Document:

Exhibit 10.1

 

 

STANDARD SUBLEASE

(Long-form to be used with pre-1996
AIR leases)

(NOTE: NOT DESIGNED FOR SITUATIONS WHERE
LESS THAN ENTIRE PREMISES ARE BEING SUBLET)

 

1.           Basic
Provisions ("Basic Provisions").

 

1.1         Parties:
This Sublease ("Sublease"), dated for reference purposes only December 20, 2012, is made by and between
Radiant Logistics, Inc. (Successor in Interest to Distribution by air, a  DBA Distribution Services Inc. Company
("Sublessor") and Space Exploration Technologies Corp., a Delaware Corporation ("Sublessee"),
(collectively the "Parties", or individually a "Party").

 

1.2         Premises: That
certain real property, including all improvements therein, and commonly known by the street address of 2701 & 2705 El
Segundo Blvd., Hawthorne located in the County of Los Angeles, State of California and generally
described as (describe briefly the nature of the property) a 140,200 square foot portion of a larger  Industrial
Building comprised of two 70,100 Square foot units. ("Premises").

 

1.3         Term: 3
years and __ months commencing February 1, 2013 on the 2705 bldg and March 1 on 2701 bldg
("Commencement Date") and ending February 29, 2016 ("Expiration Date").

 

1.4         Early
Possession: If the Premises are available Sublessee may have non-exclusive possession of the Premises commencing Appx January
10, 2013 or the earliest possible date. ("Early Possession Date").

 

1.5         Base
Rent: $75,007.00 per month ("Base Rent"), payable on the First day of each month commencing
January 1, 2013 (see Addendum for rent schedule).

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

 

1.6         Base
Rent and Other Monies Paid Upon Execution:

 

(a)           Base
Rent: $75,007.00 for the period from May 1, 2013 through May 31, 2013.

 

(b)           Security
Deposit: $80,615.00 ("Security Deposit").

 

(c)           Association
Fees: $NA for the period NA.

 

(d)           Other:
$                                     for
                                      .

 

(e)           Total
Due Upon Execution of this Lease: $155,622.00.

 

1.7         Agreed
Use: The Premises shall be used and occupied only for General office, manufacturing,  warehousing, air freight and
related legal uses. and for no other purposes.

 

1.8         Real
Estate Brokers:

 

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

0 The Saywitz Company represents
Sublessor exclusively ("Sublessor's Broker");

0 Fischer & Company represents
Sublessee exclusively ("Sublessee's Broker"); or D             represents
both Sublessor and Sublessee ("Dual Agency").

 

(b)           Payment
to Brokers: Upon execution and delivery of this Sublease by both Parties, Sublessor shall pay to the Brokers for the brokerage
services rendered by the Brokers the fee agreed to in the attached separate written agreement or if no such agreement
is attached, the sum of         or         %
of the total Base Rent payable for the original term of the Sublease, the sum of           or         of
the total Base Rent payable during any period of time that the Sublessee occupies the Premises subsequent to the original
term of the Sublease, and/or the sum of         or         %
of the purchase price in the event that the Sublessee or anyone affiliated with Sublessee acquires from the owner
of the Premises any rights to the Premises.

 

1.9         Guarantor.
The obligations of the Sublessee under this Sublease shall be guaranteed by ___________________________________________________________________________________________________________________________________________

__________________  (”Guarantor“).

 

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

0 an
Addendum consisting of Paragraphs 13through         ;

D a
plot plan depicting the Premises;

D a
Work Letter;

0 a
copy of the master lease and any and all amendments to such lease (collectively the "Master Lease");

	D other (specify):	 
	 
	.

 

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2.            Premises.

 

2.1         Letting.
Sublessor hereby subleases to Sublessee, and Sublessee hereby subleases from Sublessor, the Premises, for the term, at the
rental, and upon all of the terms, covenants and conditions set forth in this Sublease. While the approximate square footage of
the Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT
tied to square footage and is not subject to adjustment should the actual size be determined to be different. Note: Sublessee
is advised to verify the actual size prior to executing this Sublease.

 

2.2         Condition.
Sublessor shall deliver the Premises to Sublessee broom clean and free of debris on the Commencement Date or the Early Possession
Date, whichever first occurs (”Start Date“), and warrants that the existing electrical, plumbing, fire sprinkler,
lighting, heating, ventilating and air conditioning systems (”HVAC“), and any items which the Sublessor is
obligated to construct pursuant to the Work Letter attached hereto, if any, other than those constructed by Sublessee, shall be
in good operating condition on said date. If a non-compliance with such warranty exists as of the Start Date, or if one of such
systems or elements should malfunction or fail within the appropriate warranty period, Sublessor shall, as Sublessor's sole obligation
with respect to such matter, except as otherwise provided in this Sublease, promptly after receipt of written notice from Sublessee
setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Sublessor's
expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems
and other elements. If Sublessee does not give Sublessor the required notice within the appropriate warranty period, correction
of any such non-compliance, malfunction or failure shall be the obligation of Sublessee at Sublessee's sole cost and expense

 

2.3         Compliance.
Sublessor warrants that to the best of its actual knowledge, any improvements, alterations or utility installations made
or installed by or on behalf of Sublessor to or on the Premises comply with all applicable covenants or restrictions of record
and applicable building codes, regulations and ordinances (”Applicable Requirements“) in effect on the date
that they were made or installed. Sublessor makes no warranty as to the use to which Sublessee will put the Premises or to modifications
which may be required by the Americans with Disabilities Act or any similar laws as a result of Sublessee's use. NOTE: Sublessee
is responsible for determining whether or not the zoning and other Applicable Requirements are appropriate for Sublessee's intended
use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty,
Sublessor shall, except as otherwise provided, promptly after receipt of written notice from Sublessee setting forth with specificity
the nature and extent of such non-compliance, rectify the same. If the Applicable Requirements are hereafter changed so as to
require during the term of this Sublease the construction of an addition to or an alteration of the Building, the remediation
of any Hazardous Substance, or the reinforcement or other physical modification of the Building (”Capital Expenditure“),
Sublessor and Sublessee shall allocate the cost of such work as follows:

 

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

 

(b)           If
such Capital Expenditure is not the result of the specific and unique use of the Premises by Sublessee (such as governmentally
mandated seismic modifications, then Sublessor shall pay for said Capital Expenditure .and the cost thereof shall
be prorated between the Sublessor and Sublessee and Sublessee shall only be obligated to pay, each month during the remainder
of the term of this Sublease or any extension therof, on the date on which Rent is due, an amount equal to 1/144th the cost
of such Capital Expenditure. Sublessee shall pay interest on the unamortized balance at a rate that is then commercially
reasonable in the judgment of Sublessor's accountant. Sublessee may, however, prepay its obligation at any time.
Provided, however, that if such Capital Expenditure is required during the last 2 years of this Sublease or if
Sublessor reasonably determines that it is not economically feasible to pay its share thereof, Sublessor shall
have the option to terminate this Sublease upon 90 days prior written notice to Sublessee unless Sublessee notifies
Sublessor, in writing, within 10 days after receipt of Sublessor's termination notice that Sublessee will pay
for such Capital Expenditure. If Sublessor does not elect to terminate, and fails to tender its share of any such Capital
Expenditure, Sublessee may advance such funds and deduct same, with interest, from Rent until Sublessor's share of such
costs have been fully paid. If Sublessee is unable to finance Sublessor's share, or if the balance of the Rent due and
payable for the remainder of this Sublease is not sufficient to fully reimburse Sublessee on an offset basis,
Sublessee shall have the right to terminate this Sublease upon 10 days written notice to Sublessor.

 

(c)           Notwithstanding
the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected, and new Applicable
Requirements. If the Capital Expenditures are instead triggered by Sublessee as a result of an actual or proposed change in use,
change in intensity of use, or modification to the Premises then, and in that event, Sublessee shall be fully responsible for
the cost thereof, and Sublessee shall not have any right to terminate this Sublease.

 

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2.4           Acknowledgements.
Sublessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises, (b) it has been advised
by Sublessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including but not limited
to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements
and the Americans with Disabilities Act), and their suitability for Sublessee's intended use, (c) Sublessee has made such investigation
as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy
of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or Sublessor, (e)
the square footage of the Premises was not material to Sublessee's decision to sublease the Premises and pay the Rent stated herein,
and (f) neither Sublessor, Sublessor's agents, nor Brokers have made any oral or written representations or warranties with respect
to said matters other than as set forth in this Sublease. In addition, Sublessor acknowledges that: (i) Brokers have made no representations,
promises or warranties concerning Sublessee's ability to honor the Sublease or suitability to occupy the Premises, and (ii) it
is Sublessor's sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

 

2.5           Americans
with Disabilities Act. In the event that as a result of Sublessee's specific and unique use, or intended use, of the Premises
the Americans with Disabilities Act or any similar law requires modifications or the construction or installation of improvements
in or to the Premises, Building, Project and/or Common Areas, the Parties agree that such modifications, construction or improvements
shall be made at: D Sublessor's expense 0 Sublessee's expense.

 

3.           Possession.

 

3.1           Early
Possession. Any provision herein granting Sublessee Early Possession of the Premises is subject to and conditioned upon the
Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys a non-exclusive
right to occupy the Premises. If Sublessee totally or partially occupies the Premises prior to the Commencement Date, the obligation
to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Sublease (including
but not limited to the obligations to pay Sublessee's Share of Common Area Operating Expenses, Real Property Taxes
and insurance premiums and to maintain the Premises) shall, however, be in effect during such period. Any such Early
Possession shall not affect the Expiration Date.

 

3.2           Delay
in Commencement. Sublessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises by
the Commencement Date. If, despite said efforts, Sublessor is unable to deliver possession as agreed, Sublessor shall not be subject
to any liability therefor, nor shall such failure affect the validity of this Sublease. Sublessee shall not, however, be obligated
to pay Rent or perform its other obligations until it receives possession of the Premises. If possession is not delivered within
60 30 days after the Commencement Date, Sublessee may, at its option, by notice in writing within 10 days after
the end of such 60 30 day period, cancel this Sublease, in which event the Parties shall be discharged from all
obligations hereunder. If such written notice is not received by Sublessor within said 10 day period, Sublessee's right to cancel
shall terminate. Except as otherwise provided, if possession is not tendered to Sublessee when required and Sublessee does not
terminate this Sublease, as aforesaid, any period of rent abatement that Sublessee would otherwise have enjoyed shall run from
the date of delivery of possession and continue for a period equal to what Sublessee would otherwise have enjoyed under the terms
hereof, but minus any days of delay caused by the acts or omissions of Sublessee. If possession is not delivered within 120 days
after the Commencement Date, this Sublease shall automatically terminate unless the Parties agree, in writing, to the contrary.

 

3.3           Sublessee
Compliance. Sublessor shall not be required to tender possession of the Premises to Sublessee until Sublessee complies with
its obligation to provide evidence of insurance. Pending delivery of such evidence, Sublessee shall be required to perform all
of its obligations under this Sublease from and after the Start Date, including the payment of Rent, notwithstanding Sublessor's
election to withhold possession pending receipt of such evidence of insurance. Further, if Sublessee is required to perform any
other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Sublessor may elect to withhold possession
until such conditions are satisfied.

 

4.           Rent
and Other Charges.

 

4.1           Rent
Defined. All monetary obligations of Sublessee to Sublessor under the terms of this Sublease (except for the Security Deposit)
are deemed to be rent ("Rent"). Rent shall be payable in lawful money of the United States to Sublessor at the
address stated herein or to such other persons or at such other places as Sublessor may designate in writing.

 

4.2           Utilities.
Sublessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied
to the Premises, together with any taxes thereon.

 

5.           Security
Deposit. Sublessee shall deposit with Sublessor the sum specified in Paragraph 1.6(b) as security for Sublessee's faithful
performance of Sublessee's obligations hereunder. If Sublessee fails to pay Rent or other charges due hereunder, or otherwise
defaults with respect to any provision of this Sublease, Sublessor may use, apply or retain all or any portion of said deposit
for the payment of any Rent or other charge in default or for the payment of any other sum to which Sublessor may become obligated
by reason of Sublessee's default, or to compensate Sublessor for any loss or damage which Sublessor may suffer thereby. If Sublessor
so uses or applies all or any, portion of said deposit, Sublessee shall within 10 days after written demand therefore forward
to Sublessor an amount sufficient to restore said Deposit to the full amount provided for herein and Sublessee's failure to do
so shall be a material breach of this Sublease. Sublessor shall not be required to keep said Deposit separate from its general
accounts. If Sublessee performs all of Sublessee's obligations hereunder, said Deposit, or so much thereof as has not therefore
been applied by Sublessor, shall be returned, without payment of interest to Sublessee (or at Sublessor's option, to the last
assignee, if any, of Sublessee's interest hereunder) at the expiration of the term hereof, and after Sublessee has vacated the
Premises. No trust relationship is created herein between Sublessor and Sublessee with respect to said Security Deposit.

 

6.           Master
Lease.

 

6.1           Sublessor
is the lessee of the Premises by virtue of the Master Lease , wherein Jonda Hawthorne, LP is the lessor, hereinafter
the "Master Lessor".

 

6.2           This
Sublease is and shall be at all times subject and subordinate to the Master Lease.

 

6.3           The
terms, conditions and respective obligations of Sublessor and Sublessee to each other under this Sublease shall be the terms and
conditions of the Master Lease except for those provisions of the Master Lease which are directly contradicted by this Sublease
in which event the terms of this Sublease document shall control over the Master Lease. Therefore, for the purposes of this Sublease,
wherever in the Master Lease the word ”Lessor“ is used it shall be deemed to mean the Sublessor herein and wherever
in the Master Lease the word ”Lessee“ is used it shall be deemed to mean the Sublessee herein.

 

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6.4           During
the term of this Sublease and for all periods subsequent for obligations which have arisen prior to the termination of this Sublease,
Sublessee does hereby expressly assume and agree to perform and comply with, for the benefit of Sublessor and Master Lessor, each
and every obligation of Sublessor under the Master Lease except for the following paragraphs which are excluded therefrom: Section
4 as defined. Refer to the Addendum for details of the rent.

	.

 

6.5           The
obligations that Sublessee has assumed under paragraph 6.4 hereof are hereinafter referred to as the "Sublessee's Assumed
Obligations". The obligations that sublessee has not assumed under paragraph 6.4 hereof are hereinafter referred to as
the "Sublessor's Remaining Obligations".

 

6.6           Sublessee
shall hold Sublessor free and harmless from all liability, judgments, costs, damages, claims or demands, including reasonable
attorneys fees, arising out of Sublessee's failure to comply with or perform Sublessee's Assumed Obligations.

 

6.7           Sublessor
agrees to maintain the Master Lease during the entire term of this Sublease, subject, however, to any earlier termination of the
Master Lease without the fault of the Sublessor, and to comply with or perform Sublessor's Remaining Obligations and to hold Sublessee
free and harmless from all liability, judgments, costs, damages, claims or demands arising out of Sublessor's failure to comply
with or perform Sublessor's Remaining Obligations.

 

6.8           Sublessor
represents to Sublessee that the Master Lease is in full force and effect and that no default exists on the part of any Party
to the Master Lease.

 

7.           Assignment
of Sublease and Default.

 

7.1           Sublessor
hereby assigns and transfers to Master Lessor Sublessor's interest in this Sublease, subject however to the provisions of Paragraph
8.2 hereof.

 

7.2           Master
Lessor, by executing this document, agrees that until a Default shall occur in the performance of Sublessor's Obligations under
the Master Lease, that Sublessor may receive, collect and enjoy the Rent accruing under this Sublease. However, if Sublessor shall
Default in the performance of its obligations to Master Lessor then Master Lessor may, at its option, receive and collect, directly
from Sublessee, all Rent owing and to be owed under this Sublease. In the event, however, that the amount collected by Master
Lessor exceeds Sublessor's obligations any such excess shall be refunded to Sublessor. Master Lessor shall not, by reason of this
assignment of the Sublease nor by reason of the collection of the Rent from the Sublessee, be deemed liable to Sublessee for any
failure of the Sublessor to perform and comply with Sublessor's Remaining Obligations.

 

7.3           Sublessor
hereby irrevocably authorizes and directs Sublessee upon receipt of any written notice from the Master Lessor stating that a Default
exists in the performance of Sublessor's obligations under the Master Lease, to pay to Master Lessor the Rent due and to become
due under the Sublease. Sublessor agrees that Sublessee shall have the right to rely upon any such statement and request from
Master Lessor, and that Sublessee shall pay such Rent to Master Lessor without any obligation or right to inquire as to whether
such Default exists and notwithstanding any notice from or claim from Sublessor to the contrary and Sublessor shall have no right
or claim against Sublessee for any such Rent so paid by Sublessee.

 

7.4           No
changes or modifications shall be made to this Sublease without the consent of Master Lessor.

 

8.           Consent
of Master Lessor.

 

8.1           In
the event that the Master Lease requires that Sublessor obtain the consent of Master Lessor to any subletting by Sublessor then,
this Sublease shall not be effective unless, within 10 days of the date hereof, Master Lessor signs this Sublease thereby giving
its consent to this Subletting.

 

8.2           In
the event that the obligations of the Sublessor under the Master Lease have been guaranteed by third parties, then neither this
Sublease, nor the Master Lessor's consent, shall be effective unless, within 10 days of the date hereof, said guarantors sign
this Sublease thereby giving their consent to this Sublease.

 

8.3           In
the event that Master Lessor does give such consent then:

 

(a)           Such
consent shall not release Sublessor of its obligations or alter the primary liability of Sublessor to pay the Rent and perform
and comply with all of the obligations of Sublessor to be performed under the Master Lease.

 

(b)           The
acceptance of Rent by Master Lessor from Sublessee or any one else liable under the Master Lease shall not be deemed a waiver
by Master Lessor of any provisions of the Master Lease.

 

(c)           The
consent to this Sublease shall not constitute a consent to any subsequent subletting or assignment.

 

(d)           In
the event of any Default of Sublessor under the Master Lease, Master Lessor may proceed directly against Sublessor, any guarantors
or any one else liable under the Master Lease or this Sublease without first exhausting Master Lessor's remedies against any other
person or entity liable thereon to Master Lessor.

 

(e)           Master
Lessor may consent to subsequent sublettings and assignments of the Master Lease or this Sublease or any amendments or modifications
thereto without notifying Sublessor or any one else liable under the Master Lease and without obtaining their consent and such
action shall not relieve such persons from liability.

 

(f)           In
the event that Sublessor shall Default in its obligations under the Master Lease, then Master Lessor, at its option and without
being obligated to do so, may require Sublessee to attorn to Master Lessor in which event Master Lessor shall undertake the obligations
of Sublessor under this Sublease from the time of the exercise of said option to termination of this Sublease but Master Lessor
shall not be liable for any prepaid Rent nor any Security Deposit paid by Sublessee, nor shall Master Lessor be liable for any
other Defaults of the Sublessor under the Sublease.

 

(g)           Unless
directly contradicted by other provisions of this Sublease, the consent of Master Lessor to this Sublease shall not constitute
an agreement to allow Sublessee to exercise any options which may have been granted to Sublessor in the Master Lease (see Paragraph
39.2 of the Master Lease).

 

8.4           The
signatures of the Master Lessor and any Guarantors of Sublessor at the end of this document shall constitute their consent to
the terms of this Sublease.

 

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8.5         Master
Lessor acknowledges that, to the best of Master Lessor's knowledge, no Default presently exists under the Master Lease of obligations
to be performed by Sublessor and that the Master Lease is in full force and effect.

 

8.6         In
the event that Sublessor Defaults under its obligations to be performed under the Master Lease by Sublessor, Master Lessor agrees
to deliver to Sublessee a copy of any such notice of default. Sublessee shall have the right to cure any Default of Sublessor
described in any notice of default within ten days after service of such notice of default on Sublessee. If such Default is cured
by Sublessee then Sublessee shall have the right of reimbursement and offset from and against Sublessor.

 

9.         Additional
Brokers Commissions.

 

           9.1           Sublessor
agrees that if Sublessee exercises any option or right of first refusal as granted by Sublessor herein, or any
option or right substantially similar thereto, either to extend the term of this Sublease, to renew this Sublease, to purchase
the Premises, or to lease or purchase adjacent property which Sublessor may own or in which Sublessor has an
interest, then Sublessor shall pay to Broker a fee in accordance with the schedule of Broker in effect at the
time of the execution of this Sublease. Notwithstanding the foregoing, Sublessor's obligation under this Paragraph is limited
to a transaction in which Sublessor is acting as a Sublessor, lessor or seller.

 

           9.2           If
a separate brokerage fee agreement is attached then Master Lessor agrees that if Sublessee shall exercise any option
or right of first refusal granted to Sublessee by Master Lessor in connection with this Sublease, or any option or right
substantially similar thereto, either to extend or renew the Master Lease, to purchase the Premises or any part thereof,
or to lease or purchase adjacent property which Master Lessor may own or in which Master Lessor has an interest,
or if Broker is the procuring cause of any other lease or sale entered into between Sublessee and Master Lessor
pertaining to the Premises, any part thereof, or any adjacent property which Master Lessor owns or in which it
has an interest, then as to any of said transactions, Master Lessor shall pay to Broker a fee, in cash, in accordance
with the schedule attached to such brokerage fee agreement.

 

           9.3           Any
fee due from Sublessor or Master Lessor hereunder shall be due and payable upon the exercise of any option to extend
or renew, upon the execution of any new lease, or, in the event of a purchase, at the close of escrow.

 

           9.4           Any
transferee of Sublessor's interest in this Sublease, or of Master Lessor's interest in the Master Lease, by accepting
an assignment thereof, shall be deemed to have assumed the respective obligations of Sublessor or Master Lessor under
this Paragraph 9. Broker shall be deemed to be a third-party beneficiary of this paragraph 9.

 

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

 

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

 

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

 

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

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

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

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

 

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	INITIA	INITIALS
	 	 
	©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	FORM SBL-5-1/10E

 

    	 

    	 

    

 

	Executed at:	Bellvue, Washington	 	Executed at:	Hawthorne, CA

 

	On:	 	 	On:	December 24, 2012

 

	By Sublessor: 	 	By Sublessee: 
	 	 	 
	 	 	/s/ Bret Johnsen
	 	 	 
	 	 	CFO

 

	By: 	/s/Bohn H. Crain

	 	By: 	 

 

	Name Printed:	Bohn H. Crain	 	Name Printed:	 

 

	Title: 	CEO	 	Title: 	 

 

	By:	

	 	By: 	 

 

	Name Printed:		 	Name Printed:	 

 

	Title: 		 	Title: 	 

 

	Address: 	 	 	Address:	 
	 	 	 	 	 

 

	Telephone: (____)	 	 	Telephone: (____)	 

 

	Facsimile: (____)	 	 	Facsimile:(____)	 

 

	Email: 	 	 	Email:	 
	 	 	 	 	 
	Email: 	 	 	Email:	 

 

	Federal ID No. 	 	 	Federal ID No. 	 

 

	BROKER:	 	BROKER:
	 	 	 
	 	 	 

 

	Attn:	 	 	Attn:	 

 

	Title: 		 	Title: 	 

 

	Address: 	 	 	Address:	 
	 	 	 	 	 

 

	Telephone/facsimile:	 	 	Telephone/Facsimile:	 

 

	Email: 	 	 	Email:	 

 

	Federal ID No. 	 	 	Federal ID No. 	 

 

	Broker/Agent DRE License #:	 	 	Broker/Agent DRE License #:	 
	 	 	 	 	 

Consent to the above Sublease is hereby given.

 

	Executed at:	 	 	Executed at:	 

 

	On:	 	 	On:	 

 

	By Master Lessor:	 	By Guarantor(s):
	 	 	 
	/s/ Aliza K. Guren 	 	 

 

			 	Name Printed:	 

 

	  	 	 	Address:	 
	 	 	 	 	 

	By:	

	 	 	 

 

	Name Printed		 	 	 
	Aliza K. Guren	 	 	 

 

	Title: 	CEO	 	 	 

 

	By:	

	 	By: 	 

 

	Name Printed:		 	Name Printed:	 

 

	Title: 		 	Address: 	 

 

	Address: 	 	 	 	 
	 	 	 	 	 

 

	Telephone: (____)	 	 	 	 

 

	Facsimile: (____)	 	 	 	 

 

	Email: 	 	 	 	 
	 	 	 	 	 

 

	Federal ID No. 	 	 		 

 

NOTICE: These forms are often modified to meet
changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR
Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213) 687-8777. Fax No.:
(213) 687-8616.

 

©Copyright 1997 By AIR
Commercial Real Estate Association.

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

 

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	INITIA	INITIALS
	 	 
	©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	FORM SBL-5-1/10E

  

    	 

    	 

    

 

ADDENDUM TO STANDARD SUBLEASE

 

THIS ADDENDUM TO STANDARD
SUBLEASE (this “Addendum”) dated this 21st day of December, 2012 (the “Effective Date”) hereby
amends and modifies that certain STANDARD SUBLEASE dated December 20, 2012 (the “Sublease Agreement”), by and between
RADIANT LOGISTICS, INC., a Delaware Corporation, as successor in interest to DBA Distribution Services, Inc. (“Sublessor”)
and SPACE EXPLORATION TECHNOLOGIES CORP., a Delaware Corporation (“Sublessee”).

 

1.           The
parties hereby amend the Sublease Agreement in accordance with the following. In the event of any conflict or ambiguity between
the terms of this Addendum and the Sublease Agreement, the terms of this Addendum shall control.

 

2.           All
capitalized terms set forth herein that are not otherwise defined by this Addendum shall have the same meaning ascribed to them
in Sublease Agreement.

 

3.           The
rent due under this Sublease shall be on an “industrial gross lease basis” whereby the Sublessee’s Rent shall
include all operating expenses attributable to the premises inclusive of Property Taxes, Insurance and maintenance (except as provided
in Paragraph 4 of this Addendum). The monthly rental rate shall be pursuant to the following schedule:

 

		·	February 1, 2013 to April 30, 2013: $0.00;

		·	May 1, 2013 to April 30, 2014: $75,007.00 per month;

		·	May 1, 2014 to April 30, 2015: $77, 811.00 per month; and

		·	May 1, 2015 to February 29, 2016: $80,615.00 per month.

 

Sublessee shall make payments of the above
amounts directly to Master Lessor, it being understood and agreed that Master Lessor's acceptance of such amounts shall not be
deemed to be the agreement by Master Lessor that such payments are in full satisfaction of amounts due under the Master Lease,
or that Master Lessor has agreed to any reduction of amounts due under the Master Lease from Sublessor. Sublessor separately shall
make payment to Master Lessor for the balance of any amounts due under the Master Lease over and above the amount of Sublessee’s
Rent as set forth in the Paragraph.

 

4.           Sublessor
and Sublessee hereby further agree and acknowledge Sublessee shall be responsible for the maintenance and repair of the HVAC to
the extent any such maintenance and repair are not within the scope of the warranty provided in Section 2.2 of the Sublease.

 

5.           Intentionally
Deleted.

 

6.           Subject
to Sublessee obtaining formal consent pursuant to the consent process specified in Paragraph 7.3(b) of the Master Lease as required,
Sublessor and Master Lessor provide their consent for Sublessee’s planned improvements as outlined below, it being understood
that Master Lessor's consent is conditioned on Sublessee submitting written plans and specifications to be prepared by Sublessee
and submitted to Master Lessor for Master Lessor’s written consent in accordance with and subject to the provisions of Paragraph
7.3(b) of the Master Lease, and it being further understood that Master Lessor, as a condition to giving consent, may require the
removal of such improvements upon surrender of the Premises to Master Lessor, and further provided that all such improvements must
be performed in accordance with all Applicable Requirements and after obtaining all necessary permits:

 

		·	new 20’ x 20’opening between 2701 El Segundo and 2705 El Segundo;

		·	the installation of a 2,000 amp dedicated electrical service panel and distribution;

		·	an office remodel;

		·	installation of dock treatments;

		·	upgrades to gated fences around the exterior of the parking lot;

		·	cranes/craneway – custom designed to carry parts along dedicated production line;

		·	floor surface – treatment/resurfacing/leveling as needed;

		·	climate control – to accommodate composite processing / winding;

		·	pressure test room (for pressurized tank tests), which might need to be built underground in the
parking lot; alternatively we could build an above grade facility where 20'x20'x15' interior dimension would be the minimum;

		·	additional internal rooms - additional rooms will need to be built inside the facility - drywall
work, electrical;

		·	LN2 storage and plumbing – Special handling, storage requirements;

		·	N2, Air, He storage and lines;

 

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	INITIA	INITIALS
	 	 
	©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	FORM SBL-5-1/10E

 

    	 

    	 

    

 

		·	cryogenic test - attached but external building extensions for LN2 and pumps; this would require
knocking holes up to 10'x10' in two locations and building small external add-ons; and

		·	Mezzanine(s) – possible need for one or two, which would require footers, concrete, new structure,
etc.

 

Sublessor and Sublessee
acknowledge and agree that Master Lessor has made no warranty, express or implied, that the Premises are suitable for the foregoing
improvements, or that such improvements may be made under Applicable Requirements.

 

7.           Sublessor
shall remain responsible for its surrender and restoration obligations under the Master Leases. Sublessor, and Sublessee understand
that the surrender and restoration obligations generally consist of the following (but may include additional requirements as determined
by an inspection of the Premises by Master Lessor):

 

		·	Dock Doors—all have to be in good working condition;

		·	Dock Levelers and bumpers need repair;

		·	All damage to the walls on the dock;

		·	Damaged yard bollards need to be replaced;

		·	All damaged electrical outlets inside and outside need to be fixed;

		·	Any non-working lights need to be replaced; and

		·	Fence needs to be repaired.

 

In the event that the Sublessor elects
not to perform any of the above mentioned items, Sublessor will reimburse Sublessee for actual costs to remedy any outstanding
items subject to the mutual agreement of the Parties.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Addendum as of the date first written above.

 

	 	 Sublessor:	RADIANT LOGISTICS, INC., a
	 	 	Delaware Corporation

 

	 	By:	/s/ Bohn H. Crain	 
	 	Name:	Bohn H. Crain	 
	 	Title:	CEO	 

 

	 	Sublessee:	SPACE EXPLORATION TECHNOLOGIES CORP., a
	 	 	Delaware Corporation

 

	 	By:	/s/ Bret Johnsen	 
	 	Name:	Bret Johnsen	 
	 	Title:	CFO	 

 

	 	Master Lessor:	JONDA HAWTHORNE, LP, a
	 	 	California Limited Partnership
	 	 	By its general partner:
	 	 	  Jondahaw GP, LLC,
	 	 	  a California limited liability company, 

	 	 	By its manager:
	 	 	Karney Management Company,
	 	 	a California Corporation,
	 	 	 
	 	 	By:	/s/ Aliza K. Guren
	 	 	 	Aliza K. Guren, President

 

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	INITIA	INITIALS
	 	 
	©1997 - AIR COMMERCIAL REAL ESTATE ASSOCIATION	FORM SBL-5-1/10EExhibit 10.2

 

STANDARD
INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - NET

AIR COMMERCIAL REAL ESTATE ASSOCIATION

 

		1.	Basic Provisions (“Basic Provisions”).

 

1.1             
Parties: This Lease (“Lease”), dated for reference purposes only February 25, 2008, is made by
and between JONDA HAWTHORNE, LLC, a California Limited Liability Company (“Lessor”) and DISTRIBUTION BY AIR, a DBA
DISTRIBUTIONS SERVICES, INC., a New Jersey Corporation (“Lessee”), (collectively the “Parties”, or individually
a “Party”).

 

1.2             
(a)Premises: That certain portion of the Project (as defined below), including all improvements therein
or to be provided by Lessor under the terms of this Lease, commonly known by the street address of 2705 W. El Sequndo Blvd., located
in the City of Hawthorne, County of Los Angeles, State of California, with zip code 90250, as outlined on Exhibit A attached hereto
(“Premises”) and generally described as (describe briefly the nature of the Premises): an approximately 70,100 square
foot industrial building that is the southwest portion of a larger building. In addition to Lessee’s rights to use and occupy
the Premises as hereinafter specified, Lessee shall have non-exclusive rights to the any utility raceways of the building containing
the Premises (“Building”) and to common Areas (as defined in Paragraph 2.7 below), but shall not have any rights
to the roof or exterior walls of the Building or to any other buildings in the Project. The Premises, the Building, the Common
Areas, the land upon which they are located, along with all other buildings and improvements thereon, are herein collectively referred
to as the “Project.” (See also Paragraph 2)

 

(b)              
Parking: 70 unreserved vehicle parking spaces (See also Paragraph 2.6)

 

1.3             
Term: Five (5) years (“Original Term”) commencing March 1, 2008 (“Commencement Date”)
and ending February 28, 2013 (“Expiration Date”). (See also Paragraph 3)

 

1.4             
Early Possession: February 4, 2008 (“Early Possession Date”). (See also Paragraphs 3.2 and 3.3)

 

1.5             
Base Rent: $36,802.50 per month (“Base Rent”), payable on the first day of each month commencing
March 2008. (See also Paragraph 4)

 

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

 

1.6             
Lessee’s Share of Common Area Operating Expenses: 28.7% (“Lessee’s Share”). Lessee’s
Share has been calculated by dividing the approximate square footage of the Premises by the approximate square footage of the Project.
In the event that the size of the Premises and/or the Project are modified during the term of this Lease, Lessor shall recalculate
Lessee’s Share to reflect such modification.

 

1.7             
Base Rent and Other Monies Paid Upon Execution:

 

(a)               
Base Rent: $36,802.50 for the period March 1, 2008.

 

    	Page 1 of 39

    	 

    
  

(b)              
Common Area Operating Expenses: $882.83 for the period Marrch 2008.

 

(c)               
Security Deposit: $36,802.50 (“Security Deposit”). (See also Paragraph 5)

 

(d)              
Other: $00,99 for N/A.

 

(e)               
Total Due Upon Execution of this Lease: $74,487.83.

 

1.8             
Agreed Use: office, warehousing, fulfillment and light assembly.

 

1.9             
Insuring Party. Lessor is the “Insuring Party”. (See also Paragraph 8)

 

1.10         
Real Estate Brokers: (See also Paragraph 15)

 

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

 

		 ̈	_________________________________________

 

		 ̈	_________________________________________

 

		ý	The Klabin Company – Harvey Beesen and Luke Staubitz
represents both Lessor and Lessee (“Dual Agency”).

 

(b)              
Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Brokers
the brokerage fee agreed to in a separate written agreement.

 

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

 

 ̈ an Addendum consisting of Paragraphs 52
through 61;

 

 ̈ a site plan depicting the Premises;

 

 ̈ a current set of the Rules and Regulations
for the Project;

 

 ̈ a current set of the Rules and Regulations
adopted by the owners’ association;

 

  

		2.	Premises.

 

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

 

    	Page 2 of 39

    	 

    
 

 

2.2             
Condition. Lessor shall deliver that portion of the Premises contained within the Building (“Unit”)
to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs (“Start
Date”), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in
effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting,
heating, ventilating and air conditioning systems (“HVAC”), loading doors, if any, and all other such elements in the
Unit, other than those constructed by Lessee, shall be in good operating condition on said date and that the structural elements
of the roof, bearing walls and foundation of the Unit shall be free of material defects. If a non-compliance with such warranty
exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period,
Lessor shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly
after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction
or failure, rectify same at Lessor’s expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems,
and (ii) 30 days as to the remaining systems and other elements of the Unit. If Lessee does not give Lessor the required notice
within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of
Lessee at Lessee’s sole cost and expense (except for the repairs to the fire sprinkler systems, roof, foundations, and/or
bearing walls - see Paragraph 7).

 

2.3             
Compliance. Lessor warrants that to the best of its knowledge the improvements on the Premises and the Common
Areas comply with the building codes that were in effect at the time that each such improvement, or portion thereof, was constructed,
and also with all applicable laws, covenants or restrictions of record, regulations, and ordinances in effect on the Start Date
(“Applicable Requirements”). Said warranty does not apply to the use to which Lessee will put the Premises or to any
Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible
for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee’s intended
use, and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty,
Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with specificity
the nature and extent of such non-compliance, rectify the same at Lessor’s expense. If Lessee does not give Lessor written
notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that non-compliance shall
be the obligation of Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed so as
to require during the term of this Lease the construction of an addition to or an alteration of the Unit, Premises and/or Building,
the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building
(“Capital Expenditure”), Lessor and Lessee shall allocate the cost of such work as follows:

 

(a)               
Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique
use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof.

 

    	Page 3 of 39

    	 

    
 

 

(b)              
If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as,
governmentally mandated seismic modifications), then Lessor then Lessor shall pay for such Capital Expenditure and Lessee shall
only be obligated to pay, each month during the remainder of this Lease, on the date that on which the Base Rent is due, an amount
equal to 144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay interest on the
balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years of
this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have
the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within
10 days after receipt of Lessor’s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not
elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same,
with Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to finance Lessor’s
share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee
on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.

 

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

 

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

 

2.5             
Intentionally Omitted..

 

2.6             
Vehicle Parking. Lessee shall be entitled to use the number of parking spaces specified in Paragraph 1.2(b)
on those portions of the Common Areas designated from time to time by Lessor for parking. Lessee shall not use more parking spaces
than said number. Said parking spaces shall be used for parking by vehicles no larger than full-size passenger automobiles or pick-up
trucks, herein called “Permitted Size Vehicles.” Lessor may regulate the loading and unloading of vehicles by adopting
Rules and Regulations as provided in Paragraph 2.9. No vehicles other than Permitted Size Vehicles may be parked in the Common
Area without the prior written permission of Lessor. In addition:

 

    	Page 4 of 39

    	 

    
 

 

(a)               
Lessee shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee’s employees,
suppliers, shippers, customers, contractors or invitees to be loaded, unloaded, or parked in areas other than those designated
by Lessor for such activities.

 

(b)              
Lessee shall not service or store any vehicles in the Common Areas.

 

(c)               
If Lessee permits or allows any of the prohibited activities described in this Paragraph 2.6, then Lessor shall have
the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle involved
and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

 

2.7             
Common Areas—Definition. The term “Common Areas” is defined as all areas and facilities
outside the Premises and within the exterior boundary line of the Project and interior utility raceways and installations within
the Unit that are provided and designated by the Lessor from time to time for the general non-exclusive use of Lessor, Lessee and
other tenants of the Project and their respective employees, suppliers, shippers, customers, contractors and invitees, including
parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas.

 

2.8             
Common Areas—Lessee’s Rights. Lessor grants to Lessee, for the benefit of Lessee and its employees,
suppliers, shippers, contractors, customers and invitees, during the term of this Lease, the non-exclusive right to use, in common
with others entitled to such use, the Common Areas as they exist from time to time, subject to any rights, powers, and privileges
reserved by Lessor under the terms hereof or under the terms of any rules and regulations or restrictions governing the use of
the Project. Under no circumstances shall the right herein granted to use the Common Areas be deemed to include the right to store
any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent
of Lessor or Lessor’s designated agent, which consent may be revoked at any time. In the event that any unauthorized storage
shall occur then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to
remove the property and charge the cost to Lessee, which cost shall be immediately payable upon demand by Lessor.

 

2.9             
Common Areas—Rules and Regulations. Lessor or such other person(s) as Lessor may appoint shall have
the exclusive control and management of the Common Areas and shall have the right, from time to time, to establish, modify, amend
and enforce reasonable rules and regulations (“Rules and Regulations”) for the management, safety, care, and cleanliness
of the grounds, the parking and unloading of vehicles and the preservation of good order, as well as for the convenience of other
occupants or tenants of the Building and the Project and their invitees. Lessee agrees to abide by and conform to all such Rules
and Regulations, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform.
Lessor shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other tenants of the Project.

 

    	Page 5 of 39

    	 

    
 

 

2.10         
Common Areas—Changes. Lessor shall have the right, in Lessor’s sole discretion, from time to time:

 

(a)               
To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number
of driveways, entrances, parking spaces, parking areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped
areas, walkways and utility raceways;

 

(b)              
To close temporarily any of the Common Areas for maintenance purposes so long as reasonable access to the Premises
remains available;

 

(c)               
To designate other land outside the boundaries of the Project to be a part of the Common Areas;

 

(d)              
To add additional buildings and improvements to the Common Areas;

 

(e)               
To use the Common Areas while engaged in making additional improvements, repairs or alterations to the Project, or
any portion thereof; and

 

(f)               
To do and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project
as Lessor may, in the exercise of sound business judgment, deem to be appropriate.

 

		3.	Term.

 

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

 

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

 

3.3             
Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of
the Premises to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession as agreed, Lessor
shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration
Date. Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of
the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of the delivery
of possession and continue for a period equal to what Lessee would otherwise have enjoyed, but minus any days of delay caused by
he acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, Lessee may, at its option,
by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall be
discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee’s
right to cancel shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by the Start Date and Lessee
does not terminate this Lease, as aforesaid, any period of rent abatement that Lessee would otherwise have enjoyed shall run from
the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms
hereof, but minus any days of delay caused by the acts or omissions of Lessee. If possession of the Premises is not delivered within
4 months after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee,
in writing.

 

    	Page 6 of 39

    	 

    
 

 

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

 

		4.	Rent.

 

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

 

4.2             
Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in addition to the Base
Rent, Lessee’s Share (as specified in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined, during
each calendar year of the term of this Lease, in accordance with the following provisions:

 

(a)               
“Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs incurred
by Lessor relating to the ownership and operation of the Project, including, but not limited to, the following:

 

(i)                
The operation, repair and maintenance, in neat, clean, good order and condition of the following:

 

(aa)The Common Areas
and Common Area improvements, including parking areas, loading and unloading areas, trash areas, roadways, parkways, walkways,
driveways, landscaped areas, bumpers, irrigation systems, Common Area lighting facilities, fences and gates, elevators, roofs,
and roof drainage systems.

 

(bb)Exterior signs
and any tenant directories.

 

(cc)Any fire detection
and/or sprinkler systems.

 

(ii)              
The cost of water, gas, electricity and telephone to service the Common Areas and any utilities not separately metered.

 

    	Page 7 of 39

    	 

    
 

 

(iii)            
The cost of trash disposal, pest control services, property management, security services, owners’ association
dues and fees, the cost to repaint the exterior of any structures and the costs of any environmental inspections.

 

(iv)            
Reserves set aside for maintenance and repair and/or replacement of Common Area Improvements and equipment.

 

(v)              
Real Property Taxes (as defined in Paragraph 10).

 

(vi)            
The cost of the premiums for the insurance maintained by Lessor pursuant to Paragraph 8.

 

(vii)          
Any deductible portion of an insured loss concerning the Building or the Common Areas.

 

(viii)        
Auditors’, accountants’ and attorneys’ fees and costs related to the operation, maintenance, repair
and replacement of the Project.

 

(ix)            
The cost of any Capital Expenditure to the Building or the Project not covered under the provisions of Paragraph
2.3 provided; however, that Lessor shall allocate the cost of any such capital improvement over a 12 year period and Lessee shall
not be required to pay more than Lessee’s Share of 1/144th of the cost of such capital improvement in any given month.

 

(x)              
The cost of any other services to be provided by Lessor that are stated elsewhere in this Lease to be a Common Area
Operating Expense.

 

(b)              
Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable to the Unit, the Building
or to any other building in the Project or to the operation, repair and maintenance thereof, shall be allocated entirely to such
Unit, Building, or other building. However, any Common Area Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building or to the operation, repair and maintenance thereof, shall be equitably allocated
by Lessor to all buildings in the Project.

 

(c)               
The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a) shall not be deemed to
impose an obligation upon Lessor to either have said improvements or facilities or to provide those services unless the Project
already has the same, Lessor already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or
some of them.

 

(d)              
Lessee’s Share of Common Area Operating Expenses is payable monthly on the same day as the Base Rent is due
hereunder. The amount of such payments shall be based on Lessor’s estimate of the annual Common Area Operating Expenses.
within 60 days after written request (but no more than once each year) Lessor shall deliver to Lessee a reasonably detailed statement
showing Lessee’s Share of the actual Common Area Operating Expenses incurred during the preceding year. If Lessee’s
payments during such year exceed Lessee’s Share, Lessor shall credit the amount of such over-payment against Lessee’s
future payments. If Lessee’s payments during such year were less than Lessee’s Share, Lessee shall pay to Lessor the
amount of the deficiency within 10 days after delivery by Lessor to Lessee of the statement.

 

    	Page 8 of 39

    	 

    
 

 

4.3             
Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States,
without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary
amounts shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy
shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during
the term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month.
Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time
to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s
rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the event that any check,
draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the
sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier’s check.
Payments will be applied first to accrued late charges and attorney’s fees, second to accrued interest, then to Base Rent
and Common Area Operating Expenses, and any remaining amount to any other outstanding charges or costs.

 

5.                 
Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security
for Lessee’s faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults
under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already
due Lessor, for Rents which will be due in the future, and/or to reimburse or compensate Lessor for any liability, expense, loss
or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit,
Lessee shall within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit
to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written
request from Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times
bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed
Use be amended to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall
have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for
any increased wear and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this
Lease and following such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced,
Lessee shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially
reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate
from its general accounts. Within 90 days after the expiration or termination of this Lease, if Lessor shall return that portion
of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust,
to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease.

 

    	Page 9 of 39

    	 

    
 

 

		6.	Use.

 

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

 

		6.2	Hazardous Substances.

 

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

 

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

 

    	Page 10 of 39

    	 

    
 

 

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

 

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

 

(e)               
Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold
Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation,
which existed as a result of Hazardous Substances on the Premises prior to the Start Date or which are caused by the gross negligence
or willful misconduct of Lessor, its agents or employees. Lessor’s obligations, as and when required by the Applicable Requirements,
shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall
survive the expiration or termination of this Lease.

 

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

 

    	Page 11 of 39

    	 

    
 

 

(g)              
Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during
the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation
thereof required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s
rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such
Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease
shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly
Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge
of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date 60 days
following the date of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter,
give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such Hazardous
Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall
provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this
Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible
after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof
within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of termination.

 

6.3             
Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee
shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements,
the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers
and/or consultants which relate in any manner to such requirements, without regard to whether said requirements are now in effect
or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor’s written request, provide
Lessor with copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable
Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any documents involved)
of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee
or the Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give notice to Lessor of: (i) any
water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold;
(ii) any mustiness or other odors that might indicate the presence of mold in the Premises.

 

6.4             
Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30) and consultants
shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the
purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such
inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance Condition (see Paragraph
9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee
shall upon request reimburse Lessor for the cost of such inspection, so long as such inspection is reasonably related to the violation
or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within
10 days of the receipt of written request therefor.

 

    	Page 12 of 39

    	 

    
 

 

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

 

		7.1	Lessee’s Obligations.

 

(a)               
In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee’s
Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee
shall, at Lessee’s sole expense, keep the Premises, Utility Installations (intended for Lessee’s exclusive use, no
matter where located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring
repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such
repairs occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including,
but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure
vessels, fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors, plate glass, roofs, and
skylights but excluding any items which are the responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises
in good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement
and maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations,
replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition
and state of repair.

 

(b)              
Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies
to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following
equipment and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and pressure vessels,
(iii) clarifiers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all of such service
contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

 

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

 

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

 

    	Page 13 of 39

    	 

    
 

 

7.2             
Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 4.2
(Common Area Operating Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor,
subject to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls,
structural condition of interior bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm and/or smoke detection
systems, fire hydrants, parking lots, walkways, parkways, driveways, landscaping, fences, signs and utility systems serving the
Common Areas and all parts thereof, as well as providing the services for which there is a Common Area Operating Expense pursuant
to Paragraph 4.2. Lessor shall not be obligated to paint the exterior or interior surfaces of exterior walls nor shall Lessor be
obligated to maintain, repair or replace windows, doors or plate glass of the Premises. Lessee expressly waives the benefit of
any statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.

 

		7.3	Utility Installations; Trade Fixtures; Alterations.

 

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

 

(b)              
Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor’s
prior written consent. Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding
the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing,
relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems,
and the cumulative cost thereof during this Lease as extended does not exceed a sum equal to 3 month’s Base Rent in the aggregate
or a sum equal to one month’s Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any
roof penetrations and/or install anything on the roof without the prior written approval of Lessor. Any Alterations or Utility
Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written
form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits,
(ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and
(iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any
Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall
promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount in excess of one
month’s Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to
150% of the estimated cost of such Alteration or Utility Installation and/or upon Lessee’s posting an additional Security
Deposit with Lessor. However, notwithstanding anything to the contrary contained in this Lease, Lessee shalln ot make any Alterations
to the Premises, including without limitation, installing any Utility Installations or Trade Fixtures, that will add to the existing
load on or serve to further stress the roof, ceiling or structural walls of the Premises, without Lessor’s prior written
consent, to be given or withheld in Lessor’s sole and absolute discretion. If Lessee permits any additional load on or stress
to the ceiling or structural walls, whether with or without Lessor’s consent, then without in any way limiting Lessee’s
obligations set forth elsewhere in this Lease, Lessee shall be responsible for all costs incurred by Lessor for reinforcement,
repair and/or replacement of the Premises and its structural components.

 

    	Page 14 of 39

    	 

    
 

 

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

 

		7.4	Ownership; Removal; Surrender; and Restoration.

 

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

 

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

 

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

 

    	Page 15 of 39

    	 

    
  

		8.	Insurance; Indemnity.

 

8.1             
Payment of Premiums. The cost of the premiums for the insurance policies required to be carried by Lessor,
pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), shall be a Common Area Operating Expense. Premiums for policy periods commencing
prior to, or extending beyond, the term of this Lease shall be prorated to coincide with the corresponding Start Date or Expiration
Date.

 

		8.2	Liability Insurance.

 

(a)               
Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance
protecting Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based
upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance
shall be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual
aggregate of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as
broad as the Insurance Service Organization’s “Additional Insured-Managers or Lessors of Premises Endorsement”.
The policy shall contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for
liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations
under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder. Lessee

 

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

 

		8.3	Property Insurance—Building, Improvements
and Rental Value.

 

(a)               
Building and Improvements. Lessor shall obtain and keep in force a policy or policies of insurance in the
name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The
amount of such insurance shall be equal to the full replacement cost of the Premises, as the same shall exist from time to time,
or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee
under Paragraph 8.4. If the coverage is available and commercially appropriate, such policy or policies shall insure against all
risks of direct physical loss or damage (including the perils of flood and/or earthquake), including coverage for debris removal
and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion
of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation provision in lieu
of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance
coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers
for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount
shall not exceed $10,000 per occurrence.

 

    	Page 16 of 39

    	 

    
 

 

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

 

(c)               
Adjacent Premises. Lessee shall pay for any increase in the premiums for the property insurance of the Building
and for the Common Areas or other buildings in the Project if said increase is caused by Lessee’s acts, omissions, use or
occupancy of the Premises.

 

(d)              
Lessee’s Improvements. Since Lessor is the Insuring Party, Lessor shall not be required to insure Lessee
Owned Alterations and Utility Installations unless the item in question has become the property of Lessor under the terms of this
Lease.

 

		8.4	Lessee’s Property; Business Interruption Insurance.

 

(a)               
Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property,
Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage
with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the
replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor
with written evidence that such insurance is in force.

 

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

 

    	Page 17 of 39

    	 

    
 

 

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

 

8.5             
Insurance Policies. Insurance required herein shall be by companies duly licensed or admitted to transact
business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders Rating”
of at least A-, VI, as set forth in the most current issue of “Best’s Insurance Guide”, or such other rating
as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies.
Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing
the existence and amounts of the required insurance. No such policy shall be cancelable or subject to modification except after
30 days prior written notice to Lessor. Lessee shall, at least 30 days prior to the expiration of such policies, furnish Lessor
with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may order such insurance and
charge the cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a
term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to
procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and
maintain the same.

 

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

 

8.7             
Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect,
defend and hold and hold harmless the Premises, Lessor and is agents, Lessor’s master or ground lessor, partners and Lenders,
from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’
fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by
Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice
defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in
such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.

 

8.8             
Exemption of Lessor and its Agents from Liability. Notwithstanding thenegligence or breach of this Lease by
Lessor or its agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person
or goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water
or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from
conditions arising upon the Premises or upon other portions of the Building, or from other sources or places; (ii) any damages
arising from any act or neglect of any other tenant of Lessor nor from the failure of Lessor to enforce the provisions of any other
lease in the Project; or (iii) injury to Lessee’s business or for any loss of income or profit therefrom. Instead, it is
intended that Lessee’s sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies)
that Lessee is required to maintain pursuant to the provisions of paragraph 8.

 

    	Page 18 of 39

    	 

    
  

		9.	Damage or Destruction.

 

		9.1	Definitions.

 

(a)               
“Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises,
other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or less from the date
of the damage or destruction, and the cost thereof does not exceed a sum equal to 6 month’s Base Rent. Lessor shall notify
Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total.
Notwithstanding the foregoing, Premises Partial Damage shall not include damage to windows, doors, and/or other similar items which
Lessee has the responsibility to repair or replace pursuant to the provisions of Paragraph 7.1.

 

(b)              
“Premises Total Destruction” shall mean damage or destruction to the improvements on the Premises,
other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 3 months
or less from the date of the damage or destruction and/or the cost thereof exceeds a sum equal to 6 month’s Base Rent. Lessor
shall notify Lessee in writing within 30 days from the date of the damage or destruction as to whether or not the damage is Partial
or Total.

 

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

 

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

 

(e)               
“Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving
the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises.

 

    	Page 19 of 39

    	 

    
 

 

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

 

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

 

9.4             
Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this
Lease shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful
misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph
8.6.

 

    	Page 20 of 39

    	 

    
 

 

9.5             
Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the
cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60
days following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the
date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this
Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor
with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of
(i) the date which is 10 days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease,
or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides
Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s
commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force
and effect. If Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall
terminate on the date specified in the termination notice and Lessee’s option shall be extinguished.

 

		9.6	Abatement of Rent; Lessee’s Remedies.

 

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

 

(b)              
Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence, in a substantial
and meaningful way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior
to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual
notice, of Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of such notice.
If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate
as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue
in full force and effect. “Commence” shall mean either the unconditional authorization of the preparation of the required
plans, or the beginning of the actual work on the Premises, whichever first occurs.

 

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

 

		10.	Real Property Taxes.

 

10.1         
Definition. As used herein, the term “ Real Property Taxes” shall include any form of assessment;
real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate
taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Project,
Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority having the direct or
indirect power to tax and where the funds are generated with reference to the Project address and where the proceeds so generated
are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Project is located. The
term “Real Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any increase therein, (i)
imposed by reason of events occurring during the term of this Lease, including but not limited to, a change in the ownership of
the Project; (ii) a change in the improvements thereon; and/or (iii) levied or assessed on machinery or equipment provided by Lessor
to Lessee pursuant to this Lease. In calculating Real Property Taxes for any calendar year, the Real Property Taxes for any real
estate tax year shall be included in the calculation of Real Property Taxes for such calendar year based upon the number of days
which such calendar year and tax year have in common.

 

    	Page 21 of 39

    	 

    
 

 

10.2         
Payment of Taxes. Except as otherwise provided in Paragraph 10.3, Lessor shall pay the Real Property Taxes
applicable to the Project, and said payments shall be included in the calculation of Common Area Operating Expenses in accordance
with the provisions of Paragraph 4.2

 

10.3         
Additional Improvements. Common Area Operating Expenses shall not include Real Property Taxes specified in
the tax assessor’s records and work sheets as being caused by additional improvements placed upon the Project by other lessees
or by Lessor for the exclusive enjoyment of such other lessees. Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay
to Lessor at the time Common Area Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property
Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed upon the Premises by Lessee or
at Lessee’s request or by reason of any alterations or improvements to the Premises made by Lessor subsequent t the execution
of this Lease by the Parties..

 

10.4         
Joint Assessment. If the Building is not separately assessed, Real Property Taxes allocated to the Building
shall be an equitable proportion of the Real Property Taxes for all of the land and improvements included within the tax parcel
assessed, such proportion to be determined by Lessor from the respective valuations assigned in the assessor’s work sheets
or such other information as may be reasonably available. Lessor’s reasonable determination thereof, in good faith, shall
be conclusive.

 

10.5         
Personal Property Taxes. Lessee shall pay prior to delinquency all taxes assessed against and levied upon
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee
contained in the Premises. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures,
furnishings, equipment and all other personal property to be assessed and billed separately from the real property of Lessor. If
any of Lessee’s said property shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable
to Lessee’s property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s
property.

 

11.             
Utilities. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities
and services supplied to the Premises, together with any taxes thereon. Notwithstanding the provisions of Paragraph 4.2, if at
any time in Lessor’s sole judgment, Lessor determines that Lessee is using a disproportionate amount of water, electricity
or other commonly metered utilities, or that Lessee is generating such a large volume of trash as to require an increase in the
size of the trash receptacle and/or an increase in the number of times per month that it is emptied, then Lessor may increase Lessee’s
Base Rent by an amount equal to such increased costs. There shall be no abatement of Rent and Lessor shall not be liable in any
respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike,
labor dispute, breakdown, accident, repair or other cause beyond Lessor’s reasonable control or in cooperation with governmental
request or directions.

 

    	Page 22 of 39

    	 

    
 

 

		12.	Assignment and Subletting.

 

		12.1	Lessor’s Consent Required.

 

(a)               
Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “assign
or assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s
prior written consent.

 

(b)              
Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control
of Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control
of Lessee shall constitute a change in control for this purpose.

 

(c)               
The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition,
financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee’s
assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net
Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor
has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was
or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth of Lessee”
shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles.

 

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

 

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

 

(f)               
Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time
consent is requested.

 

    	Page 23 of 39

    	 

    
 

 

		12.2	Terms and Conditions Applicable to Assignment and
Subletting.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

    	Page 24 of 39

    	 

    
 

 

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

 

(b)              
In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event
Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the
expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such
sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

 

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

 

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

 

(e)               
Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right
to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement
and offset from and against Lessee for any such Defaults cured by the sublessee. See Addendum 58.

 

		13.	Default; Breach; Remedies.

 

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

 

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

 

(b)              
The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder,
whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any
obligation under this Lease which endangers or threatens life or property, where such failure continues for a period of 5 business
days following written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE
A WAIVER OF ANY OF LESSOR’S RIGHTS, INCLUDING LESSOR’S RIGHT TO RECOVER POSSESSION OF THE PREMISES.

 

    	Page 25 of 39

    	 

    
 

 

(c)               
The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or
acts constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue
for a period of 3 business days following written notice to Lessee.

 

(d)              
The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii)
the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial
statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document requested
under Paragraph 41, (viii) material data safety sheets (MSDS), or (ix) any other documentation or information which Lessor may
reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10 days following
written notice to Lessee.

 

(e)               
A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under
Paragraph 2.9 hereof, other than those described in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for
a period of 30 days after written notice; provided, however, that if the nature of Lessee’s Default is such that more than
30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said
30 day period and thereafter diligently prosecutes such cure to completion.

 

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

 

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

 

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

 

    	Page 26 of 39

    	 

    
 

 

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

 

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

 

    	Page 27 of 39

    	 

    
 

 

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

 

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

 

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

 

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

 

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

 

    	Page 28 of 39

    	 

    
 

 

		13.6	Breach by Lessor.

 

(a)               
Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable
time to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no
event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing
for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that
if the nature of Lessor’s obligation is such that more than 30 days are reasonably required for its performance, then Lessor
shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.

 

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

 

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

 

		15.	Brokerage Fees.

 

		15.1	Intentionally Omitted.

 

    	Page 29 of 39

    	 

    
 

		15.2	Intentionally Omitted.

 

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

 

		16.	Estoppel Certificates.

 

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

 

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

 

(c)               
If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall
deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such
lender or purchaser, including but not limited to Lessee’s financial statements for the past 3 years. All such financial
statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein
set forth.

 

17.             
Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the time
in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In
the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee
or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of
the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or
covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants
in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.

 

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

 

    	Page 30 of 39

    	 

    
 

 

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

 

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

 

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

 

22.             
No Prior or Other Agreements. This Lease contains all agreements between the Parties with respect to any matter
mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents
and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character
and financial responsibility of the other Party to this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party.

 

		23.	Notices.

 

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

 

23.2         
Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed
given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. Notices delivered
by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours after delivery
of the same to the Postal Service or courier. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed
received on the next business day.

 

		24.	Waivers.

 

(a)               
No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof Lessee shall be deemed a waiver
of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term,
covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to
enforce the provision or provisions of this Lease requiring such consent.

 

    	Page 31 of 39

    	 

    
 

 

(b)              
The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee
may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made
by Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically
agreed to in wiring by Lessor at or before the time of deposit of such payment.

 

(c)               
THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATERS RELATED THERETO AND HEREBY
WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

 

		25.	Intentionally Omitted.

 

		26.	See Addendum 60.

 

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

 

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

 

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

 

		30.	Subordination; Attornment; Non-Disturbance.

 

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

 

    	Page 32 of 39

    	 

    
 

 

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

 

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

 

30.4         
Self-Executing. The agreements contained in this Paragraph 29 shall be effective without the execution of
any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing
or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately
document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.

 

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

 

    	Page 33 of 39

    	 

    
 

 

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

 

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

 

34.             
Signs. Lessor may place on the Premises ordinary “For Sale” signs at any time and ordinary “For
Lease” signs during the last 6 months of the term hereof. Except for ordinary “For Sublease” signs which may
be placed only on the Premises, Lessee shall not place any sign upon the Project without Lessor’s prior written consent.
All signs must comply with all Applicable Requirements.

 

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

 

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

 

		37.	Intentionally Omitted.

 

    	Page 34 of 39

    	 

    
 

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

 

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

 

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

 

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

 

39.3         
Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later
Option cannot be exercised unless the prior Options have been validly exercised.

 

39.4         
Effect of Default on Options.

 

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

 

(b)              
The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee’s
inability to exercise an Option because of the provisions of Paragraph 37.4(a).

 

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

 

40.             
Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the
cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes
all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third
parties.

 

    	Page 35 of 39

    	 

    
 

 

41.             
Reservations. Lessor reserves the right: (i) to grant, without the consent or joinder of Lessee, such easements,
rights and dedications that Lessor deems necessary, (ii) to cause the recordation of parcel maps and restrictions, and (iii) to
create and/or install new utility raceways, so long as such easements, rights, dedications, maps, restrictions and utility raceways
do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested
by Lessor to effectuate such rights.

 

42.             
Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid
by one Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall
have the right to make payment “under protest” and such payments shall not be regarded as a voluntary payment and there
shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums
paid “under protest” within 6 months shall be deemed to have waived its right to protest such payment.

 

		43.	Authority; Multiple Parties; Execution.

 

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

 

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

 

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

 

44.             
Conflict. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisions
shall be controlled by the typewritten or handwritten provisions.

 

45.             
Offer. Preparation of this Lease by either party or their agent and submission of same to the other Party
shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered
by all Parties hereto.

 

46.             
Amendments. This Lease may be modified only in writing, signed by the parties in interest at the time of the
modification. As long as they do not materially change Lessee’s obligations hereunder. Lessee agrees to make such reasonable
non-monetary modifications ot this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing
or refinancing of the Premises.

 

    	Page 36 of 39

    	 

    
 

 

47.             
Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.

 

48.             
Mediation and Arbitration of Disputes. An Addendum requiring the mediation and/or the Arbitration of all disputes
between the Parties and/or Brokers arising out of this Lease  ̈ is  ̈ is not attached to this Lease.

 

49.             
Americans with Disabilities Act. Since compliance with the Americans with Disabilities Act (ADA) is dependent
upon Lessee’s specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises
comply with ADA or any similar legislation. In the event that Lessee’s use of the Premises requires modifications or additions
to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee’s
expense.

 

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

 

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

 

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

 

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

 

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

 

    	Page 37 of 39

    	 

    
  

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

 

	Executed at:	 	 	Executed at:	Hawthorne, CA
	On:	 	 	On:	3/3/08
	By Lessor:	 	By Lessee:
	Jonda Hawthorne, LLC, a California	 	DBA Distribution Services, Inc.
	Limited Liability Company	 	a New Jersey Corporation
	 	 	 
	 	 	 
	By: Kar3 Properties Limited Partnership, a Delawre Limited Partnership, Member	 	By: /s/ Paul Pollara_____________________
	
         

        By: AKG3 Properties, LLC, a California
        Limited Liability Company, General Partner
	 	 
	
         

        By: /s/ Aliza K. Guren
	 	 
	Name Printed:	Aliza K. Guren	 	Name Printed:	Paul Pollara
	Title:	Member	 	Title:	Exec. V.P.
	 	 	 
	 	 	 
	By:	 	By: /s/ Paul Pollara_____________________
	 	 	 
	 	 	 
	Name Printed:	 	 	Name Printed:	Paul Pollara
	Title:	 	 	Title:	Exec. V.P.
	Address:	 	 	Address:	 
	12011 San Vincente Boulevard, Suite 700	 	2701 El Segundo Boulevard
	Los Angeles, CA 90049	 	Hawthorne, CA 90250
	Telephone:	(310) 476-5633	 	Telephone:	(805) 498-5971
	Facsimile:	(310) 476-4712	 	Facsimile:	(323) 779-6958
	Federal ID No.	 	 	Federal ID No.	22-2636459
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	Page 38 of 39

    	 

    
   

 

	Broker:	 	Broker:
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	Attn:	 	 	Attn:	 
	Title:	 	 	Title:	 
	Address:	 	 	Address:	 
	 	 	 
	 	 	 
	Telephone:	 	 	Telephone:	 
	Facsimile:	 	 	Facsimile:	 
	Email:	 	 	Email:	 
	Federal ID No.	 	 	Federal ID No.	 
	 	 	 	 	 	 	 	 	 

 

 

NOTICE: These forms are often modified
to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form:
AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800 Los Angeles, CA 90017.

Telephone No. (213) 687-8777. Fax No. (213) 687-8616.

 

©Copyright 1999 By Air Commercial
Real Estate Association

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

 

    	Page 39 of 39

    	 

    
 

ARBITRATION AGREEMENT

Standard Lease Addendum

 

	 	Dated:	 	February 25, 2008
	 	 	 
	 	By and Between (Lessor):	 	Jonde Hawthorne, LLC, a California Limited
	 	 	Liability Company
	 	 	 
	 	(Lessee):	 	DBA Distribution Services, Inc., a New Jersey
	 	 	Corporation
	 	 	 
	 	Address of Premises:	2701 W. El Segundo Boulevard
	 	 	Hawthorne, California
	 	 	 
	 	 	 	 	 

  

Paragraph 51

 

		A.	ARBITRATION OF DISPUTE:

 

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

 

		B.	DISPUTES EXCLUDED FROM ARBITRATION:

 

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

 

    	 

    	 

    
  

		C.	APPOINTMENT OF AN ARBITRATOR:

 

All disputes subject to this
Arbitration Agreement, shall be determined by binding arbitration before: a retired judge or mediator of the applicable court
of jurisdiction (e.g., the Superior Court of the State of California) affiliated with Judicial Arbitration & Mediation
Services, Inc. (“JAMS”), who has five (5) or more years of experience with real estate valuation in the
industrial real estate market in the greater Los Angeles area  _______________________________________ or as may be otherwise
mutually agreed by Lessor and Lessee (the “Arbitrator”). Such arbitration shall be initiated by the Parties, or
either of them, within ten (10) days after either party sends written notice (the “Arbitration Notice”) of a
demand to arbitrate by registered or certified mail to the other party and to the Arbitrator. The Arbitration Notice
shall contain a description of the subject matter of the arbitration, the dispute with respect thereto, the amount involved,
if any, and the remedy or determination sought. If the Parties have agreed to use JAMS they may agree on a retired judge from
the JAMS panel. If they are unable to agree within ten days, JAMS will provide a list of three available judges and each
party may strike one. The remaining judge (or if there are two, the one selected by JAMS) will serve as the Arbitrator. If
the Parties have elected to utilize AAA or some other organization, the Arbitrator shall be selected in accordance with said
organization’s rules. In the event the Arbitrator is not selected as provided for above for any reason, the party
initiating arbitration shall apply to the appropriate Court for the appointment of a qualified retired judge to act as the
Arbitrator.

 

		D.	ARBITRATION PROCEDURE:

 

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

 

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

 

 

 

	 	Page 2 of 3 	 
	____________ 	 	_____________ 
	INITIALS 	 	INITIALS 

  

    	 

    	 

    
  

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

 

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

 

NOTICE: These forms are often modified
to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form:
AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213)687-8777. Fax No.:
(213) 687-8616.

 

 

 

	 	Page 3  of 3 	 
	____________ 	 	_____________ 
	INITIALS 	 	INITIALS 

  

    	 

    	 

    
 

Addendum to Standard Industrial/Commercial
Multi-Tenant Lease-Net dated for reference purposes only. February 15. 2008 for the property located at 2705 W. El Segundo Boulevard,
Hawthorne, California by and between Jonda Hawthorne. LLC, A California Limited Liability Company (Lessor) and DBA Distribution
Services, Inc., a New Jersey Corporation (Lessee).

 

Addendum 52 Payment of Rent

All Rent payments, including but not limited
to Base Rent, Rent Escalations, Common Area Charges, Real Property Taxes and Insurance Reimbursements (as applicable) shall be
made payable and sent to:

 

Jonda Hawthorne, LLC

 

JHL

Dept. LA 22472

Pasadena 91185-2474

 

Lessor may by written notice to Lessee
specify a different address for the payment of Rent.

 

Addendum
53 Base Rent Escalations.

 

The Base Rent shall be increased in an
amount equal to the increase in the Consumer Price Index (“CPI”) with an increase effective on the following dates:

 

	INCREASE DATE	BASE COMPARISON MONTH
	March I, 2010	December, 2007
	March I, 2012	December, 2009

 

The increase in the Consumer Price Index
shall be computed based on the “Consumer Price Index for All Urban Consumers, Los Angeles-Riverside-Orange County Index,
All Items, 1982-84=100”, issued by the United States Department of Labor, Bureau of Labor Statistics. If the Index for the
month which is three (3) months prior to the increase date is greater than the Index for the corresponding Base Comparison Month
referenced above, then the monthly Base Rent will be increased in the same proportion as the increase. However, such Increase shall
not be more than twelve percent (12%) nor less than six percent (6%). In no event shall the monthly Base Rent be decreased as a
result of any declines in said Consumer Price Index.

 

Should the United States Department
of Labor re-adjust the above-described Consumer Price Index to a different base period than the base period in effect when
this Lease is executed, then such change in the base shall be taken into account and reflected in all adjustments. Should the official
reports of the United States Department of Labor be unavailable for the relevant period at the time that any adjustment hereunder
is to become effective, Lessee shall pay the rental on the unadjusted basis until the statistical information for the adjustment
is available, and within fifteen (15) days from written notice by Lessor to Lessee of the adjustment including figures upon which
the adjustment is based, Lessee shall pay to Lessor such sum as represents the difference between the rent paid and the adjusted
amount of the rent due and payable. In addition, at such time, Lessee shall pay to Lessor an amount sufficient to cause the security
deposit hereunder to be increased in an amount equal to the new monthly base rental. If the described Index shall no longer be
published, another index generally recognized as authoritative shall be substituted by agreement of the parties. If they are unable
to agree within thirty (30) days after demand by either party, the substitute index shall, on application of either party, be selected
by the chief officer of the San Francisco Regional Office of the Bureau of Labor Statistics or its successor. If selection by such
officer cannot be obtained, the adjustment shall be made by mutual agreement or by arbitration.

 

    	 

    	 

    
  

Addendum 54 Improvements

 

Lessor, at Lessor’s sole cost and
expense, shall cause its designated contractor to:

 

		a.	substantially complete the refurbishment of all office and the installation of the new restrooms

 

		b.	create an opening with an operable door, in the easterly drywall separating unit 2701 from 2705 El Segundo Boulevard. Said
opening shall be 20’ wide by 12’ high and positioned in a mutually agreeable location, to Lessor and Lessee.

 

Addendum 54 Option to Extend 

 

Lessor hereby grants to Lessee one (1)
option to extend the Term of this Lease for five (5) additional years commencing when the Original Term expires upon each and all
of the following terms and conditions:

 

		a.	In order to exercise an option to extend, Lessee must give written notice of such election to Lessor and Lessor must receive
the same at least 6 months, but not more than 9 months, prior to the date that the option period would commence, time being of
the essence. If proper notification of the exercise of an option is not given and/or received, such option shall automatically
expire.

 

		b.	The provisions of paragraph 39, including those relating to Lessee’s Default set forth in paragraph 39.4 of this Lease,
are conditions of this Option. Except for the provisions of this Lease granting an option to extend the term and improvements required
to be made by Lessor, all of the terms and conditions of this Lease except where specifically modified by this option shall apply.
Notwithstanding anything to the contrary herein, Lessor shall not be required to install any additional improvements for Lessee
at the • commencement of the Option Term.

 

		c.	This Option is personal to the original Lessee, and cannot be assigned hr exercised by anyone other than said original Lessee
and only while the original lessee is in full possession of the Premises. and without

 

		d.	The monthly rent and base rent adjustments for each month of option period shall be the “Market Rental Value” (MRV)
of the property, based on comparable properties in the immediate area, as follows:

 

    	 

    	 

    
 

		1)	Six months prior to Expiration Date, the Parties shall attempt to agree upon what the new MRV will be on the commencement of
the extended term. If agreement cannot be reached, within thirty days, then:

 

		a)	Lessor and Lessee shall immediately appoint a mutually acceptable broker to establish the new MRV within the next thirty days.
Any associated costs will be split equally between the Parties, or

 

		b)	Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV and submit such determination, in
writing, to arbitration in accordance with the following provisions:

 

(i)                
Within fifteen days thereafter, Lessor and Lessee shall each select a broker (“Consultant”) of their
choice to act as an arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant
to act as a third arbitrator.

 

(ii)              
The three arbitrators shall within thirty days of the appointment of the third arbitrator reach a decision as to
what the actual MRV for the Premises is, and whether Lessor’s or Lessee’s submitted MRV is the closest thereto. The
decision of a majority of the arbitrators shall be binding on the Parties. The submitted MRV which is determined

 

(iii)            
 to be the Oleic-it to the actual MRV Shill thereafter be used by the Parties.

 

(iv)            
If either of the Parties fails to appoint an arbitrator within the specified fifteen days, the arbitrator timely
appointed by one of them shall reach a decision on his or her own, and said decision shall be binding on the Parties.

 

(v)              
The entire cost of such arbitration shall be paid by the party whose submitted MRV Is not selected, i.e. the one
that is NOT the closest to the actual MRV .

 

		2)	Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the month immediately prior to said
MRV adjustment.

 

Addendum 56 Slots 

 

Lessee shall have the right to place its
business sign(s) upon the Premises, subject to Lessor’s approval which shall not be unreasonably withheld and provided such
sign(s) is/are in compliance with applicable law and record covenants. Upon the termination of the Lease, Lessee shall remove its
signs and repair any damages caused by the removal.

 

    	 

    	 

    
  

Addendum 57 Outdoor Storage

 

Lessee shall not store containers, equipment
or packing materials in any outdoor area of the Premises, except as approved by prior written consent of Lessor.

 

Addendum 5S Additional Terms and
Conditions Applicable to Assignment and Sub-Leasing

 

In the event of an assignment or subletting
that is consented to by Lessor, Lessor shall be entitled to fifty percent (50%) of the excess of the consideration received by
Lessee, as and when received by Lessee, from the assignee or subtenant over the Rent payable by Lessee to Lessor under this Lease
(and calculated on a per square foot basis if less than all of the Premises are involved in the sublease), after first deducting
Lessee’s reasonable costs of brokerage and legal fees and alterations and allowances paid by Lessee in connection with the
assignment or sublease. A separate agreement shall be drawn, by Lessor, evidencing the specific details of such shared consideration,
at such time as the consent to the assignment or sublease is executed. Lessor or its authorized representatives shall have the
right at all reasonable times to audit the books, records and papers of Lessee relating to any such transfer, and shall have the
right to make copies thereof. If Lessor’s share of the excess from any such transfer shah be found understated, Lessee shall,
within thirty (30) days after demand, pay the deficiency and Lessor’s costs of such audit, and if understated by more than
ten percent (10%), Lessor shall have the right to cancel this Lease on thirty (30) days’ notice to Lessee.

 

Addendum 59 Lessee’s Obligation
to Obtain Closure Letter

 

		a.	In furtherance of Lessee’s surrender/restoration obligations as set forth in Paragraph 7.4(c) as well as in furtherance
of Lessee’s obligations in Paragraphs 6.2 and 6.3, on or before the termination of its tenancy, Lessee shall obtain, to the
extent applicable, as described below, a “closure” or “no further action” letter , from that or those appropriate
governmental agency(ies) with jurisdiction over the environmental remediation of the Premises. Lessee’s obligation to obtain
a “closure” or “no further action” letter shall • only apply, however, if and to the extent Lessee,
during its tenancy or occupation of the Premises (whichever is longer), has caused or is otherwise responsible for contamination
to, on, under or about the Premises (whether said contamination is to soil and/or groundwater) for which removal or remediation
is required pursuant to any applicable local, state or federal regulation, law or statute. More specifically, Lessee’s obligation
to obtain a “closure” or “no further action” letter shall apply as to those Hazardous Materials (as that
term is defined below in Addendum 59(b)) for which Lessee is, as between Lessor and Lessee, responsible (e.g., those Hazardous
Materials which were used, stored, spilled, released, and/or leached on, into, under or about the Premises during Lessee’s
tenancy or occupation, whichever is longer), and as to those Hazardous Materials which require removal and/or remediation pursuant
to applicable local, state or federal regulations, laws or statutes. For purposes of this section, a “closure” or “no
further action” letter shall mean a written confirmation from said governmental agency(ies) that all appropriate governmental
testing, remediation and removal of contaminated soil and/or groundwater on and/or which further work regarding said testing, remediation
and/or removal of contamination need be done. Should Lessee not obtain a closure or no Anther action letter by the Lease termination
date, then Lessee shall be deemed a hold over tenant as described in Addendum 60 herein.

 

    	 

    	 

    
 

		b.	As used herein, the term “Hazardous Material” means any hazardous or toxic substance, material, or waste which
is or becomes regulated by any local governmental authority, the State of California or the United States Government. The term
“Hazardous Material: includes, without limitation, any material or substance which is (i) defined as a “hazardous waste,”
“extremely hazardous waste” or “restricted hazardous waste” under Sections 25115, 25117 or 25122.7, or
listed pursuant to Section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law);
(ii) defined as a “hazardous substance” under Section 25316 of the California Health and Safety Code, Division 20,
Chapter 6.8 (Carpenter-Presley-Tanner Hazardous Substance Account Act); (iii) defined as a “hazardous material,” “hazardous
substance” or “hazardous waste” under Section 25501 of the California Health and Safety Code, Division 20, Chapter
6.95 (Hazardous Material Release Response Plans and Inventory); (iv) defined as a “hazardous substance” under Section
25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances); (v) petroleum;
(vi) asbestos; (vii) listed under Article 9 or defined as hazardous or extremely hazardous pursuant to Article II of Title 22 of
the California Administrative Code, Division.

 

Addendum 60 Holding Over

 

Paragraph 26 of the Lease shall be deleted
in its entirety and the following substituted in lieu thereof:

 

		a.	Lessee shall not hold over the Premises after the expiration or sooner termination of the Lease term without the express prior
written consent of the Lessor. Lessee shall indemnify Lessor for, and hold Lessor harmless from and against, any and all losses
or liabilities arising out of or as a result of any delay by Lessee in surrendering and vacating the Premises, including, without
limitation, (1) any claims made by any succeeding Lessee or owner based on any delay; and/or (2) any liabilities arising out of
or as a result of these claims; and, (3) Lessor’s damages should any such succeeding lessee or buyer cancel its lease or
the purchase of the Property, respectively, based upon such holding over by Lessee. For purposes of this section, a holding over
shall include, but not be limited to, soil and/or groundwater contamination of the Premises for which Lessee is obligated to remediate,
such that said contamination adversely impacts or delays the subsequent leasing or sale of the Premises. A hold over by Lessee
based on contamination of the Premises shall be deemed to be extinguished by the first to occur of either: (1) Lessor’s leasing
and/or sale of the Premises at that prevailing market value as though the Premises were not impacted by contamination; or (2) Lessee’s
obtainment of a closure or no further action letter as described in Addendum 59(a).

 

		b.	If possession of the Premises is not surrendered to Lessor on the expiration or sooner termination of the Lease term, in addition
to any other rights and remedies of Lessor hereunder or at law or in equity, none of which shall be deemed to be waived by Lessor
pursuant to this paragraph, Lessee shall pay to Lessor for each month or portion thereof during which Lessee holds over in the
Premises a sum equal to one hundred fifty percent (150%) of the Base Rent in effect for the last month of the Lease term in addition
to any other adjustments required under the Lease. If any tenancy is created by Lessee’s holding over in the Premises, the
tenancy shall be on all of the terms and conditions of this lease, except that rent shall be increased as set forth above and the
tenancy shall be a month-to-month tenancy. Nothing in this Paragraph shall be deemed to permit Lessee to retain possession of the
Premises after the expiration or sooner termination of the Lease term.

 

    	 

    	 

    
 

Addendum 61. Proposition 13 Protection:

 

Real Property Taxes shall not include,
during the first five (5) years of the Term, any increase in Real Property Taxes which results solely from a reassessment of the
• Premises as the result of a sale of the Premises, but only where such reassessment occurs during the first five (5) years
of the Term. However, in the event of such an increase, Real Property Taxes shall thereafter include an estimate of any increases
in Real Property Taxes which would have occurred absent such a sale, • refinancing or activity. It is specifically understood
and agreed that Lessee shall be responsible for all Real ‘ Property Taxes after the 5th year or during the option period,
including any Real Property Taxes resulting from such a reassessment during the first five (5) years of the Term.

 

	Lessor:	Lessee:
	 	 
	
        Jonda Hawthorne, LLC, a California

        Limited Liability Company
	DBA Distribution Services, Inc., a New Jersey Corporation
	 	 	 
	By:	KAR3 Properties Limited Partnership	 
	 	A Delaware Limited Partnership, Member	 
	By:	AKG3 Properties, LLC, a California	 
	 	Limited Liability Company, General Partner	 
	 	 	 
	By:	/s/ Aliza Karney Guren	 	By:	/s/ Paul Pollara
	 	Aliza Karney Guren, Member	Paul Pollara
	 	 	 
	 	 	 
	 	 	 	 	 

 

Jonda Hawthorne, LLC a California

Limited Liability Company

By: Kerney Management Company, Manager

 

 

		By:	/s/ Aliza Karney Guren

Aliza Karney Guren, CEO

 

    	 

    	 

    
 

 

 

 

    	 

    	 

    
 

FIRST
AMENDMENT

TO

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE — NET

[2705 W.
El Segundo Blvd.]

 

 

THIS FIRST AMENDMENT TO STANDARD INDUSTRIAL/
COMMERCIAL MULTI-TENANT LEASE — NET (“Amendment”) is made as of January 28, 2010, between JONDA HAWTHORNE, LLC,
a California limited liability company (“Lessor”), and DBA DISTRIBUTION SERVICES, INC., a New Jersey corporation (“Lessee”),
with reference to the following facts:

 

A.               
Lessor and Lessee are parties to that certain Standard Industrial/Commercial Multi-Tenant Lease – Net dated
as of February 25, 2008 and Addendum and Arbitration Agreement attached thereto (collectively the “Original Lease”),
for those certain premises located at the street address of 2705 W. El Segundo Blvd., Hawthorne, CA 90250 (the “Premises”),
for a term that is presently scheduled to expire on February 28, 2013.

 

B.                
Lessor and Lessee are also parties to that certain Standard Industrial/Commercial Multi-Tenant Lease — Net
dated as of March 15, 2004 and Addendum and Arbitration Agreement attached thereto (the “Original 2701 Lease”), as
amended by the First Amendment to Lease dated February 25, 2008 (the “First Amendment”) and Second Amendment to Lease
dated March 26, 2009 (the “Second Amendment”), as further amended that the Third Amendment dated as of the date hereof,
for those certain premises located at the street address of 2701 W. El Segundo Blvd., Hawthorne, CA 90250 (the “2701 Premises”),
for a term that is presently scheduled to expire on February 28, 2013. The Original 2701 Lease, First Amendment and Second Amendment
are collectively referred to as the “2701 Lease Agreement”.

 

C.                
The City of Hawthorne has required that the sprinkler system in the Premises and the 2701 Premises be upgraded, Golden
State Fire Protection, Inc. (“Golden State”) has submitted a bid dated January 4, 2010 to perform the sprinkler upgrade
work (the “Sprinkler Work”), which bid is acceptable to Lessor and Lessee. The cost of the Sprinkler Work as set forth
in the bid is $167,200, allocable $83,600 to the Premises and $83,600 to the 2701 Premises.

 

D.               
Lessee has requested that Lessor engage Golden State to perform the Sprinkler Work, and that Lessor bear a portion
of the cost of, and also finance for Lessee’s benefit a portion of the cost of, the Sprinkler Work. Lessor is agreeable to
the foregoing, in consideration for Lessee’s agreement to an extension of the Original Term and the other terms and conditions
set forth in this Amendment.

 

E.                
Defined terms used in this Amendment shall have the meanings set forth in the Lease Agreement, unless otherwise expressly
provided herein.

 

NOW, THEREFORE, for valuable consideration,
the receipt and adequacy of which are hereby acknowledged by the parties, the parties hereto agree as follows:

 

    	 

    	 

    
 

 

1.                 
Lease Term Extension. The Original Term is hereby extended for an additional three (3) years, said three (3)
year period to commence on March 1, 2013 and end on February 29, 2016. The monthly Base Rent payable by Lessee during the three
(3) year period shall be equal to the scheduled monthly Base Rent payable during February 2013 plus a CPI increase to take effect
on March 1, 2013, and another CPI increase to take effect on September 1, 2014, both increases to be in accordance with the methodology
set forth in Addendum Paragraph 53, except that: (i) the Increase Dates for the three (3) year period shall be March 1, 2013 and
September 1, 2014, respectively; (ii) the Base Comparison Months for the three (3) year period shall be December 2011 and December
2012, respectively; (iii) the Base Rent increase to take effect on March 1, 2013 shall not be less than three percent (3%) nor
more than six percent (6%) greater than the scheduled Base Rent in effect during February 2013; and (iv) the Base Rent increase
to take effect on September 1, 2014 shall not be less than four and one-half percent (41/2%) nor more than nine percent (9%) greater
than the scheduled Base Rent in effect during August 2014. Lessee shall continue to pay through February 29, 2016, in addition
to monthly Base Rent, all categories of expenses that Lessee was responsible for payment of during the Original Term. Lessee shall
have no right or option to extend or renew its rental of the Premises beyond February 29, 2016, and Addendum Paragraph 55 of the
Original Lease shall be of no further force or effect.

 

2.                 
Sprinkler Work Cost. Lessor shall contract with Golden State to perform the Sprinkler Work in the Premises.
Concurrently with Lessee’s execution of this Amendment, Lessee shall deliver to Lessor a check payable to Golden State in
the amount of $20,000, representing a portion of the $83,600 cost of the Sprinkler Work to be performed in the Premises. Lessor
shall be responsible for payment to Golden State of the remaining $63,600 cost of the Sprinkler Work to be performed in the Premises,
except that Lessee shall reimburse Lessor for $38,600 of said remaining cost, plus interest on the unpaid balance at the rate of
seven percent (7%) per annum, by making seventy-two (72) equal monthly payments to Lessor of $658.09, with the first monthly installment
due March 1, 2010 and the final monthly installment due February 1, 2016. Each such installment shall be due and payable on the
first day of the calendar month along with Lessee’s regular monthly Base Rent payment, shall be deemed “Rent”
for all purposes of the Lease Agreement, and shall be subject to a late charge if not received by Lessor on or before the tenth
(10th) day of each calendar month. Should the term of Lessee’s rental of the Premises from Lessor terminate prior to February
1, 2016 for any reason, then the unpaid balance of said $38,600 obligation (plus interest on the unpaid balance at the rate of
seven percent (7%) per annum) shall become immediately due and payable by Lessee to Lessor in a lump sum. The monthly payments
due from Lessee under this Paragraph 2 are in addition to the monthly payments due from Lessee under Paragraph 2 of the Third Amendment
to the 2701 Lease Agreement.

 

3.                 
Cross-Default. A Default by Lessee under this Amendment or the Original Lease shall, at the option of Lessor,
constitute a Default by Lessee under the 2701 Lease Agreement and the Third Amendment thereto; a Default by Lessee under the 2701
Lease Agreement or the Third Amendment thereto shall, at the option of Lessor, constitute a Default by Lessee under this Amendment
and the Original Lease.

 

    	2

    	 

    
 

 

4.                 
No Brokers. Lessee represents and warrants to Lessor that no broker or finder has been engaged by Lessee in
connection with the transaction contemplated by this Amendment. Lessee agrees to pay any and all claims made by any other broker
or finder who asserts that it was engaged by Lessee in connection with the negotiation, execution or consummation of this Amendment.

 

5.                 
No Arbitration. The Arbitration Agreement, appearing as part of the Original Lease at Paragraph 51, shall
be of no further force or effect and no longer deemed a part of the Lease Agreement, effective immediately.

 

6.                 
No Offer. This Amendment shall not be binding until executed and delivered by both parties. This Amendment
shall not be relied upon by any other party, individual, corporation, partnership or other entity as a basis for terminating its
Lease with Lessor.

 

7.                 
Entire Agreement. The Original Lease, as amended by this Amendment, represents the entire agreement between
the parties, superseding all prior oral, written and electronic understandings and agreements. This Amendment may not be amended
except in writing signed by all parties. In the event of any conflict between the Original Lease and this Amendment, this Amendment
shall control.

 

8.                 
Ratification. Except as otherwise specifically provided in this Amendment, all of the terms, definitions,
covenants and conditions of the Original Lease Agreement are hereby ratified, confirmed and remain in full force and effect, and
are incorporated into this Amendment, and shall be applicable to Lessee’s rental of the Premises through February 29, 2016.

 

9.                 
Separate Counterparts., Signature Deliveries. This Amendment may be executed in one or more separate counterparts,
each of which, when so executed, shall be deemed to be an original. Such counterparts shall together constitute and be one and
the same instrument. Further, either party may deliver its signature hereon via facsimile or electronic (PDF) transmission, and
any such signature so delivered shall be binding on that party.

 

 

 

 

[SEE SIGNATURE PAGE ATTACHED HERETO >>>]

 

    	3

    	 

    
 

IN WITNESS WHEREOF, this Amendment is made
as of the date first written above.

 

	LESSOR:	 	JONDA HAWTHORNE, LLC,
	 	 	a California limited liability company
	 	 	 
	 	 	By its Manager:
	 	 	 
	 	 	 	Karney Management Company
	 	 	 	a California corporation
	 	 	 
	 	 	 	By:	/s/ Aliza K. Guren
	 	 	 	 	Aliza K. Guren
	 	 	 	 	Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	LESSEE:	 	DBA DISTRIBUTION SERVICES, INC.,
	 	 	a New Jersey corporation
	 	 	 
	 	 	By:	/s/ James C. Eagen
	 	 	Name:	James C. Eagen
	 	 	Title:	President
	 	 	 	 
	 	 	 
	 	 	 
	 	 	By:	/s/ Michael Capezza
	 	 	Name:	Michael Capezza
	 	 	Title:	Secretary
	 	 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 	 	 

 

    	4

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