Document:

EX-10.1

 Exhibit 10.1 

SEVENTH AMENDMENT TO LEASE 

This Seventh Amendment to Lease (“Amendment”) is entered into, and dated for
reference purposes, as of July 24, 2018 (the “Execution Date”) by and between PACIFICA ENCINITAS BEACH, LLC, a California limited liability company, PACIFICA REAL ESTATE V, LLC,
a California limited company, SR32 SAN DIEGO PORTFOLIO, LLC, a California limited liability company, FORCE FRANKLIN I. L.P., a California limited partnership, FORCE 10580, LLC, a California limited liability
company, and ARKA MIRAMAR II, L.P., a California limited partnership (collectively, “Lessor”), and ONE STOP SYSTEMS, INC., a Delaware corporation
(“Lessee”), with reference to the following facts: 
 Recitals 

A.    Lessor and Lessee are the parties to that certain written lease which is comprised of the following
(collectively, the “Existing Lease”): that certain written Standard Industrial/ Commercial Multi-Tenant Lease – Net, dated as of October 21, 2004 (the “Original
Lease”) entered into by and between Lessor’s predecessor-in-interest (David Wen) and Lessee’s predecessor-in-interest (One Stop Systems, Inc., a California corporation) (which superseded a prior lease dated October 20, 2004 entered into by and between Lessor’s earliest predecessor-in-interest (JJB Real Estate Enterprises, LLC) and One Stop Systems, Inc., a California corporation), as amended by that certain Amendment #1 dated as of
October 6, 2008 (“Amendment #1”), as further amended by that certain Amendment #2 dated as of November 4, 2008 (“Amendment #2”), as further amended
by that certain Amendment #3 dated as of August 8, 2009 (“Amendment #3”), as further amended by that certain Amendment #4 dated as of August 18, 2011
(“Amendment #4”), as further amendment by that certain Amendment #5 dated as of October 3, 2013 (“Amendment #5”), and as further amended by
that certain Sixth Amendment to Lease dated as of August 30, 2017 (“Sixth Amendment”) for certain premises described therein consisting of approximately 17,911 rentable square feet, and commonly
known as Suites 100, 110, 120 and 130 (and including a second story area known as Suite 200) (collectively, the “Existing Premises”) of the building located at 2235 Enterprise Street, Escondido, California (the
“Building”), as more particularly described in the Existing Lease. 

B.    Lessor and Lessee desire to provide for (i) the lease to the Lessee of the Expansion Premises
(defined below) for the term specified herein; (ii) the further extension of the term for the Existing Premises; and (iii) other amendments of the Existing Lease as more particularly set forth below. 

Agreement 

NOW, THEREFORE, in consideration of the foregoing, and of the mutual covenants set forth herein and of other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 

1.    Scope of Amendment; Defined Terms. Except as expressly provided in this Amendment, the
Existing Lease shall remain in full force and effect. Should any inconsistency arise between this Amendment and the Existing Lease as to the specific matters which are the subject of 

  
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this Amendment, the terms and conditions of this Amendment shall control. All capitalized terms used in this Amendment and not defined herein shall have the meanings set forth in the Existing
Lease unless the context clearly requires otherwise; provided, however, that the term “Lease” as used herein and, from and after the Execution Date, in the Existing Lease shall refer to the Existing Lease as modified by this Amendment.

 2.    Common Area Operating Expenses. Notwithstanding any provision to the contrary in the
Existing Lease (including, but not limited to, Paragraph 4 of Amendment #5), Lessee shall pay Lessee’s Share of Common Area Operating Expenses pursuant to the terms of Paragraph 4.2 of the Original Lease commencing on September 1, 2018 and
continuing through the remainder of the Term, as extended herein. The Lessee’s Share for the Existing Premises is thirty-eight and 25/100 percent (38.25%). Common Area Operating Expenses are currently estimated to be $0.31 per rentable
square foot per month. Lessee understands that this is an estimate only and the actual amount may vary from the estimate. 

3.    Extension of Term. Lessor and Lessee acknowledge and agree that, notwithstanding any
provisions of the Existing Lease to the contrary, the current Term pursuant to the Existing Lease will expire on August 31, 2018, and that the Term of the Lease of the Existing Premises is hereby further extended for the period of seventy two
(72) months (the “Extended Term”) commencing on September 1, 2018 (the “Extension Commencement Date”) and expiring August 31, 2024 (hereafter, the “Termination
Date”), unless sooner terminated pursuant to the terms of the Lease. This extension is with respect to the entire Premises. This extension is further conditioned upon and subject to the same conditions, terms, covenants
and agreements contained in the Existing Lease except as otherwise provided in this Amendment. Lessor and Lessee acknowledge and agree that this Amendment provides all rights and obligations of the parties with respect to extension of the current
Term, whether or not in accordance with any other provisions, if any, of the Existing Lease regarding renewal or extension, and any such provisions, options or rights for renewal or extension provided in the Existing Lease are hereby deleted as of
the Execution Date. 
 4.    Base Rent for Existing Premises. Lessee shall continue to pay
monthly Base Rent with respect to the Existing Premises in the amount set forth in the Existing Lease up to and including the day immediately prior to the Extension Commencement Date. Effective on and after the Extension Commencement Date, the
amount of monthly Base Rent due and payable by Lessee for the Existing Premises shall be as follows: 
  

					
	 Period from/to
	  	Monthly Base Rent	 
	 September 1, 2018 – August 31, 2019
	  	$	17,015.45	 
	 September 1, 2019 – August 31, 2020
	  	$	17,525.91	 
	 September 1, 2020 – August 31, 2021
	  	$	18,051.69	 
	 September 1, 2021 – August 31, 2022
	  	$	18,593.24	 
	 September 1, 2022 – August 31, 2023
	  	$	19,151.04	 
	 September 1, 2023 – August 31, 2024
	  	$	19,725.57	 

 Notwithstanding anything in this Amendment to the contrary, for so long as Lessee is not in Breach under the
terms of the Lease, the Base Rent payable for the Existing Premises as scheduled above shall be fully abated for the first full calendar month of the Extended Term (September 2018). Lessee shall continue to pay Lessee’s Share of Common Area
Operating Expenses during such abatement period. 

  
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 The abatement set forth in this section shall be considered an Inducement Provision subject
to the provisions of Paragraph 13.3 of the Original Lease. 
 5.    Lease of Expansion Premises.

 (a)    Lease; Definition of Expansion Premises. Lessor hereby leases to Lessee and Lessee
hereby leases from Lessor the Expansion Premises (defined below) upon and subject to all of the terms, covenants and conditions of the Existing Lease except as expressly provided herein. The “Expansion Premises” is Suite 140 and 150
of the Building as shown on Exhibit A hereto. Lessor and Lessee hereby agree that Expansion Premises is conclusively presumed to be 6,121 rentable square feet in the aggregate (based on BOMA Standard Method of Measuring Floor Area in
Industrial Buildings (ANSI Z65.2-2012) Drip Line-Method B). From and after the Expansion Premises Commencement Date (defined below), the term “Premises” shall mean the Expansion Premises and
the Existing Premises, except as otherwise provided herein. 
 (b)    Commencement; Term; Early
Possession. Notwithstanding any provision of the Existing Lease to the contrary, the following provisions shall govern the Expansion Premises; 

(1)     Commencement Date; Term. Effective as of the Expansion Premises Commencement Date (defined
below), the Expansion Premises shall be a part of the Premises and shall be subject to, and Lessee shall observe and perform, all the conditions and covenants applicable to Lessee under this Lease. The “Expansion Premises Commencement
Date” (also referred to as the “EPCD”) shall mean the earlier of (a) Substantial Completion of the Initial Lessee Improvement Work (as such terms are defined in Section 5(c)(2) below) and (b) February 1,
2019. On and after the EPCD, Lessee shall pay Base Rent and Lessee’s Share of Common Area Operating Expenses with respect to the Expansion Premises, as set forth in this Section 5. The Term of this Lease of the Expansion Premises
(“Expansion Premises Term”) shall continue until the Termination Date. In the event the EPCD occurs on a date other than the first day of a calendar month, the Base Rent and Lessee’s Share of Common Area Operating Expenses for
the Expansion Premises for such month shall be prorated for the remaining number of days (including the EPCD) in the calendar month in which the EPCD occurs. Within thirty (30) days after the EPCD, Lessee and Lessor shall enter into a
memorandum (the form of which is attached as Exhibit B hereto) confirming the actual EPCD and the Base Rent schedule. If Lessee fails to enter into such memorandum, then the EPCD and NPED shall be the dates designated by Lessor in such
memorandum. 
 (2)    Early Possession and Delayed Delivery. Upon the current lessee’s
vacation of the Expansion Premises and subject to Lessee’s delivery of the additional Security Deposit, prepaid rent and updated certificates of insurance covering the Expansion Premises, Lessee shall be granted early possession of the
Expansion Premises (the date the Lessor delivers possession of the Expansion Premises being the “Early Possession Date”) in order to allow Lessee to begin its Initial Lessee Improvement Work (defined below). Early possession shall
be without payment of Base Rent or Lessee’s Share of Common Area Operating Expenses for the Expansion Premises, but all other terms of the Lease, including Lessee’s indemnification obligations, insurance obligations and maintenance
obligations shall be in effect during such period. For the avoidance of doubt, Lessor and Lessee acknowledge and agree that the Expansion Premises are currently occupied by Christian Audio, LLC, which will be relocating to another premises in the
Project. The Early Possession Date is estimated to be September 25, 2018. If the Early Possession Date has not occurred by October 1, 2018 due the failure of Christian Audio, LLC to vacate the

  
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Expansion Premises, Lessor shall not be subject to any liability for failure to deliver possession to Lessee, however, the EPCD will be deferred one (1) day for each day Lessor has not
delivered possession of the Expansion Premises after October 1, 2018. 
 (c)    Condition of the
Expansion Premises, Alterations by Lessee. 
 (1)    
AS-IS Condition. Lessor shall deliver the Expansion Space to Lessee in is “AS IS” condition, broom clean and free of debris, with the existing interior improvements in place, subject only to
the warranties set forth in Paragraph 2 of the Original Lease. Except to the extent of the Allowance described below, Lessor shall have no obligation to pay for or construct any additional improvements. 

(2)    Initial Lessee Improvements. Lessee shall be allowed to construct and install certain
initial improvements to the Premises as necessary to conduct its business (the “Initial Lessee Improvements”), consisting of Utility Installations and Alterations, as are approved in writing by Lessor (which approval will not be
unreasonably withheld, conditioned or delayed) and subject to all of the requirements and conditions of Paragraph 7.3 of the Lease (such construction and installation is sometimes referred to as the “Initial Lessee Improvement
Work”). Lessee shall hire and contract with all architects, engineers and contractors as are necessary to perform the Initial Lessee Improvement Work. To the extent that the actual cost of the Initial Lessee Improvement Work exceeds the
Allowance set forth below, Lessee shall pay any such excess cost. Should the Lessee’s specific use or the Initial Lessee Improvements trigger any governmental compliance requirements (including but not limited to requirements to comply with the
Americans with Disabilities Act), Lessee shall be solely responsible for the costs associated with satisfying such requirements. As soon as practicable following the full execution of the Amendment, the Lessee shall provide a complete description of
the Initial Lessee Improvements, including a description of finishes, to Lessor for Lessor’s approval. In the event Lessor disapproves of the Initial Lessee Improvements, Lessor shall provide notice to Lessee of such disapproval with a
reasonably detailed description of the grounds for such disapproval no later than five (5) business days following Lessor’s receipt of the description of the Initial Lessee Improvements. In the event Lessor disapproves of such Initial
Lessee Improvements, Lessee shall correct any deficiencies and resubmit the drawings to Lessor for approval. The procedure set forth herein shall be repeated until Lessor approves of the Initial Lessee Improvements. Notwithstanding the foregoing,
failure of Lessor to respond within any such five (5) business day period shall be deemed to be Lessor’s approval. After receiving Lessor’s approval and after Lessor has delivered possession of the Expansion Premises to Lessee, Lessee
shall proceed with the Initial Lessee Improvement Work expeditiously, continuously, and efficiently to completion. “Substantial Completion” of the Initial Lessee Improvements shall be mean the completion of the Initial Lessee
Improvement Work pursuant to any approved plans and receipt of all necessary governmental approvals for legal occupancy of the Expansion Premises, notwithstanding that minor details of construction, mechanical adjustments or decorations which do not
materially interfere with Lessee’s use of the Expansion Premises remain to be performed (items normally referred to as punch list items). 

(d)    Base Rent for Expansion Premises. In addition to the Base Rent due with respect to the
Existing Premises, Lessee shall pay Base Rent for the Expansion Premises, which shall be payable at the time and in the manner required for Base Rent in the Existing Lease. The amount of Base Rent due and payable by Lessee for the Expansion Premises
on the EPCD and monthly 

  
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thereafter through the Termination Date of the Expansion Premises Term shall be as follows: 
  

					
	 Period from/to
	  	Monthly Base Rent	 
	 EPCD – August 31, 2019
	  	$	5,814.95	 
	 September 1, 2019 – August 31, 2020
	  	$	5,989.40	 
	 September 1, 2020 – August 31, 2021
	  	$	6,169.08	 
	 September 1, 2021 – August 31, 2022
	  	$	6,354.15	 
	 September 1, 2022 – August 31, 2023
	  	$	6,544.78	 
	 September 1, 2023 – August 31, 2024
	  	$	6,741.12	 

 Lessee shall prepay Lessor the first month’s Base Rent for the Expansion Premises upon execution of this
Amendment. For so long as Lessee is not in Breach under the terms of the Lease, the Base Rent payable for the Expansion Premises as scheduled above shall be fully abated for the second (2nd),
third (3rd) and fourth (4th) full calendar months of the Expansion Premises Term, for a total of three (3) months. Lessee shall continue
to pay Lessee’s Share of Common Area Operating Expenses for the Expansion Premises during such abatement period. The abatements set forth in this section shall be considered an Inducement Provision subject to the provisions of Paragraph 13.3 of
the Original Lease. 
 (e)    Lessee’s Share for Expansion Premises. With respect to
additional rent payable for the Expansion Premises, on and after the EPCD, Lessee’s Share of Common Area Operating Expenses for the Expansion Premises shall be thirteen and 08/100 percent (13.08%). 

(f)    Parking. Notwithstanding any other provision of the Existing Lease to the contrary, on and
after the EPCD, with respect to the Expansion Premises, Lessee shall have the right to use, on an unreserved basis, an additional fourteen (14) parking spaces, for a total of fifty four (54) unreserved parking spaces for the entire
Premises. 
 (g)    Insurance. Lessee’s insurance required under Paragraph 8 of the Original
Lease (“Lessee’s Insurance”) shall include the Expansion Premises. Lessee shall provide Lessor with a certificate of insurance, in form and substance satisfactory to Lessor and otherwise in compliance with Paragraph 8 of the
Lease, evidencing that Lessee’s Insurance covers the Existing Premises and the Expansion Premises, upon delivery of this Amendment, executed by Lessee, to Lessor, and thereafter as necessary to assure that Lessor always has current certificates
evidencing Lessee’s Insurance. 
 6.    Allowance. Lessor shall provide an allowance not to
exceed Three Hundred Sixty Thousand Four Hundred Eighty and no/100 Dollars ($360,480.00) for all third party costs related to the design, permitting and construction of the Initial Lessee Improvements, as described above and other Alterations to the
Existing Premises as approved by Lessor (which approval will not be unreasonably withheld, conditioned or delayed) pursuant to the terms of the Lease (the “Allowance”), including, but not limited to, the following costs:
(a) payments to Lessee’s contractors for labor, material, equipment, and fixtures; (b) fees paid to Lessee’s designers, architects and other consultants; (c) taxes, fees, charges, and levies by governmental and
quasi-governmental agencies for permits or for inspections; (d) utilities incurred in the course of construction (but not to exceed 5% of the Allowance); (e) premiums for builder’s risk insurance; (f) costs incurred for the management
and administration of construction; and (g) costs to correct 

  
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any defect in the existing improvements. Any portion of the Allowance not used by Lessee by February 1, 2020 shall revert to the Lessor. The Allowance shall be paid in progress payments on a
monthly basis as the Initial Lessee Improvement Work and other Alterations progresses in an amount not to exceed ninety percent (90%) of the Allowance. The progress payments shall be paid to Lessee on a reimbursement basis within 20 days after
Lessee presents draw requests or invoices that detail the work performed and showing that Lessee has incurred design, permitting and/or construction costs in an amount at least equal to the requested progress payment, subject to Lessor’s
inspection to confirm that such work has been performed. The remaining balance of the Allowance shall be payable to Lessee after Substantial Completion of all work, conditioned upon receipt of the following: 

(i)    Lessor’s inspection and approval of the Initial Lessee Improvements and other Alterations,
including (if applicable), a written certification from Lessor’s original roofing contractor stating that all roof penetrations have been properly sealed and the roof warranty shall continue in full force and effect; 

(ii)    Copies of all paid invoices, including a final summary of all costs for the Initial Lessee
Improvements and other Alterations, and a copy of a full set of plans and details for the Initial Lessee Improvements and other Alterations as approved by Lessor; 

(iii)    An “unconditional waiver and release upon final payment” covering work completed; and

 (iv)    Copies of certificates of occupancy, signed inspection cards, permits and/or clearances
required by all governing agencies, and reasonable written proof that all fees relating to the Initial Lessee Improvements and other Alterations have been paid by Lessee. 

The Allowance shall be considered an Inducement Provision subject to the provisions of Paragraph 13.3 of this Lease. 

7.    Increase in Security Deposit. Notwithstanding any provision of the Existing Lease to the
contrary, upon execution of this Amendment, Lessee shall pay Lessor an amount equal to $17,050.00 to increase the Security Deposit specified in the Original Lease from $9,037.00 to the amount of $26,087.00 for the entire Premises. 

8.    Right of First Offer. Lessor grants to Lessee a right of first offer (“First-Offer
Right”) with respect to any other space in the Building (“First-Offer Space”), including space subject to any lease existing as of the Execution Date (excepting only those extension options existing as of the Execution Date).
Lessee’s First-Offer Right shall be on the terms and conditions set forth in this Section 8. 

(a)    Procedure of Lessor’s Offer. Lessor shall provide Lessee with written notice
(“First-Offer Notice”) from time to time when Lessor determines that any First-Offer Space will become available for lease to third parties. Lessor shall provide the First-Offer Notice to Lessee within one hundred eighty (180) days
before the First-Offer Space will be available for lease. The First-Offer Notice shall: 

(1)    Describe the First-Offer Space that will become available for lease

  
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(“Specific First-Offer Space”); and 

(2)    State all the material terms under which Lessor intends to offer such space to other prospective
lessees, including the rental rate, free or abated rent, and any tenant improvement allowance. 

(b)    Procedure for Lessee’s Acceptance. If Lessee wishes to exercise Lessee’s
First-Offer Right with respect to the Specific First-Offer Space, Lessee shall, within ten (10) business days after delivery of the First-Offer Notice to Lessee, deliver notice to Lessor of Lessee’s intention to exercise its First-Offer
Right with respect to all the Specific First-Offer Space. Lessee must elect to exercise its First-Offer Right, if at all, only with respect to all the space offered by Lessor to Lessee at any particular time, and Lessee may not elect to lease only a
portion of that space. 
 (c)    Effect of Lessee’s Failure to Exercise First-Offer Right.
If Lessee does not exercise its First-Offer Right within the response period specified in subsection 8(c), the First-Offer Right shall terminate for the Specific First-Offer Space and Lessor shall be free to lease that space to anyone on any terms
at any time during the Lease Term, without any obligation to provide Lessee with a further right to lease that space unless such space shall become available again during the Term. 

(d)    Restrictions on First-Offer Right. The First-Offer Right shall be personal to the originally
named Lessee and shall be exercisable only by the originally named Lessee (and not any assignee, sublessee, or other transferee of Lessee’s interest in this Lease). The originally named Lessee may exercise the First-Offer Right only if that
Lessee occupies the entire Premises as of the date of the First-Offer Notice. Lessee shall not have the right to lease First-Offer Space if Lessee is in Default under this Lease as of the date of the attempted exercise of the First-Offer Right by
Lessee or (as Lessor’s option) as of the scheduled date of delivery of the Specific First-Offer Space to Lessee. 

(e)    Delivery of First-Offer Space. If Lessee timely and validly exercised the First-Offer Right,
Lessor shall deliver the Specific First-Offer Space to Lessee on the date (“Delivery Date”) that such Specific First-Offer Space is available. Lessor shall not be liable to Lessee or otherwise be in default under this Lease if
Lessor is unable to deliver the Specific First-Offer Space to Lessee on the projected Delivery Date due to the failure of any other lessee to timely vacate and surrender to Lessor the Specific First-Offer Space or any portion of it. Lessee agrees to
use its commercially reasonable efforts to enforce its right to possession of the Specific First-Offer Space against such other lessee, including institution of legal proceedings. 

(f)    Terms and Conditions Applicable to First-Offer Space. If Lessee timely and validly exercises
the First-Offer Right, then beginning on the Delivery Date and continuing for the balance of the Term (including extensions thereof): 

(1)    The Specific First-Offer Space shall be part of the Premises under this Lease (so that the term
“Premises” in this Lease shall refer to the space in the Premises immediately before the Delivery Date plus the Specific First-Offer Space); and 

(2)    Lessee’s Share of Common Area Operating Expenses shall be

  
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adjusted, in accordance with Paragraph 1.6 of the Original Lease, to reflect the increased rentable area of the Premises. 

Lessee’s lease of the Specific First-Offer Space shall be on the same terms and conditions as affect the original Premises from time to
time, except as otherwise provided in this Section 8. Rent and all other economic terms applicable to the Specific First-Offer Space shall be as set forth in the First-Offer Notice. Lessee’s obligation to pay Rent (including Lessee’s
Share of Common Area Operating Expenses) with respect to the Specific First-Offer Space shall begin on the date that is ninety (90) days after the Delivery Date, in order to allow Lessee to make improvements to such Specific First-Offer Space.
The Specific First-Offer Space shall be leased to Lessee in its “as-is” condition. Lessor shall not be required to construct any improvements in, or contribute any improvement allowance for, the
Specific First-Offer Space. 
 (g)    Confirmation of Terms. If Lessee timely and validly
exercises the First-Offer Right, Lessor and Lessee shall, within fourteen (14) days after Lessor’s delivery of the Specific First-Offer Space to Lessee, confirm in writing the addition of the Specific First-Offer Space to the Premises on
the terms and conditions set forth in this Section 8. The written confirmation shall confirm: 

(1)    The actual Delivery Date; 

(2)    The rentable area of the Premises with the addition of the Specific First-Offer Space; 

(3)    The percentage that constitutes Lessee’s Share, as adjusted in accordance with this
Section 8 to reflect the increased rentable Area of the Premises; 
 (4)    The rental
commencement date for the Specific First-Offer Space; and 
 (5)    Any other term that either party
requests be confirmed with respect to the Expansion Space. 
 9.    Brokers. Notwithstanding any
other provision of the Existing Lease to the contrary, Lessee represents and warrants to Lessor that Hughes Marino, Inc. (“Lessee’s Broker”) is the sole broker that negotiated and represented Lessee concerning this Amendment.
Lessee hereby indemnifies and agrees to protect, defend and hold Lessor harmless from and against any claims of brokerage commissions arising out of any discussions or negotiations allegedly had by the Lessee with any other broker in connection with
this Amendment. Notwithstanding any other provision of the Existing Lease to the contrary, Lessor represents and warrants to Lessee that RAF Pacifica Group is the sole broker that negotiated and represented Lessor concerning this Amendment. Lessor
hereby indemnifies and agrees to protect, defend and hold Lessee harmless from and against any claims of brokerage commissions arising out of any discussions or negotiations allegedly had by the Lessor with any other broker in connection with this
Amendment. Lessor shall pay to Lessee’s Brokers for the brokerage services rendered by Lessee’s Broker in connection with the Amendment the following amounts: an amount equal to four percent (4%) of total Base Rent payable for the first 60
months of the Extended Term and the Expansion Premises Term (net of the 

  
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abatements set forth herein), plus two percent (2%) of the total Base Rent payable for the remaining months of the Extended Term and the Expansion Premises Term. Such amounts shall be paid fifty
percent (50%) upon full execution of this Amendment and fifty percent (50%) on the Extension Commencement Date. The foregoing obligations of Lessee and Lessor shall survive the expiration or sooner termination of the Lease. 

10.    Time of Essence. Without limiting the generality of any other provision of the Lease, time
is of the essence to each and every term and condition of this Amendment. 
 11.    Attorneys’
Fees. Each party to this Amendment shall bear its own attorneys’ fees and costs incurred in connection with the discussions preceding, negotiations for and documentation of this Amendment. In the event any party brings any suit or other
proceeding with respect to the subject matter or enforcement of this Amendment or the Lease as amended, the parties acknowledge and agree that the provisions of Section 31 of the Lease shall apply. 

12.    Effect of Headings; Recitals: Exhibits. The titles or headings of the various parts or
sections hereof are intended solely for convenience and are not intended and shall not be deemed to or in any way be used to modify, explain or place any construction upon any of the provisions of this Amendment. Any and all Recitals set forth at
the beginning of this Amendment are true and correct and constitute a part of this Amendment as if they had been set forth as covenants herein. Exhibits, schedules, plats and riders hereto which are referred to herein are a part of this Amendment.

 13.    Entire Agreement; Amendment. This Amendment taken together with the Existing Lease,
together with all exhibits, schedules, riders and addenda to each, constitutes the full and complete agreement and understanding between the parties hereto and shall supersede all prior communications, representations, understandings or agreements,
if any, whether oral or written, concerning the subject matter contained in this Amendment and the Lease, as so amended, and no provision of the Lease as so amended may be modified, amended, waived or discharged, in whole or in part, except by a
written instrument executed by all of the parties hereto. 
 14.    Disclosure Regarding Certified
Access Specialist. Pursuant to California Civil Code Section 1938, Lessor hereby notifies Lessee that as of the date of this Amendment, neither the Existing Premises nor the Expansion Premises has undergone inspection by a “Certified
Access Specialist” to determine whether the such premises meets all applicable construction-related accessibility standards under California Civil Code Section 55.53. 

15.    Authority. Each party represents and warrants to the other that it has full authority and
power to enter into and perform its obligations under this Amendment, that the person executing this Amendment is fully empowered to do so, and that no consent or authorization is necessary from any third party. Lessor may request that Lessee
provide Lessor evidence of Lessee’s authority. 
 16.    Counterparts. This Amendment may be
executed in two or more counterparts, which when taken together shall constitute one and the same instrument, and the signature of any party to any counterpart shall be deemed a signature to, and may be appended to, any other counterpart. Each
counterpart shall be equally admissible in evidence, and each original shall fully 

  
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bind each party who has executed it. The parties contemplate that they may be executing counterparts of this Amendment transmitted electronically and agree and intend that a signature delivered
electronically shall bind the party so signing with the same effect as though the signature were an original signature. 
 [Signatures are on
next page.] 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of
the date first set forth above. 
  

							
	 LESSOR:
	 	 LESSEE:

		
	 ARKA MIRAMAR II, L.P.,

a California limited partnership
	 	 ONE STOP SYSTEMS, INC.,

a Delaware corporation

				
	 By:
	 	 SMB I GROUP, L.P.,
	 		 	
		 	 a Delaware limited partnership,
	 	 By:
	 	 /s/ Steve Cooper

		 	 Its General Partner
	 		 	 Steve Cooper, President and CEO

				
	 By:
	 	 K ASSOCIATES, a California
	 	 By:
	 	 /s/ John W. Morrison Jr.

		 	 general partnership, its General Partner
	 		 	 John W. Morrison Jr.

		 		 		 	 Chief Financial Officer.

				
		 	
By:                      
                                         
 
	 		 	
		 	
                       
                                 , Partner
	 		 	

  

											
	 FORCE FRANKLIN I, L.P.,

a California limited partnership

		
	 By:
	 	 Force Franklin I, LLC

		 	 a California limited liability company

		 	 its General Partner

			
		 	 By:
	 	 ARKA Franklin I, L.P.,

		 		 	 a Delaware limited partnership

		 		 	 its Sole Member and Manager

				
		 		 	 By:
	 	 APG Partners, LLC

		 		 		 	 a Nevada limited liability company

		 		 		 	 Its General Partner

					
		 		 		 	 By:
	 	 SMB I Group, LP

		 		 		 		 	 A Delaware limited partnership

		 		 		 		 	 Its Managing Member

						
		 		 		 		 	 By:
	 	 K Associates, a California

		 		 		 		 		 	 general partnership

		 		 		 		 		 	 its General Partner

															
								
		 		 		 		 		 	 By:
	 	  
	 	
		 		 		 		 		 	 Name:
	 	  
	 	
		 		 		 		 		 	 Its:
	 	 managing general partner
	 	

  
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	 FORCE 10580, LLC,
	 		 	
	 a California limited liability company
	 		 	
				
	 By:
	 	 K Associates, a California general partnership,
	 		 	
		 	 Its sole and Managing Member
	 		 	
					
		 	 By:
	 	  
	 		 	
		 	 Name:
	 	  
	 		 	
		 	 Its:
	 	 managing general partner
	 		 	
			
	 SR32 SAN DIEGO PORTFOLIO, LLC,
	 		 	
	 a California limited liability company
	 		 	
				
	 By:
	 	  
	 		 	
		 	 Adam S. Robinson, Manager
	 		 	
			
	 PACIFICA REAL ESTATE V, LLC,
	 		 	
	 a California limited liability company
	 		 	
				
	 By:
	 	  
	 		 	
		 	 Adam S. Robinson, Manager
	 		 	
			
	 PACIFICA ENCINITAS BEACH, LLC,
	 		 	
	 a California limited liability company
	 		 	
				
	 By:
	 	  
	 		 	
		 	 Adam S. Robinson, Manager
	 		 	

  
 12 

 EXHIBIT A 

2235 Enterprise Street, Escondido, CA 
  

 

 EXHIBIT B 

EXPANSION PREMISES 

COMMENCEMENT DATE 

MEMORANDUM 
 PACIFICA
ENCINITAS BEACH, LLC, a California limited liability company, PACIFICA REAL ESTATE V, LLC, a California limited company, SR32 SAN DIEGO PORTFOLIO, LLC, a California limited liability company, FORCE FRANKLIN I. L.P., a
California limited partnership, FORCE 10580, LLC, a California limited liability company, and ARKA MIRAMAR II, L.P., a California limited partnership (collectively, “Lessor”), and ONE STOP SYSTEMS,
INC., a Delaware corporation (“Lessee”), have entered into a certain Seventh Amendment to Lease, dated as of July    , 2018 (the “Amendment”). The Exisiting Lease,
as amended by the Amendment, may be referred to as the “Lease”. 
 WHEREAS, Lessor and Lessee wish to confirm and
memorialize the Expansion Premises Commencement Date as provided in the Amendment; 
 NOW, THEREFORE, in consideration of the foregoing and
the mutual covenants contained herein and in the Amendment, Lessor and Lessee agree as follows: 

1.    Unless otherwise defined herein, all capitalized terms shall have the same meaning ascribed to them
in the Amendment and the Lease. 
 2.    The EPCD, as defined in the Amendment, is
                    . 

3.    Tenant confirms the following: 

 

	 	a.	 that it has accepted possession of Expansion Premises pursuant to the terms of the Amendment; and

  

	 	b.	 that the Lease is in full force and effect. 

4.    Base Rent Schedule for Expansion Premises. The Base Rent for the Expansion Premises is
payable according to the following schedule: 
  

					
	 Period from/to
	  	Monthly Base Rent	 
	
                   
            – August 31, 2019
	  	$	5,814.95	 
	 September 1, 2019 – August 31, 2020
	  	$	5,989.40	 
	 September 1, 2020 – August 31, 2021
	  	$	6,169.08	 
	 September 1, 2021 – August 31, 2022
	  	$	6,354.15	 
	 September 1, 2022 – August 31, 2023
	  	$	6,544.78	 
	 September 1, 2023 – August 31, 2024
	  	$	6,741.12	 

 5.    Except as expressly modified hereby, all terms and
provisions of the Lease are hereby ratified and confirmed and shall remain in full force and effect and binding on the parties hereto. 
  

							
	 LESSOR:
	 	 LESSEE:

		 		 	
	 ARKA MIRAMAR II, L.P.,
a California limited partnership
	 	 ONE STOP SYSTEMS, INC.,
a Delaware corporation

			
	 By:
	 	 SMB I GROUP, L.P.,
	 	
		 	 a Delaware limited partnership,
	 	 By:
	 	 /s/ Steve Cooper

		 	 Its General Partner
	 		 	 Steve Cooper, President and CEO

				
	 By:
	 	 K ASSOCIATES, a California
	 	 By:
	 	 /s/ John W. Morrison Jr.

		 	 general partnership, its General Partner
	 		 	 John W. Morrison Jr.

		 		 		 	 Chief Financial Officer

					
			
		 	 By:
	 	  

		 		 	                    , Partner

  

			
	 SR32 SAN DIEGO PORTFOLIO, LLC,

	 a California limited liability company

		
	 By:
	 	  

		 	 Adam S. Robinson, Manager

	
	 PACIFICA REAL ESTATE V, LLC,

	 a California limited liability company

		
	 By:
	 	  

		 	 Adam S. Robinson, Manager

	
	 PACIFICA ENCINITAS BEACH, LLC,

	 a California limited liability company

		
	 By:
	 	  

		 	 Adam S. Robinson, Manager

			
	 FORCE FRANKLIN I, L.P.,

a California limited partnership

		
	 By:
	 	 Force Franklin I, LLC

		 	 a California limited liability company

		 	 its General Partner

					
			
		 	 By:
	 	 ARKA Franklin I, L.P.,

		 		 	 a Delaware limited partnership

		 		 	 its Sole Member and Manager

					
			
		 	 By:
	 	 APG Partners, LLC

		 		 	 a Nevada limited liability company

		 		 	 Its General Partner

					
			
		 	 By:
	 	 SMB I Group, LP

		 		 	 A Delaware limited partnership

		 		 	 Its Managing Member

					
			
		 	 By:
	 	 K Associates, a California

		 		 	 general partnership

		 		 	 its General Partner

							
				
		 		 	 By:
	 	  

		 		 	 Name:
	 	  

		 		 	 Its:
	 	 managing general partner

  

			
	 FORCE 10580, LLC,

	 a California limited liability company

			
		
	 By:
	 	 K Associates, a California general partnership,

		 	 Its sole and Managing Member

					
			
		 	 By:
	 	  

		 	 Name:
	 	  

		 	 Its:
	 	 managing general partnerExhibit

Exhibit 10.1

[Portions of this Exhibit have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended.  The confidential portions of this Exhibit that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]
THIRD AMENDMENT TO 
RETAILER PROGRAM AGREEMENT  
(Sleep Number)
THIS THIRD AMENDMENT TO RETAILER PROGRAM AGREEMENT (this “Amendment”) is entered into as of June 26, 2018, and amends that certain Retailer Program Agreement, made as of January 1, 2014 (as amended, modified and supplemented from time to time, the “Agreement”), by and between Synchrony Bank (“Bank”) and Sleep Number Corporation, formerly known as Select Comfort Corporation (“Sleep Number”), and Select Comfort Retail Corporation (“SCRC” and collectively with Sleep Number, “Retailer”).  Capitalized terms used herein and not otherwise defined have the meanings given them in the Agreement.
WHEREAS, Bank and Retailer desire to extend the Term, adjust certain financial elements of the Agreement, and update the Financial Covenants, subject to the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises and subject to the terms and conditions hereinafter set forth, the parties hereby agree as follows:
		
	I.
	AMENDMENTS TO THE AGREEMENT

1.1    Elimination of Credit Review Point.  The parties agree to delete the concept of the Credit Review Point from the Agreement.  Accordingly, Section 5(b) and Section 19(b)(iii), both dealing with the Credit Review Point, are deleted in their entirety, and each marked as “Intentionally Omitted.”
1.2    New Section 5(d).  A new Section 5(d) is hereby added immediately following Section 5(c) providing as follows:
		
	(d)  
	Credit Criteria for Internet and Telephone Sales.  Bank will use commercially reasonable efforts XXXX.  Bank’s credit criteria for the Internet and telephone channels XXXX.  From time to time, Retailer may XXXX. 

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

1.3    Amendment to Section 6(a).  Section 6(a) is hereby deleted in its entirety and replaced with the following:
		
	(a)
	Bank initially will make available under the Program those credit-based promotions and corresponding Retailer Fee Percentages described on the attached Schedule 6(a). Subject to the qualifications set forth below in this  6(a), Retailer shall have the right to reduce any Retailer Fee Percentage on Schedule 6(a) (as the same may be adjusted from time to time pursuant to Section 6(c) or Section 6(e)) so as to reduce such Retailer Fee Percentage by XXXX below the Retailer Fee Percentage actually set forth on such Schedule (each such reduced rate is referred to as a “Special Discount Rate”); provided, that (i) such reduction shall be subject to the Special Discount Cap (as defined below), and (ii) for clarity, the application of XXXX reduction shall in no way result in any Retailer 

Fee Percentage being XXXX  For purposes of calculating each Special Discount Rate, such Special Discount Rate shall be carried out to two decimal places and rounded to the nearest basis point.  If, as of the end of any calendar year, Net Program Sales with respect to which one or more Special Discount Rates applied at any time during such calendar year (“Special Discount Sales”) exceed XXXX of total Net Program Sales for such period (the “Special Discount Cap”), Retailer will pay to Bank, within thirty (30) calendar days, the difference between the non-discounted Program Fees Percentages and the Special Discount Rates for the Special Discount Sales that exceed XXXX of Net Program Sales for the calendar year.  In addition, at the end of any calendar quarter, if Special Discount Sales XXXX of the Net Program Sales for the calendar year to date period, Bank and Retailer will discuss a reasonable plan to ensure the Special Discount Sales will decrease in the remaining calendar quarters of the respective calendar year in accordance with the XXXX limit on Net Program Sales.  In no event may Special Discount Sales exceed XXXX in any calendar month.
[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]
1.4    Amendment to Section 6(c).  Section 6(c) is hereby deleted in its entirety and replaced with the following:
		
	(c)
	(i) At the end of the XXXX and each XXXX thereafter, Bank and Retailer will review and evaluate the effectiveness of the Program generally (including the credit-based promotion sales mix, the overall level of sales charged to Accounts, and Account fraud and credit losses during such period), as well as the performance of each credit-based promotion during such period.  Based on such review, Bank may, after consultation with and notice to Retailer, adjust the Retailer Fee Percentages and, for any credit-based promotion, terminate such promotion or adjust the Retailer Fee Percentage applicable thereto.  In addition, Retailer acknowledges that Bank may modify, terminate, or replace one or more credit-based promotions due to changes in applicable law (including Regulation Z) or regulatory guidance.  Notwithstanding the foregoing, Bank may review and adjust the Retailer Fee Percentages applicable to internet and telephone sales at the end of the XXXX and XXXX thereafter after complying with consultation and notice requirements of this section.  As used herein XXXX means the XXXX commencing on the Effective Date and each such XXXX thereafter during the term hereof and any shorter prior from the beginning of a XXXX until the termination of this Agreement.

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]
(ii)  Within XXXX after the end of the XXXX and each XXXX thereafter, Retailer may, upon written notice to Bank (which may be made by email), request Bank to negotiate with Retailer to XXXX to provide for a XXXX with respect to each credit-based promotion with respect to XXXX, and Retailer and Bank shall thereafter negotiate in good faith to agree on such a XXXX.   If Retailer and Bank fail to so agree, XXXX shall continue in effect except as revised as otherwise provided hereunder, subject to any request made under this Section 6(c) with respect to XXXX.     
[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this 

2

Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]    

1.5    Amendment to Section 6(i).  Effective as of the end of the day on June 30, 2018, the definition of Base Twelve Month LIBOR is hereby deleted in its entirety and replaced with the following:

“Base Twelve Month LIBOR” means XXXX.

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

1.6    Amendment to Section 19(a).  Section 19(a) is hereby deleted in its entirety and replaced with the following: 

		
	(a) 
	This Agreement shall continue until the end of the day on December 31, 2023 (the “Term”).  

1.7    Amendment to Section 19(b)(xiii).  Section 19(b)(xiii) is hereby amended by deleting the first sentence and replacing it with the following: “If the Twelve Month LIBOR equals or exceeds XXXX, Retailer shall have the right to XXXX.
[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

1.8    References to Twelve Month LIBOR.  If during the Term the Twelve Month LIBOR ceases to be reported, then Bank, in its reasonable discretion, may designate an industry-accepted replacement rate, as published in The Wall Street Journal in its “Money Rates” section (or if The Wall Street Journal will cease to be published or to publish the rates, in another publication or government information source as Bank may, from time to time, reasonably specify), XXXX.

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

1.9    Amendment to Schedule 6(a).  Effective as of the end of the day on June 30, 2018, Schedule 6(a) is deleted in its entirety and replaced with the new Schedule 6(a) attached to this Amendment.

1.10    Amendment to Schedule 6(h).  Effective April 1, 2018, Schedule 6(h) is deleted in its entirety and replaced with the new Schedule 6(h) attached to this Amendment.  

1.11    Amendment to Appendix B.  Effective June 30, 2018, Appendix B is deleted in its entirety and replaced with the new Appendix B attached to this Amendment. 

II. GENERAL

3

2.1    Authority for Amendment.  Retailer represents and warrants to Bank that the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate action on the part of Retailer and upon execution by all parties, will constitute a legal, binding obligation of Retailer.
2.2    Effect of Amendment.  Except as specifically amended hereby, the Agreement, and all terms contained therein, remains in full force and effect.  The Agreement, as amended by this Amendment, constitutes the entire understanding of the parties with respect to the subject matter hereof.
2.3    Binding Effect; Severability.  Each reference herein to a party hereto shall be deemed to include its successors and assigns, all of whom shall be bound by this Amendment and in whose favor the provisions of this Amendment shall inure.  In case any one or more of the provisions contained in this Amendment shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
2.4    Further Assurances.  The parties hereto agree to execute such other documents and instruments and to do such other and further things as may be necessary or desirable for the execution and implementation of this Amendment and the consummation of the transactions contemplated hereby and thereby.
2.5    Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Utah, without regard to principles of conflicts of laws.
2.6    Counterparts.  This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one agreement.
IN WITNESS WHEREOF, the parties have caused this Third Amendment to be executed by their respective duly authorized officers to be effective as provided herein.  The parties expressly consent and agree that this Amendment may be electronically signed.  The parties agree that electronic signatures appearing on this Amendment shall be treated, for purposes of validity, enforceability and admissibility, the same as hand-written signatures.

	
		
	SYNCHRONY BANK

By:    /s/ Anthony S. Foster      

    Its:    SVP            

	SLEEP NUMBER CORPORATION
SELECT COMFORT RETAIL CORPORATION

By:    /s/ Andy Carlin         

    Its:    EVP/Chief Sales and Services Officer   

4

APPENDIX B
FINANCIAL COVENANTS

I.      FINANCIAL COVENANTS

Leverage Ratio.  Retailer shall not permit the Leverage Ratio, as of the end of any quarterly reporting period, to XXXX.

Interest Coverage Ratio.  Retailer shall not permit, as of the end of any quarterly reporting period, the Interest Coverage Ratio to be XXXX.

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

II.    REPORTING 
 
In order to establish compliance with the Financial Covenants set forth above, Retailer will use commercially reasonable efforts to deliver to Bank (i) within forty-five (45) days after the end of each of the first three (3) fiscal quarters of each fiscal year of the Retailer, a certificate, signed by the Chief Financial Officer of Retailer or Retailer’s chief accounting officer or such other officer of the Retailer as Retailer shall designate and in a form satisfactory to Bank, establishing Retailer’s compliance or non-compliance with the Financial Covenants for such fiscal quarter, and (ii) within ninety (90) days after the end of the fourth fiscal quarter of each fiscal year of the Retailer, a certificate, signed by the Chief Financial Officer of Retailer or Retailer’s chief accounting officer or such other officer of the Retailer as Retailer shall designate and in a form satisfactory to Bank, establishing Retailer’s compliance or noncompliance with the Financial Covenants for such fiscal quarter. Each certificate will include a detailed calculation illustrating the Leverage Ratio and Interest Coverage Ratio as of the end of the applicable period.  Unless otherwise specifically set forth to the contrary, all financial calculations contemplated herein shall be performed in accordance with GAAP. 

III.    DEFINITIONS

"Leverage Ratio" shall (a) have the same meaning as is ascribed to the term “Leverage Ratio” in that certain Amended and Restated Credit and Security Agreement dated as of February 14, 2018 with Sleep Number Corporation as the Borrower and U.S. Bank National Association as the Administrative Agent (the “Credit Agreement”) and (b) be determined in same the way as the Leverage Ratio is determined under the Credit Agreement.   If the definition of Leverage Ratio, or any underlying defined terms that make up the definition, are changed in the Credit Agreement, Retailer will inform Bank of any proposed changes and If Bank agrees to the proposed changes in writing, the definition of Leverage Ratio for purposes of this Agreement will change also.  Bank will not unreasonably withhold its consent to any proposed changes in the definition of Leverage Ratio.  

“GAAP” means generally accepted accounting principles applicable in the United States, consistently applied; [provided that, notwithstanding any other provision contained herein, (a) all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios referred to herein shall be made without giving effect to (i) any election under Accounting Standards Codification Section 825-10-25 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any indebtedness or other liabilities of Retailer or any of its subsidiaries at “fair value”, as defined therein, or (ii) any treatment of indebtedness in respect of convertible debt instruments under Financial Accounting Standards Codification Subtopic 470-20 (or any other Accounting Standards Codification or Financial Accounting Standard having a similar result or effect) to value any such indebtedness in a reduced or bifurcated manner as described therein, and such 

5

indebtedness shall at all times be valued at the full stated principal amount thereof and (b) the definitions set forth in this Agreement and any financial calculations required hereunder shall be computed to exclude any change to lease accounting rules from those in effect pursuant to Financial Accounting Standards Board Accounting Standards Codification 840 (Leases) and other related lease accounting guidance as in effect on the date hereof, and provided further that, if any change to GAAP after the date hereof shall materially affect computations determining compliance with the financial ratios and covenants set forth herein or otherwise in the Agreement, if either Bank or Retailer shall so request, the Bank and Retailer shall negotiate in good faith to amend such ratios or covenants to preserve the original intent thereof in light of such change in GAAP; and until so amended, (a) such ratio or restriction shall continue to be computed in accordance with GAAP prior to such change therein (subject to the foregoing first proviso) and (b) Retailer shall provide to the Bank financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratios or restrictions made before and after giving effect to such change. 

"Interest Coverage Ratio" shall (a) have the same meaning as is ascribed to the term “Interest Coverage Ratio” in the Credit Agreement and (b) be determined in the same way as the Interest Coverage Ratio is determined under the Credit Agreement.   If the definition of Interest Coverage Ratio, or any underlying defined terms that make up the definition, are changed in the Credit Agreement, Retailer will inform Bank of any proposed changes and If Bank agrees to the proposed changes in writing, the definition of Interest Coverage Ratio for purposes of this Agreement will change also.  Bank will not unreasonably withhold its consent to any proposed changes in the definition of Interest Coverage Ratio.  

6

  SCHEDULE 6(a)
to
Retailer Program Agreement
(Sleep Number)
  
Initial Approved Credit-Based Promotions
  
A.    Non-Promotional Credit Offer: Retailer Fee Percentage: XXXX
  
[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]
  
B.    Credit-Based Promotions:
  
Standard Retailer Fee Percentages at XXXX
	
			
	Promotion
	Retailer Fee Percentage

	 
	Retail
	Telephone/Internet

	6 Month WPDI
	XXXX
	XXXX

	12 Month WPDI
	XXXX
	XXXX

	13 Month WPDI
	XXXX
	XXXX

	14 Month WPDI
	XXXX
	XXXX

	15 Month WPDI
	XXXX
	XXXX

	16 Month WPDI
	XXXX
	XXXX

	17 Month WPDI
	XXXX
	XXXX

	18 Month WPDI
	XXXX
	XXXX

	19 Month WPDI
	XXXX
	XXXX

	20 Month WPDI
	XXXX
	XXXX

	21 Month WPDI
	XXXX
	XXXX

	22 Month WPDI
	XXXX
	XXXX

	23 Month WPDI
	XXXX
	XXXX

	24 Month WPDI
	XXXX
	XXXX

	 
	 
	 

	18 Month EPNI
	XXXX
	XXXX

	24 Month EPNI
	XXXX
	XXXX

	25 Month EPNI
	XXXX
	XXXX

	26 Month EPNI
	XXXX
	XXXX

	27 Month EPNI
	XXXX
	XXXX

	28 Month EPNI
	XXXX
	XXXX

	29 Month EPNI
	XXXX
	XXXX

	30 Month EPNI
	XXXX
	XXXX

	31 Month EPNI
	XXXX
	XXXX

	32 Month EPNI
	XXXX
	XXXX

	33 Month EPNI
	XXXX
	XXXX

	34 Month EPNI
	XXXX
	XXXX

	35 Month EPNI
	XXXX
	XXXX

	36 Month EPNI
	XXXX
	XXXX

	48 Month EPNI
	XXXX
	XXXX

	60 Month EPNI
	XXXX
	XXXX

	 
	 
	 

	60 Month Fixed Pay @ 5.99%
	XXXX
	XXXX

	72 Month Fixed Pay @ 5.99%
	XXXX
	XXXX

7

The Retailer Fee Percentages set forth above are subject to revision as set forth in Sections 6(c) and 6(e).

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

8

SCHEDULE 6(h)
to
Retailer Program Agreement
(Sleep Number)

XXXX

[Portions of this Section have been omitted pursuant to a request for confidentiality under Rule 24b-2 of the Securities Exchange Act of 1934, as amended. The confidential portions of this Section that have been omitted are marked with “XXXX”.  A copy of this Exhibit with all sections intact has been filed separately with the Securities and Exchange Commission.]

9

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