taxes imposed upon the
recording of such short form or memorandum of lease.

      23.   BROKERAGE COMMISSION. Each party represents to the other that no
broker was instrumental in the consummation of this Lease shall defend,
indemnify, and save harmless the other from any claim for commissions or
brokerage fees made by any real estate firm, salesman, or broker asserting that
it dealt with the Landlord regarding this Lease.

      24.   ARBITRATION. Whenever any dispute arises relating to the provisions
of this Lease, the dispute shall be resolved by arbitration in the manner
hereinafter set forth. Either party may, by

                                       9
<PAGE>

written notice to the other, appoint an arbitrator. Thereupon, within fifteen
(15) days after the giving of the notice, the other party shall, by written
notice to the other party, appoint another arbitrator, and in default of such
second appointment the arbitrator first appointed shall appoint a second
arbitrator. When any two arbitrators have been appointed as aforesaid, they
shall agree upon a third arbitrator and appoint him by notice in writing, signed
by both of them in triplicate, one of which triplicate notices shall be given to
each party hereto. The three arbitrators then chosen shall arbitrate any such
dispute, and the decision of the majority of such arbitrators shall be
conclusive and binding upon the Landlord and upon the Tenant. The cost of the
arbitration shall be borne equally by the Landlord and the Tenant.

      25.   NOTICES. Every notice between the parties and any approval, consent
or other communication authorized or required by this Lease shall not be
effective unless such communication shall be in writing and sent postage prepaid
by United States registered or certified mail, return receipt requested, or by
overnight delivery service, or personally delivered with signed receipt,
directed to (1) if to Landlord, at 6711 Ritz Way, Beltsville, Maryland 20705,
Attn: Wade R. Mayberry with a copy to Carole McFee Mendez, and (2) if to Tenant,
2010 Main Street, Suite 400, Irvine, CA 92614, Attn: Fred Lerner. Each notice,
approval, consent or other communication shall be deemed to have been delivered
and received on the date of delivery postmarked on the return receipt or on the
date of the signed receipt, as the case may be; provided, however, that any
notice by mail properly addressed but refused by addressee shall be deemed to
have been delivered and received three (3) days after it is resent by first
class mail. Either party shall have the right to change its address specified
above by giving written notice to the other party in the manner specified
herein.

      26.   BENEFIT. This Lease and all of the covenants and provisions thereof
shall inure to the benefit of and be binding upon the heirs, legal
representatives, successors and assigns of the parties hereto.

      27.   REMEDIES. It is agreed that the mention of any specific right or
remedy to either party herein shall not be construed to deprive such party of
any right or remedy which such party might otherwise have.

      28.   COMPLETE AGREEMENT. This written Lease contains the complete
agreement of the parties with reference to the leasing of the Demised Premises.
This Lease shall not be subject to amendment except in writing signed by the
parties.

      29.   HEADINGS. All headings in the margin of this Lease or preceding the
text of the several paragraphs and subparagraphs are inserted solely for
convenience of reference and none of them shall constitute a part of this Lease
or affect its meaning, construction or effect.

      30.   TIME OF THE ESSENCE. Time is of the essence with respect to the
performance of the obligations of this Lease by the parties hereto.

                                       10
<PAGE>

      31.   ESTOPPEL CERTIFICATES. Tenant shall, at any time and from time to
time, on ten (10) days prior written notice by Landlord, execute, acknowledge
and deliver to Landlord a written statement certifying that this Lease continues
unmodified and in full force and effect (or if there have been modifications,
that this Lease continues in full force and effect as modified and stating the
modifications), and the dates to which annual rent have been paid, and stating
whether Landlord is in default in performing any covenant to this Lease, and,
should Landlord be in default, specifying each and every such default, it being
intended that any such statement delivered pursuant to this paragraph may be
relied on by Landlord or any prospective purchaser or mortgagee of the fee or
any assignee of any mortgagee of the fee of all or any portion of the Demised
Premises. Tenant hereby grants Landlord a limited power of attorney to execute
such statement in the name of Tenant if Tenant fails to furnish the same in
compliance with this paragraph.

      32.   ENTRY OF LANDLORD. Landlord may, without interference to Tenant's
use of the Demised Premises, enter the Demised Premises:

            A. To inspect or protect the Demised Premises;

            B. To effect compliance with any law, order or regulation of any
lawful authority;

            C. To make or supervise repairs, alterations or additions;

            D. To exhibit the Demised Premises to prospective tenants,
purchasers or other persons; and

            E. To alter or otherwise prepare the Demised Premises for
re-occupancy at any time after Tenant has vacated the Demised Premises. No
authorized entry by Landlord shall constitute an eviction of Tenant or a
deprivation of Tenant's rights, alter the obligation of Tenant, or create any
right to Tenant adverse to Landlord's interests hereunder.

      33.   HAZARDOUS SUBSTANCES. Tenant shall (a) not use, receive, sell,
treat, store, and/or dispose of any Hazardous Materials (as defined below) in,
on, above, under, about or at the Demised Premises or the common areas except
(i) in the ordinary course of Tenant's business, and (ii) in compliance with the
Environmental Laws, herein defined, provided, however, Tenant shall not in any
event use, receive, sell, treat, store or dispose of any Hazardous Materials
which would cause the market value of the Demised Premises to depreciate; (b)
not engage in any activity in, on, above, under, about or at the Demised
Premises that will result in any Hazardous Materials Contamination (as defined
below) to or from the Demised Premises or the common areas or would cause
depreciation in the market value of the Demised Premises; (c) immediately notify
Landlord upon learning that any of the above-described activities or events have
taken place, with a complete description thereof; (d) immediately notify
Landlord upon learning of any Hazardous Materials Contamination present in, on,
under, about or emanating from the Demised Premises; (e) comply with all laws
requiring the removal, treatment, remediation or disposal of any Hazardous
Materials or

                                       11
<PAGE>

any Hazardous Materials Contamination caused, in whole or in part, by Tenant
from and after the Commencement Date (or, if applicable, from the time Tenant
enters the Demised Premises), and provide Landlord with satisfactory evidence of
such compliance; (f) provide Landlord, within thirty (30) days after Tenant
gives the notice described in subparagraph (c) or (d) above, with a bond, letter
of credit or similar financial assurance (i) evidencing to Landlord's
satisfaction that the necessary funds are available to pay the cost of removing,
treating, remediating and disposing any Hazardous Materials or any Hazardous
Materials Contamination caused, in whole or in part, by Tenant (ii) discharging
any lien which may be established on the Demised Premises as a result thereof;
and (g) defend, indemnify and hold harmless Landlord and its mortgagee, if any,
from any and all claims which may be asserted as a result of the presence of any
Hazardous Materials or any Hazardous Materials Contamination on the Demised
Premises after the Commencement Date. The term "Hazardous Materials" means any
substance, material, waste or related material which is defined as or included
in the definition of "hazardous substances," "hazardous wastes," "infectious
wastes," "hazardous materials," or otherwise regulated now or subsequently,
under any federal, state or local law, regulation or ordinance (the
"Environmental Laws"). The term "Hazardous Materials Contamination" means the
contamination of buildings, equipment, facilities, soil, water, ground water or
air as a result of any Hazardous Materials at any time present at or emanating
from the Demised Premises.

      34.   LIENS. Tenant agrees that Tenant is solely liable for the payment of
all its leasehold improvements. Tenant further agrees that it will not permit
the lien of any contractor, subcontractor, mechanic, laborer, or materialman to
be and remain a lien upon all or any portion of the Demised Premises or upon the
right, title, or interest of Tenant created by this Lease, after the
indebtedness secured by such lien shall have become due, unless the same is in
the process of being actually contested in good faith on the part of Tenant.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       12
<PAGE>

The parties hereto have executed this Lease effective as of the date first above
written.

                              Ritz Camera Centers, Inc.,
                              a Delaware corporation

                              By: /s/ Wade R. Mayberry
                                  --------------------------
                              Name: Wade R. Mayberry
                              Title: President

                              Ritz Interactive, Inc.,
                              a Delaware corporation

                              By: /s/ Fred H. Lerner
                                  ---------------------------
                                  Fred H. Lerner, President

                                       13
<PAGE>

                                    EXHIBIT A

<TABLE>
<CAPTION>
         Location               Use     Square Footage  Annual Rate PSF*
---------------------------  ---------  --------------  ----------------
<S>                          <C>        <C>             <C>
       6711 Ritz Way           Office         572            $11.18
      Beltsville, MD

      1114 Park Lane         Warehouse        240            $ 5.60
        Denton, MD

  1401 NW Moundview Drive    Warehouse        240            $ 5.60
        Topeka, KS

2935 Shawnee Industrial Way  Warehouse        240            $ 5.60
     Shawnee, GA 30024
</TABLE>

* For Lease Year January 1, 2005 - December 31, 2005. Thereafter, to be adjusted
in accordance with the terms of Section 3B.

                                   Exhibit A-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]