Document:

Exhibit 10.22

 

 

   

STANDARD LEASE AGREEMENT

 

11193 WEST EMERALD DRIVE, BOISE

 

between

 

EMERALD TOWN, LLC

“Landlord”

 

and

 

KYLE’S CUSTOM WOODSHOP, INC.

“Tenant”

 

Dated: June 9, 2021

 

 

 

     

     

    

 

STANDARD LEASE AGREEMENT

 

THIS STANDARD LEASE
AGREEMENT (“Lease”) is entered into effective June 9, 2021,
by and between Emerald Town, LLC, an Idaho limited liability company, as Landlord (“Landlord”), and Kyle’s Custom
Wood Shop, Inc., an Idaho corporation, as Tenant (“Tenant”).

 

1.
Lease of Premises.

 

1.1
Leased Premises. Subject to the terms and conditions of this Lease, Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord for the Term {defined below) that certain warehouse space located at 11193 W Emerald, Boise, Idaho 83713 and
consisting of approximately 9,530 square feet (“Leased
Premises”). The Leased Premises are situated within the 11193 W Emerald Building (“Building”) and located
on that certain real property (“Landlord Parcel”), as shown on the Exhibit “A”; the Site and Floor Plan
as shown on Exhibit “B”, attached hereto and incorporated herein by this reference. Landlord Parcel is more particularly
described in Schedule I attached hereto and incorporated herein by this reference and located in the City of Boise, County of Ada,
State of Idaho, together with any existing, parking areas, sidewalks, service areas and other improvements now existing or hereafter
constructed thereon.

 

1.2 Floor
Area. In determining the floor area of the Leased Premises, distances shall be measured from the exterior face of all exterior walls
and the center of all-party walls which separate the Leased Premises from other leasable space in the Building and a percentage of the
riser room.

 

1.3 Common
Areas. Subject to the terms and conditions of this Lease, Tenant shall have the non-exclusive right to use all common areas located
within the Building and located on Landlord Parcel, other areas intended to be used in common by all of the tenants of the Building and
on Landlord Parcel and their invitees, including, but not limited to the parking lot identified in Exhibit “A” and Schedule
I, parking lots, sidewalks, dumpster and all other areas intended to be used in common by all of the tenants of the Building and on Landlord
Parcel and their invitees (collectively, “Common Areas”).

 

1.4 Improvements.
The obligations of Landlord and Tenant to perform work and supply materials and labor to prepare the Leased Premises for occupancy
are set forth in detail on Exhibit “B,” attached hereto and incorporated herein by this reference (‘Tenant Improvements”).
Landlord and Tenant shall expend all funds, and do all acts required of them in Exhibit “B,” and shall have the work performed
promptly and diligently in a first-class workmanlike manner.

 

1.5 Site
Plan; Other Tenancies. Tenant acknowledges and agrees that the Site Plan attached hereto as Exhibit “A” is subject to change,
and that Landlord, or others, may, from time to time, change the configuration, shape, size, location, number and extent of the improvements
shown thereon, and eliminate or add improvements to the Building. Tenant does not rely on the fact nor does Landlord represent that any
specific tenant or number of tenants shall during the Term occupy or operate within any space in the Building.

 

2.
Term.

 

2.1 Primary
Term. The primary term (“Primary Term”) shall be for sixty-two (62) consecutive months, commencing on Landlord’s
delivery of the Leased Premises to Tenant by Landlord with all Tenant Improvements complete and a Certificate of Completion issued by
the City of Boise whichever first occurs (“Commencement Date”), and terminating on the fifth (5th) anniversary
and two months of the Primary Term, unless earlier terminated as provided in this Lease.

 

2.2 Extension
Term(s). Tenant shall have one option to renew the Lease for a period of five (5) years at the then Fair Market Rent as determined
in Section 27.15 hereof but in no event will the rent be less than the
prior year increased by 3% annually.

 

2.3 Definition
of Term and Lease Year. The Primary Term and all Extension Term(s) are collectively the “Term.” Each one (1) year
period of the Primary Term and of any Extension Term(s) is a “Lease Year,” with Lease Year 1
commencing on the Commencement Date.

 

2.4 Delay
in Commencement. Tenant agrees that in the event of the inability of Landlord for any reason to deliver possession of the Leased Premises
to Tenant, Landlord and Tenant shall not be liable for any damage thereby nor shall such inability affect the validity of this Lease or
the obligations of Tenant hereunder; provided, however, that if Landlord has diligently pursued completion of the Tenant Improvements
and shall not have delivered possession of the Leased Premises in the condition specified in Section 2.1
above to Tenant by October 15, 2021, for reasons outside of Landlord’s
control, Landlord or Tenant may, by notice In writing to the other, within ten (10)
days after such date and the continued non-delivery of possession, cancel this Lease. If Tenant cancels this Lease, Landlord shall
return (i) any rent prepaid under Section 3.4, and (ii) any Security Deposit deposited under Section 11, and thereafter the parties shall
be discharged from all obligations hereunder. Landlord shall not be obligated to pay interest on any such amounts returned.

 

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2.5 Early
Possession. In the event that Landlord shall permit Tenant to occupy the Leased Premises at any time prior to the Commencement Date,
such occupancy shall be subject to all of the provisions of this Lease and the Commencement Date shall be adjusted. Notwithstanding the
above, Landlord agrees that upon substantial completion of the warehouse space of the Leased Premises, Tenant may deliver equipment to
the warehouse space prior to, and without adjustment to, the Commencement Date. Tenant will be responsible for casualty insurance for
all of its equipment located in the Leased Premises at Tenant’s cost and in such amounts deemed desirable by Tenant.

 

2.6 Acknowledgment
of Commencement Date. Tenant shall, upon the request of Landlord, execute a written acknowledgment of the Commencement Date.

 

2.7 Effectiveness.
Notwithstanding that Tenant’s possession of the Leased Premises may occur at a date subsequent to the date of execution of this Lease
by Landlord and Tenant, this Lease shall be effective and shall be a binding and enforceable agreement upon the date of its execution.

 

3.
Rent.

 

3.1 Monthly
Rent. During the Primary Term, Tenant shall pay to Landlord a monthly rent (“Monthly Rent”) as follows:

 

	Year	 	Monthly Rent	 	 	Operating Expenses
	Months 1 - 2	 	$	0.00	 	 	NNN/Utilities to be paid by Tenant
	Months 3 - 4	 	$	3,335.50	 	 	NNN/Utilities to be paid by Tenant
	Months 5 - 12	 	$	6,671.00	 	 	NNN/Utilities to be paid by Tenant
	Year 2	 	$	6,871.13	 	 	NNN/Utilities to be paid by Tenant
	Year 3	 	$	7,077.26	 	 	NNN/Utilities to be paid by Tenant
	Year 4	 	$	7,289.58	 	 	NNN/Utilities to be paid by Tenant
	Year 5 + 2 Months	 	$	7,508.27	 	 	NNN/Utilities to be paid by Tenant

 

Monthly Rent shall
be payable in equal monthly installments in advance on the first day of each calendar month during a Lease Year, and shall be prorated
for any fractional month. If the Primary Term Date is on a date other than the first day of a calendar month, the first installment shall
be payable on the Primary Term Date and shall include prorated rent for the initial fractional month, together with rent for the next
succeeding full calendar month.

 

Monthly Rent for any Extension Term
shall be the “Market Rental Value” as defined in Section 27.15 and thereafter set forth on a schedule and attached to this Lease
as an exhibit.

 

3.2 Definition
of Rent; Place of Payment. For purposes of this Lease, “Rent” shall include Monthly Rent, Tenant’s pro rata share
of all Operating Expenses (defined below), and all other amounts payable by Tenant to Landlord under this Lease. Tenant shall pay Rent
to Landlord, without notice or demand, at the address set forth for Landlord in Section 24 (Notices), or at such other place as Landlord
may from time to time designate in writing. Rent is deemed paid upon receipt by Landlord at the place of payment.

 

3.3 Late
Payments. In the event Tenant fails to pay any amount of Rent or any other sum due from Tenant within five (5) business days after
the same is due, Tenant shall pay to Landlord a late payment charges equal to five percent (5%) of the amount unpaid. In the event any
check of Tenant is returned unpaid, Tenant shall pay to Landlord upon demand a dishonored check fee of One Hundred Dollars ($100.00) and
Landlord may require that Tenant pay the amounts due in the form of a cashier’s check or money order. Tenant further agrees to pay to
Landlord upon demand any other costs reasonably incurred by Landlord in efforts to collect any past due amounts (including, but not limited
to, attorneys’ fees [whether or not legal proceedings are initiated) and collection agency fees). Any past due amounts under this Lease,
including late payment charges, shall bear interest at a rate of one and one-half percent (1-1/2%) per month. All amounts payable under
this Section shall be within the definition of Rent and shall be due when payable. Landlord’s right to recover late• payment charges
or other amounts pursuant to this Section is in addition to any other rights or remedies Landlord may have. Acceptance of any partial
payment, or any late payment charge or other amounts pursuant to this Section, shall not be deemed a waiver of any other rights or remedies
Landlord may have, nor shall it reinstate this Lease or cure a default of Tenant without payment in full of all amounts due. No endorsement
or statement on any check or any letter accompanying any check or payment as rent shall be deemed an accord and satisfaction.

 

3.4 Prepaid
Rent. Concurrently with Tenant’s execution of this Lease, Tenant shall pay to Landlord a Rent Deposit of $6,671.00 which shall be
credited toward Tenant’s Rent and Operating Expenses, and Tenant’s portion of utilities if the Leased Premises is not separately metered,
until used in full.

 

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3.5
Triple Net Lease (NNN).  In addition to the rents due under this Lease, Tenant shall be responsible for payment of Operating
Expenses as set forth in Section 10; provided, however, that Landlord shall be responsible for those items as specifically set forth
as Landlord’s Obligations in Section 7.2, below. Except as specifically set forth in Section 7.2, Landlord shall not be responsible
for any costs or expenses incurred in connection with the Leased Premises, the Building and Landlord Parcel during the Term and
shall be entitled to a net return of the rental herein specified undiminished by the cost of insurance, taxes and assessments, or
water, electrical, cable, gas, sewer or other utility charges, or levies of any kind or nature whatsoever, or cost of operation,
repair, upkeep, renewal, improvement, alteration, restoration, replacement, or reconstruction of the land, buildings and
improvements within the building and Landlord Parcel. Landlord agrees that Operating Expenses, excluding taxes, snow removal and
insurance, shall not increase by more than three (3) percent(%) per year. Without limitation upon the foregoing, the provisions of
Section 10 set forth a further definition of and the manner of payment of Tenant’s pro rata shares of such costs and expenses.

 

4.
Lease Subject to Restrictions, Easements and Agreements.

 

Notwithstanding
anything in this Lease to the contrary, this Lease is subject and subordinate to all covenants, conditions, restrictions, and easements
affecting the Leased Premises and a copy of which has been provided to Tenant prior to signing this Lease. Landlord represents and warrants
to Tenant that Tenant’s use under this Lease and the Tenant Improvements do not violate any covenants, conditions, restrictions, and easements
affecting the Leased Premises. Tenant shall not do or omit to do any act, nor shall Landlord be required to do any act, which constitutes,
or which may constitute, a default under or a violation of such covenants, conditions, restrictions and easements. Notwithstanding anything
in this Lease to the contrary, Landlord shall not be deemed in breach of or in default under any term, covenant, condition or agreement
in this Lease (including, without limitation, those relating to maintenance and insurance of the Common Areas) if another party bound
by such covenants, conditions, restrictions and easements is obligated to perform such term, covenant, condition, or agreement and Landlord
is proceeding diligently to require such party to perform the same.

 

 5. Use of Leased Premises.

 

5.1 Permitted
Business Use. The Leased Premises shall be used for the operation of a general warehouse for cabinet production, general office operations,
and incident related uses and for no other purpose. Tenant shall comply with all laws, rules, regulations, ordinances and requirements
applicable to Tenant or Tenant’s use or occupancy of the Leased Premises or Common Areas. Tenant shall neither commit nor permit any waste
upon the Leased Premises, nor any use of the Leased Premises or Common Areas which is prohibited by the restrictions and easements provided
to Tenant prior to signing the Lease, which is a nuisance or disturbs the quiet enjoyment of any other tenant in the Building or Landlord
Parcel, which is dangerous to life, limb, or property, or which increases the premium cost of or invalidates any policy of insurance carried
by Landlord on or for the Leased Premises or any part of the Building or Leased Premises, or which use violates any governmental restriction,
limitation or prohibition on such use. In case of any increase in premium cost resulting from Tenant’s permitting any such use, Tenant
shall pay to Landlord the amount of such increase without prejudice to any other right or remedy Landlord may have on account of that
or any other breach or default of Tenant. Tenant agrees to immediately conform use of the Leased Premises to comply with the provisions
of this Section. Notwithstanding its agreement to immediately modify its use to conform with this provision, Tenant retains the right
to seek legal redress from the appropriate governmental entity through the exercise of all rights of petition or appeal to modify governmental
action. If Tenant successfully obtains legal redress, and the governmental entity reverses, revokes or amends the restriction, limitation
or prohibition, Tenant may reinitiate the use. Under no circumstances is Tenant released from the obligations imposed under this Lease
as a result of any governmental action regarding the restriction, limitation or prohibition on Tenant’s use of the Leased Premises. Tenant
shall at all times conduct its business on the Leased Premises in an orderly manner.

 

5.2 Deliveries
to Leased Premises. Tenant shall complete, or cause to be completed, all deliveries, loading, unloading and services to the Leased
Premises in a manner that will not materially interfere with Landlord or other tenants in the Building or Landlord Parcel. Landlord reserves
the right to prescribe and enforce reasonable and nondiscriminatory regulations in regard to deliveries and servicing to the Leased Premises.

 

5.3 Tenant’s
Disposal of Refuse. Tenant shall not dump, dispose, reduce, incinerate, or otherwise burn trash, refuse, or garbage of any kind in
or about the Leased Premises, Building, or Landlord Parcel except as permitted herein. Tenant shall store all trash and garbage within
the Leased Premises or at a location designated by Landlord in covered metal containers so located as not to be visible to customers or
business invitees in the Building or Landlord Parcel. Tenant shall arrange for and bear the expense of the prompt and regular removal
of such trash and garbage from the Leased Premises. Landlord shall provide central enclosed trash removal facilities for building Tenant(s)
and the building Tenant(s) shall pay the costs upon demand for such removal on a pro rata basis, as with other Operating Expenses.

 

5.4 Landlord’s
Rules and Regulations. Tenant shall faithfully observe and comply with such other rules and regulations as Landlord may from time
to lime reasonably promulgate regarding use of the Leased Premises and/or Common Areas. Landlord reserves the right from time to time
to make reasonable modifications to said rules and regulations. Such rules and regulations and any additions and modifications thereto
shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord will make commercially reasonable efforts to enforce
compliance of the rules and regulations with other tenants.

 

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 6. Use of Common Areas.

 

During the Term,
Tenant, its employees, agents, licensees and invitees, shall have nonexclusive use of the Common Areas. Landlord may from time to time
prescribe reasonable regulations in regard to use of the Common Areas, including, without limitation, the designation or re-designation
of specific areas where Tenant, its officers, employees, agents and licensees, may park. Upon Landlord’s request, Tenant shall furnish
to Landlord a complete list of vehicle license numbers of all its employees, agents and licensees who use the Common Areas for parking.
Tenant shall not use the Common Areas (including sidewalks) for any purpose other than ingress, egress and parking. Without limiting the
generality of the foregoing, Tenant shall not solicit business or display or sell merchandise within the Common Areas (including sidewalks),
without Landlord’s prior written permission, or take any action which would interfere with the rights of other persons authorized to use
such Common Areas. Landlord may temporarily close any part of such Common Areas for such reasonable periods of time as Landlord deems
desirable to make repairs or alterations or to prevent unauthorized persons from using such Common Areas. Landlord shall have the right
to enlarge or reduce the Common Areas, and to change the arrangement of Common Area improvements, provided access to the Leased Premises
and parking shall not be materially impaired.

 

 7. Maintenance of Leased Premises and Common Areas.

 

7.1 Tenant’s
Obligations. During the Term, Tenant shall keep and maintain the interior of the Leased Premises as well as all equipment or systems
operating for the exclusive benefit of the Leased Premises (including, without limitation, doors, windows, plumbing, HVAC, floors, floor
coverings, electrical and lighting facilities and equipment, ceilings, plate glass, and the nonstructural portions of the walls in good
repair, order and condition, reasonable wear and tear excepted, and shall keep windows, doors any signs of Tenant in a clean and sightly
condition. Tenant shall not go onto the roof or penetrate the roof membrane without the prior written consent of Landlord and shall take
no action which may invalidate any existing roof warranty. Tenant shall not overload floors with heavy machinery or equipment. Tenant
shall operate the HVAC system in accordance with Landlord’s instructions. Tenant shall not display or sell merchandise or allow other
objects to be stored or to remain in Common Areas, nor shall Tenant install or place any aerial, antenna, satellite dish, banner, or flags
on the roof or exterior walls of the Leased Premises, without first obtaining, in each instance, the prior written consent of Landlord.
Notwithstanding anything in this Lease to the contrary, Tenant shall pay for all maintenance, repairs and replacements performed or made
by either party when the need for such arises or results from the negligent or willful act or omission of Tenant, its officers, employees,
agents, invitees or licensees. Tenant may not offset or withhold any rent due under this Lease for any repairs it makes to the Leased
Premises.

 

7.2 Landlord’s
Obligations. During the Term, Landlord shall, except to the extent prevented by practical impossibility, and except as otherwise provided
herein, keep the exterior, foundation, roof and roof membrane, roof drainage systems, shared HVAC and other shared systems affecting the
Leased Premises, and structural elements of the Leased Premises in good repair, order and condition, reasonable wear and tear excepted.

 

7.3 Landlord’s
Common Area and Other Obligations. Landlord shall cause to be maintained the Common Areas and such equipment or systems that operate
for the collective good of the tenants and cannot be segregated as a Tenant responsibility. Tenant shall pay to Landlord Tenant’s pro
rata share of the costs and expenses paid or incurred by Landlord with respect to the foregoing as set forth in Section 10 (Operating
Expenses).

 

7.4 Notice
Required. Notwithstanding anything in this Lease to the contrary, Landlord shall not in any way be liable to Tenant for failure to
maintain or make repairs as required unless Tenant has previously given Landlord written notice of the need for such maintenance or repairs
and Landlord has failed to commence and complete the same within a reasonable time following receipt of Tenant’s written notice.

 

7.5 Inspection
by Landlord. Landlord may enter upon the Leased Premises during all reasonable hours for the purpose of inspecting the same, provided
Landlord gives Tenant 24-hour notice, except in a case of an emergency. In the event Tenant fails to maintain or make repairs to the Leased
Premises as required under this Lease, Landlord may, after giving Tenant reasonable written notice of its election to do so, perform such
maintenance or make such repairs on behalf of and at the expense of Tenant. Tenant shall pay to Landlord the costs of such work within
ten (10) days after receipt of an invoice therefor.

 

8.
Insurance and Indemnification.

 

8.1 Property
Insurance. During the Term, Landlord shall provide and maintain insurance on the Building and other improvements on the Landlord Parcel
in an amount not less than one hundred percent (100%) of the replacement cost thereof (exclusive of Tenant’s property and contents) insuring
against loss by fire, lightning and other risks from time to time included in “extended coverage” policies. Landlord may procure
a rent loss endorsement in favor of Landlord insuring against loss of rents for a period not more than twelve (12) months. Tenant shall
pay to Landlord Tenant’s pro rata share of the cost of such insurance as set forth in Section 10 (Operating Expenses).

 

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8.2 Insurance
on Tenant’s Property. During the Term, Tenant shall provide and maintain, at Tenant’s sole cost and expense, insurance on Tenant’s
property and contents insuring against loss by fire, lightning and other risks from time to lime included in “extended coverage”
policies. Tenant shall furnish to Landlord evidence of Tenant’s compliance with this Section.

 

8.3
Liability Insurance for Leased Premises. Tenant shall, at all times, commencing with the date upon which the Leased Premises are
made available to Tenant, provide and maintain, at Tenant’s sole cost and expense, commercial general liability insurance insuring
against claims for personal injury, bodily injury or death, and property damage or destruction, occurring in, on or about the Leased
Premises, naming Landlord, Landlord’s mortgagee or other specified lender, any other persons, firms or corporations designated by
Landlord from lime to lime as having an insurable interest, and Tenant as insureds. The limits of liability of all such insurance
shall be not less than $2,000,000 for personal injury or bodily injury or death of any one person, $2,000,000 for personal injury or
bodily injury or death of more than one person in one occurrence, and $2,000,000 with respect to damage to or destruction of
property; or, in lieu of such coverage, a combined single limit (covering personal injury, bodily injury or death and property
damage or destruction) with a limit of not less than $2,000,000 per occurrence. The deductibles under any insurance policies to be
carried by Tenant shall not exceed Five Thousand Dollars ($5,000), and each shall provide coverage on an occurrence basis (and not
on a “claims made” basis). Said insurance shall be with an insurance carrier or carriers satisfactory to Landlord,
authorized and licensed to do business in Idaho, that are rated “A-” or better in “Best’s Insurance Guide” or
accepted by the U.S. Department of Housing and Urban Development, and shall not be subject to cancellation except after at least
thirty (30) days’ prior written notice to Landlord. Tenant shall furnish to Landlord evidence of Tenant’s compliance with this
Section. If Tenant fails to provide or maintain said insurance, Landlord may, but shall not be obligated to, obtain such insurance
and keep the same in force and effect, and Tenant shall pay Landlord upon demand the premium cost thereof. However, nothing
contained in this Section shall be deemed to limit the liability of Tenant.

 

8.4
Liability Insurance for Common Areas. During the Term, Landlord shall provide and maintain commercial general liability
insurance insuring against claims for personal injury, bodily injury or death, and property damage or destruction, occurring in, on
or about the Common Areas, naming both Landlord and Tenant as insureds. The limits of liability of all such insurance shall be not
less than $2,000,000 for personal injury or bodily injury or death of any one person, $2,000,000 for personal injury or bodily
injury or death of more than one person in one occurrence, and $2,000,000 with respect to damage to or destruction of property; or,
in lieu of such coverage, a combined single limit (covering personal injury, bodily injury or death and property damage or
destruction) with a limit of not less than $2,000,000 per occurrence. Tenant shall pay to Landlord Tenant’s pro rata share of the
cost of such insurance as set forth in Section 10 (Operating Expenses).

 

8.5 Other
Insurance Coverage. Tenant shall be solely responsible for obtaining any workers’ compensation insurance, employers’ liability insurance,
business interruption insurance, and any other type of insurance for the benefit of Tenant.

 

8.6 Indemnification.
Tenant shall indemnify, defend, protect and hold Landlord harmless from and against any and all claims of liability for any injury
or damage to any person or property arising from Tenant’s use of the Leased Premises, or from the conduct of Tenant’s business, or from
any activity, work or thing done, permitted or suffered by Tenant in or about the Leased Premises, the Common Areas, or elsewhere, except
to the extent caused by Landlord. Tenant shall further indemnify, defend, protect and hold Landlord harmless from and against any and
all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under this Lease,
or arising from any negligent or intentional act or omission on the part of Tenant or Tenant’s agents, contractors or employees, and from
and against all costs, attorney’s fees, expenses and liabilities incurred in the defense of any such action or proceeding brought thereon.
In the event any action or proceeding is brought against Landlord by reason of any such claim, Tenant upon notice from Landlord shall
defend same at Tenant’s expense by counsel satisfactory to Landlord. Landlord shall indemnify, defend, protect and hold Tenant harmless
from and against any and all claims of liability for any injury or damage to any person or property arising from Landlord’s breach or
default in the performance of any obligation on Landlord’s part to be performed under this Lease, or arising from any negligent or intentional
act or omission on the part of Landlord or Landlord’s agents, contractors under Landlord’s control or employees, and from and against
all costs, attorney’s fees, expenses and liabilities incurred in the defense of any such action or proceeding brought thereon. In the
event any action or proceeding is brought against Tenant by reason of any such claim, Landlord upon notice from Tenant shall defend same
at Landlord’s expense by counsel satisfactory to Landlord.

 

8.7 Waiver
of Subrogation. Landlord and Tenant hereby release each other from any and all liability or responsibility to the other or to anyone
claiming by, through or under them by way of subrogation or otherwise, for any loss or damage to the real or personal property of the
other (even if caused by the negligence of the other, or anyone for whom such party may be responsible), to the extent such loss or damage
is actually covered by and paid under any policy of insurance carried by the other. Landlord and Tenant shall immediately give to each
insurance company which has issued policies of fire and extended coverage insurance, written notice of this Section, and shall have all
such insurance policies endorsed to prevent the invalidation of the insurance coverage because of the waivers contained in this Section.

 

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9.
Taxes.

 

9.1 Real
Estate Taxes. Landlord shall pay, before delinquency, all real estate taxes and assessments levied against the Landlord Parcel. Tenant
shall pay to Landlord Tenant’s pro rata share of such real estate taxes and assessments as set forth in Section 10 (Operating Expenses).

 

9.2 Personal
Property Taxes. During the Term, Tenant shall pay, before delinquency, all taxes levied against the leasehold interest of Tenant or
the personal property and trade fixtures owned or placed by Tenant in or about the Leased Premises.

 

9.3 Other
Taxes. Tenant shall pay to Landlord all excise, privilege, rental and other taxes, levied or assessed in connection with Tenant’s
use or occupancy of the Leased Premises (including, but not limited to, any tax measured by the rents payable under this Lease). Nothing
contained herein shall be construed to require Tenant to pay any estate, gift, inheritance or net income tax of Landlord.

 

10.
Operating Expenses.

 

10.1 Payment
of Tenant’s Pro Rata Share of Operating Expenses (NNN). Tenant shall pay to Landlord Tenant’s pro rata share of all Operating Expenses
in accordance with this Section. For purposes of this Lease, “Operating Expenses” is defined to include the following
items:

 

(a) All
taxes and assessments (including, without limitation, as specified in Section 9) levied against or allocated to the Landlord Parcel, and
any costs, including attorneys’ fees, which Landlord may reasonably incur in contesting said taxes and assessments;

 

(b) All
costs and expenses of every kind and nature paid or incurred by Landlord for maintenance and insurance of the Common Areas. It is understood
and agreed that the phrase “costs and expenses for maintenance and insurance of the Common Areas”, as used herein, shall be
construed to include, but not be limited to, all sums expended in connection with the Common Areas for all general maintenance and repairs,
resurfacing, or painting, re-stripping, cleaning, sweeping and janitorial services; maintenance and repair of sidewalks, curbs, sprinkler
systems, planting and landscaping; snow and ice removal; HVAC servicing and repair; lighting and other utilities, maintenance and repair
of any fire protection systems, lighting systems, storm drainage systems, trash service, and any other utility systems and if Landlord,
at its sole discretion, deems necessary, the cost of security guards.

 

(c) All
costs and expenses of every kind and nature paid or incurred by Landlord in the repair, upkeep, renewal, improvement, alteration, restoration,
replacement or reconstruction of any and all facilities, structures, and improvements located on or used in connection with the Leased
Premises, Building or Landlord Parcel; provided that Operating Expenses do not include replacement of structural components.

 

(d)
All premium costs for property insurance on all improvements on the Landlord Parcel permitted in this Lease.

 

(e) All
costs for utilities or other services supplied to the Landlord Parcel, which are not separately metered or charged to the Leased Premises
but are supplied for the benefit of the Leased Premises (including, without limitation, costs of heat, ventilating and air conditioning,
of furnishing gas, electricity, water, cable and sewer and waste disposal services); and

 

(f) All
reasonable costs for the management and operation of the Landlord Parcel (including, without limitation, an administrative fee of ten
(10%] of all Operating Expenses [excluding taxes set forth in Section 9 and insurance in Section 8] to cover Landlord’s administrative
and overhead costs), the costs of consulting, legal and accounting services, and the costs for any security services Landlord, at its
sole discretion, deems necessary; provided, however, that Landlord shall not be obligated in any manner to provide any such security services.

 

(g) Any
other commercially reasonable costs and expenses directly related to the maintenance of the Landlord Parcel and which are not Landlord
Obligations under this Lease in Section 7.2.

 

(h) Notwithstanding
the foregoing, only commercial reasonable capital expenditures and capital expenditures required by law will be charged to Tenant as part
of Operating Expenses, and only to the extent the cost is amortized according to GAAP (Generally Accepted Accounting Principles) over
the useful life of such capital improvement, and Tenant’s Operating Expense will only include such annual amortization amount.

 

10.2
Calculation of Tenant’s Pro Rata Share of Operating Expenses. Tenant’s pro rata share of Operating Expenses is 12.2% (calculated
as 9,530 square foot Premises in a 77,962 square foot Building). Tenant’s Operating Expenses shall be $0.14/psf foot of the Premises
per month. The parties agree that the Tenant’s pro rata share of Operating Expenses does not include the cost of electrical and gas
serving the Premises which are estimated to be at $0.05/sq. ft ($476.50 annually). Landlord will pay and bill Tenant monthly until
such time the utilities are separately metered.

 

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10.3 Estimated
Monthly Payments. Tenant shall pay to Landlord in advance on the first day of each calendar month during the Term (with ratable adjustment
for any fractional month), the amount of $1,334.20 estimated by Landlord to be Tenant’s monthly pro rata share of all Operating Expenses
for the first Lease Year. Landlord may periodically adjust the estimated monthly payment on the basis of Landlord’s experience, reasonably
anticipated costs, or imposition of any new tax or assessment pursuant to Section 9 above. At Landlord’s option, some or all Operating
Expenses may be paid by Tenant in arrears. Landlord shall not be required to pay to Tenant any interest or earnings on amounts paid to
Landlord pursuant to this Section.

 

10.4 Deficiencies.
If at any time during the Term, the estimated monthly payments made by Tenant pursuant to this Section are not sufficient to pay Operating
Expenses as the same will come due, Tenant shall immediately upon demand pay to Landlord Tenant’s pro rata share of such amounts as are
necessary to cure any such insufficiency.

 

10.5 Reconciliation.
Within ninety (90) days, after the end of each Calendar Year, and after any earlier termination of this Lease, Landlord shall provide
Tenant an accounting of the amounts paid to Landlord pursuant to this Section. If the total of such payments made by Tenant exceeds the
amount of payments actually made by Landlord for Operating Expenses, plus such amounts as have been reasonably accumulated toward Operating
Expenses to become due or costs to be incurred, such excess may, at Landlord’s election, be (i) applied against rents or other amounts
due or next thereafter to become due under the Lease or against loss or damage sustained by Landlord by reason of Tenant’s breach of or
default under the Lease, or (ii) refunded to Tenant. If the total of such payments made by Tenant is not sufficient to cover the amount
of payments actually made by Landlord for Operating Expenses, Tenant shall pay its pro rata share of such insufficiency within thirty
(30) days after receipt of a written statement. Tenant may inspect, and/or hire an auditor to review Landlord’s books and records regarding
such reconciliation and payments.

 

10.6 Emergency
or Extraordinary Expenditures. If at any time during the Term, Landlord deems it necessary to make any emergency or other extraordinary
expenditure which is an item of Operating Expenses, Tenant shall pay to Landlord Tenant’s pro rata share of such item within thirty (30)
days after receipt of a written statement therefor.

 

10.7 Separately-Metered
Utilities. Tenant shall be responsible for and shall pay, directly to the provider thereof, all charges for gas, cable, telephone,
electricity and other utility or similar services supplied and separately metered or charged to the Leased Premises.

 

10.8 Interruption.
Notwithstanding anything elsewhere to the contrary, Landlord shall not be liable in damages or otherwise for any failure or interruption
of any utility service furnished to the Leased Premises, and no such failure or interruption shall entitle Tenant to terminate this Lease.

 

11. Security Deposit. Tenant shall,
on the effective date of this Lease, deposit with Landlord the sum of $ 6,671.00. Said deposit may be commingled with Landlord’s
general funds and shall be held by Landlord, without liability for interest, as security for the faithful performance by Tenant of
all of the terms, conditions, and covenants of this Lease. If any amount of Rent payable by Tenant to Landlord shall be overdue and
unpaid or should Landlord make payments on behalf of Tenant, or Tenant shall fail to perform any of the terms of this Lease, then
Landlord may, at its option and without prejudice to any other right or remedy which Landlord may have on account thereof,
appropriate the entire amount of said deposit and apply said entire amount or so much thereof as may be necessary to compensate
Landlord toward the payment of Rent or loss or damage sustained by Landlord due to such breach or default on the part of Tenant.
After application of all or part of said deposit as above provided, Tenant shall forthwith upon demand restore said deposit to the
sum of $7,000.00. Should Tenant comply with all of the terms of this Lease and promptly pay all Rent as it comes due, said deposit
shall be returned to Tenant (or, at Landlord’s option, to the last assignee of Tenant’s interests under this Lease, to the extent
permitted by this Lease), at the end of the Term. In the event of bankruptcy or other debtor-creditor proceedings against Tenant,
such amounts from the deposit may be appropriated and shall be deemed to be applied first to the payment of all Rent due to Landlord
for all periods prior to filing of such bankruptcy or other debtor-creditor proceeding. Such appropriation or use of the Security
Deposit by Landlord shall not constitute an election of remedies or waiver of any remedy to which Landlord’s is legally
entitled.

 

12.
Signs.

 

12.1
Exterior Building Sign. Tenant shall have the right, at Tenant’s election, to place two (2) signs on the exterior of that
portion of the Building where Tenant’s business in conducted, one on the Building facing Emerald St and one on the Building facing
Meadowland Drive, unless otherwise approved by Landlord, and subject to City Codes. The location, size, design (including, without
limitation, lettering, logos, color, materials, and method and amount of illumination) and installation (including, without
limitation, location of any wall penetration and method of fastening) of the sign shall be subject to the prior written approval of
Landlord, which approval will not be unreasonably withheld or delayed. Tenant shall submit to Landlord, prior to fabrication or
installation of the sign, copies of detailed drawings and specifications for such. Tenant’s signage shall always conform to
governmental restrictions, limitations, or prohibitions. Tenant is solely responsible to ensure its signage is in compliance with
any restriction, limitation, or prohibition imposed by any governmental unit. Tenant shall modify its signage at its own expense
when required to conform to such regulation. Tenant acknowledges that approval by Landlord of Tenant’s signage does not constitute
any representation as to conformance with any existing or future governmental regulation. The sign shall be fabricated, installed,
maintained and illuminated at Tenant’s sole cost and expense, and the sign and installation thereof shall be in compliance with all
governmental requirements, including building and electrical codes. Tenant shall not place any other signs on the exterior of the
Building. Tenant shall not affix any sign to the roof of the Leased Premises. Tenant shall indemnify, defend, protect and hold
Landlord harmless from any acts or omission of Tenant’s sign contractors. Landlord reserves the right to place signs on the exterior
of the Building provided such signs do not interfere with Tenant’s sign. If the Building has sign criteria which has been provided
to Tenant prior to signing this Lease, Tenant shall cause any Tenant sign to be in compliance therewith. If Landlord enacts sign
criteria after the Tenant has installed its signs, Tenant will comply so long as it is no expense to Tenant and permit’s Tenant’s
standard sign package, if any. Landlord shall provide a junction box above tenant’s front space and Tenant shall pay to hook-up the
sign.

 

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12.2 Window/Door
Signs. Tenant may place upon the entrance door or window of the Leased Premises identifying the business, business hours and similar
information. In the event Tenant has a noncustomer door for receiving merchandise, only Tenant’s name may be applied on said door. Tenant
shall not affix or maintain upon the glass panes and supports of the show windows, doors and the exterior walls of the Leased Premises,
any signs, advertising placards, names, insignia, trademarks, descriptive material or any other such like item or items, without the prior
written approval of Landlord. Anything to the contrary in this Lease notwithstanding, Tenant shall not affix any sign to the roof of the
Leased Premises. In addition, no advertising medium shall be utilized in the Leased Premises or Building by Tenant which can be heard
or experienced outside the Leased Premises, including without limiting the generality of the foregoing, flashing lights, searchlights,
loudspeakers, phonographs, radios or television. Nothing contained in this Section shall be construed as a representation by Landlord
that the standards set forth in this Section do in fact conform to the relevant regulations of any governmental unit.

 

13.
Subordination, Quiet Enjoyment, and Attornment.

 

13.1 Subordination.
This Lease, at Landlord’s option, shall be subject and subordinate to the lien of any mortgage or deed of trust now or hereafter placed
upon the Leased Premises or the underlying land; provided, however, that so long as Tenant complies with all Tenant’s obligations under
this Lease, neither Tenant nor its successors and permitted assigns shall be disturbed in its possession of the Leased Premises. Such
subordination shall be automatic without the necessity of the execution and delivery of any further instruments on the part of Tenant;
provided, however, Tenant shall execute such further instruments subordinating this Lease to the lien of any such deeds of trust or mortgages
as shall be requested by Landlord. If any mortgagee or beneficiary shall elect to have this Lease be prior to the lien of its mortgage
or deed of trust, and shall be given written notice thereof to Tenant, this Lease shall be deemed prior to such mortgage, deed of trust,
or ground lease regardless of the respective dates of execution or recording of such.

 

13.2 Quiet
Enjoyment. So long as Tenant is not in default under this Lease, any restrictions and easements, or common area maintenance agreement,
which has been provided to Tenant prior to signing this Lease, and subject to other provisions of this Lease, Tenant shall have quiet
and peaceful possession of the Leased Premises and enjoy all of the rights granted herein without interference from Landlord or anyone
acting by, through or under Landlord.

 

13.3 Attornment.
In the event any mortgagee, beneficiary or other purchaser at a foreclosure sale acquires title to the Leased Premises causes Landlord’s
interest in the Leased Premises to be terminated and succeeds to Landlord’s interest in the Leased Premises, Tenant shall attorn to such
mortgagee, beneficiary or purchaser and recognize such as Landlord under this Lease, provided such mortgagee, beneficiary or purchaser
agrees in writing to accept Tenant and to be bound by the terms of this Lease.

 

13.4 Remedies.
Failure of Tenant to execute any statements or instruments necessary or desirable to effectuate the foregoing provisions of this Section,
within ten (10) days after written request so to do by Landlord, shall constitute a default. In the event of such failure, Tenant hereby
irrevocably appoints Landlord as attorney-in-fact for Tenant with full power and authority to execute and deliver in the name of Tenant
any such statements or instruments, which appointment shall be in addition to any other rights or remedies available to Landlord.

 

14.
Tenant Modifications; Alterations; Installation of Fixtures.

 

14.1 Except
for the Tenant Improvements as provided in Exhibit “B”, all tenant modifications to the Leased Premises, including any alterations
or remodels, shall be subject to Landlord’s prior written approval of the plans and specifications for the same, shall be at Tenant’s
sole cost and expense, shall be performed in a good and workmanlike manner in compliance with all applicable laws, codes and regulations,
and shall be diligently prosecuted to completion so that the Leased Premises shall at all times be a complete unit except during the reasonable
period necessary for such work.

 

14.2 Tenant
shall not permit any lien to stand against the Leased Premises for work done or materials furnished by or on behalf of Tenant,
provided that Tenant may contest the validity of any such lien (provided Landlord may require Tenant to transfer said lien to bond
as provided under applicable law), but upon a final determination of the validity thereof, Tenant shall cause the lien to be
satisfied and released of record.

 

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14.3 Nothing
contained herein shall constitute the consent or request of Landlord, express or implied, to or for the performance of any labor or services,
or the furnishing of any materials to or for the construction or restoration, reconstruction, expansion, alteration, repair or remodeling
of any improvements located on the Leased Premises. Notice is hereby given that Landlord shall not be liable for any labor, services or
materials furnished to Tenant or anyone holding or claiming any interest in the Leased Premises by, through or under Tenant and that no
mechanic’s, materialman’s or other liens for any such labor, services or materials shall attach to or affect the interest of Landlord
in and to the Leased Premises. Tenant agrees to provide Landlord written notice of its intent to cause the performance of any labor or
services, or the furnishing of any materials to or for the benefit of the Leased Premises at least thirty (30) days prior to commencing
any such construction, restoration, reconstruction, expansion, repair or remodeling.

 

14.4 Tenant
shall indemnify, defend, protect and hold harmless Landlord from any and all liabilities, claims, demands, losses, damage, costs,
expenses (including reasonable attorneys’ fees and reasonable attorneys’ fees on any appeal), judgments, proceedings and causes of
action of any kind whatsoever arising out of or in any way connected with (i) hazardous materials (including, without limitation,
asbestos or asbestos containing material) placed in or added to the Leased Premises or the Building by Tenant in violation of
applicable law, and (ii) the abatement of hazardous materials (including, without limitation, asbestos or asbestos containing
material) required by any governmental authorities having jurisdiction over the Leased Premises due to hazardous materials due to
the above. Landlord shall indemnify, defend, protect and hold harmless Tenant from any and all liabilities, claims, demands, losses,
damage, costs, expenses (including reasonable attorneys’ fees and reasonable attorneys’ fees on any appeal), judgments, proceedings
and causes of action of any kind whatsoever arising out of or in any way connected with hazardous materials (including, without
limitation, asbestos or asbestos containing material) existing in the Leased Premises, Building or Landlord’s Parcel prior to
Tenant’s use occupancy or placed or added to the Leased Premises, Building or Landlord’s Parcel, by Landlord.

 

15. Condition
and Suitability Leased Premises. Tenant has examined the Leased Premises prior to taking possession of such. Tenant’s taking possession
shall be conclusive evidence as against Tenant that at the time of taking possession the Leased Premises were in good order and satisfactory
condition except for any concealed conditions. Landlord represents and warrants that the HVAC, electrical, plumbing, and sprinkler systems
are in good working order, and the HVAC system is sufficient to support Tenant’s intended use for the office and conference room area
(i.e. not the shop areas shown on Exhibit B). Except as provided herein, Landlord does not make and hereby disclaims any warranties,
express or implied, with respect to the Leased Premises, and Tenant takes the Leased Premises in their present “as is” condition,
with all faults including latent and patent defects. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any
representations or warranties, nor is Tenant relying on any representations or warranties made by Landlord or Landlord’s agent, with respect
to the Leased Premises or with respect to the suitability of the Leased Premises or Building for the conduct of Tenant’s business, nor
has Landlord agreed to undertake any modification, alteration, or improvement of the Leased Premises except as provided in this Lease.
Without limitation upon the foregoing, it is specifically set forth that neither Landlord nor Landlord’s representatives have made any
representations or warranties of any kind or nature, whether express or implied, with respect to the Leased Premises’ compliance with
any federal, state or local law, statute, rule or regulations now or hereafter in effect (including, without limitation, the American
with Disabilities Act of 1990, 42 U.S.C. § 12101, et seq., and any comparable state laws and related statutes and regulations), and
Landlord shall have no obligation to Tenant with respect to the performance of any work related to such compliance, except that Landlord
warrants and represents that the bathrooms included in the Tenant Improvements will be ADA compliant.

 

16.
Assignment and Subletting.

 

16.1 By
Tenant. Tenant shall not assign, mortgage or transfer this Lease or any interest herein, sublease all or any part of the Leased
Premises, or permit the use or occupancy of the Leased Premises or any part thereof by anyone other than Tenant, without Landlord’s consent,
which shall not be unreasonably withheld. Notwithstanding the foregoing, if Tenant is a corporation, Tenant may assign this Lease to any
corporation succeeding thereto by consolidation, merger or acquisition of its assets substantially as an entirety, and to any wholly-owned
subsidiary thereof, or an entity controlled by Tenant; provided that any such succeeding corporation or subsidiary shall be deemed to
assume all of the obligations of Tenant hereunder, and Tenant shall remain liable under this Lease.

 

16.2 By
Landlord. Landlord shall have the right to sell, assign, transfer, convey, or mortgage its interest in this Lease and in and
to the Leased Premises, Building or the Landlord Parcel. Any such sale, assignment, transfer, conveyance, or mortgage shall not result
in the disruption of Tenant’s quiet enjoyment of the Leased Premises and any such sale, assignment, transfer, conveyance, or mortgage
shall be subject to the terms of this Lease. Landlord may sell all or any portion of Landlord’s interest in and to the Leased Premises,
Landlord Parcel or Building, and may otherwise assign and transfer this Lease. Any assignee or successor-in-interest shall assume all
obligations of Landlord under this Lease, and thereupon Landlord shall be relieved of all liabilities and obligations hereunder.

 

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17. Surrender of Possession.  All of
Tenant’s installations or additions to the Leased Premises which cannot be removed without damage to the Leased Premises shall, at
the option of Landlord, be deemed Landlord’s property; provided, however, that Landlord may elect prior to the termination of this
Lease or within ten (10) days thereafter to require Tenant to remove any installation or addition and repair any damage to the
Leased Premises at Tenant’s expense. Tenant shall remove from the Leased Premises all of Tenant’s furniture, trade fixtures and
other personal property of every kind whatsoever not becoming Landlord’s property as hereinbefore specified, and in the event of
Tenant’s failure to remove such property, all such property, and every interest of Tenant in the same, shall, at the option of
Landlord, be conclusively presumed to have been conveyed by Tenant to Landlord under this Lease as a bill of sale without
compensation, allowance, or credit to Tenant. Tenant shall nonetheless be liable to Landlord for the cost of removal of all such
property. Tenant shall, upon such termination of the Term or of Tenant’s right to possession, return to Landlord the Leased Premises
and all equipment and fixtures comprising a part thereof in as good a condition as when Tenant took possession, excepting only
ordinary wear and tear and damage by fire or other casualty for which Tenant is not legally responsible.

 

18. Holding
Over. Any hold over and acceptance of rent by Landlord beyond the termination of this Lease shall be deemed to establish a month-to-month
tenancy on the same terms and conditions as this Lease, except as to duration, and except that the monthly rental shall be 150% of the
monthly installment of Annual Rent payable for the last calendar month, or fraction thereof, preceding termination of this Lease.

 

19. Reserved Rights of Landlord.
In addition to any other rights reserved by Landlord in this Lease, Landlord reserves the following rights: (a) to change the name
or address of the Building without notice or liability of Landlord to Tenant; (b) to enter the Leased Premises or any part thereof at
all reasonable hours to make inspections, repairs, alterations or additions in or to the Leased Premises or the Building; to exhibit
the Leased Premises to prospective tenants, purchasers or others provided Landlord gives Tenant a 2-hour notice on weekdays and 24-hour
notice on weekends, except in a case of an emergency; to display during the last ninety (90) days of the Term without hindrance or molestation
by Tenant “For Rent” and similar signs on windows or elsewhere in or on the Leased Premises; and to perform any acts related
to the safety, protection, preservation, re-letting, sale or improvements of the Leased Premises or the Building; and (c) during the
last ninety (90) days of the Term or any part thereof, if during or prior to that time Tenant vacates the Leased Premises, to enter and
decorate, remodel, repair, alter or otherwise prepare the Leased Premises for re-occupancy. The exercise of any of these reserved rights
by Landlord shall never be deemed an eviction or disturbance of Tenant’s use and possession of the Leased Premises and shall never render
Landlord liable in any manner to Tenant or to any other person.

 

20.
Damage by Casualty.

 

20.1 Damage.
Tenant shall give immediate written notice to Landlord of any damage caused to the Leased Premises by fire or other casualty. In the event
the Leased Premises are damaged or destroyed by fire or other casualty insurable under standard fire and extended coverage insurance and
Landlord does not elect to terminate this Lease as hereinafter provided, Landlord shall proceed with reasonable diligence and at its own
cost and expense to rebuild and repair the Leased Premises to the extent of available insurance proceeds. In the event: (a) the Building
in which the Leased Premises are located shall be destroyed or substantially damaged by a casualty not covered by Landlord’s insurance;
(b) the Building or the Leased Premises be destroyed or rendered untenantable to an extent in excess of fifty percent (50%) of the floor
area; or (c) the holder of a mortgage, deed of trust or other lien on the Leased Premises at the time of the casualty elects, pursuant
to such mortgage, deed of trust or other lien, to require the use of part of Landlord’s insurance proceeds to the satisfaction of all
or part of the indebtedness secured by the mortgage, deed of trust, or other lien, then Landlord may elect to terminate this Lease or
to proceed to rebuild or repair the Leased Premises. Landlord shall give written notice to Tenant of such an election within thirty (30)
days after the occurrence of such casualty, and if it elects to rebuild and repair shall proceed to do so with reasonable diligence and
at its sole cost and expense. Notwithstanding anything to the contrary in the foregoing, if the damage not covered by Landlord’s insurance
is caused by an act or omission of Tenant or Tenant’s agents, contractors or employees, Tenant shall repair such damage promptly at Tenant’s
sole cost and expense.

 

20.2 Obligation
to Rebuild and Repair. Landlord’s obligation to rebuild and repair under this Section shall in any event be limited to restoring the
Leased Premises to substantially the condition in which the same existed prior to such casualty, exclusive of any alterations, additions,
improvements, fixtures and equipment installed by Tenant. Tenant agrees that promptly after completion of such work by Landlord, Tenant
will proceed with reasonable diligence and at Tenant’s own cost and expense to restore, repair, and replace all alterations, additions,
improvements, fixtures, trade equipment signs and equipment necessary for Tenant’s business.

 

20.3 Business
Operation; Rent Abatement. During any period of reconstruction or repair of the Leased Premises, Tenant shall continue the operation
of its business in the Leased Premises to the extent reasonably practicable. Annual Rent shall be abated or reduced proportionately during
any period in which, by reason of such damage or destruction, there is a substantial interference with the operation of Tenant’s business;
provided, however, that in the event of damage not covered by Landlord’s insurance and caused by an act or omission of Tenant or Tenant’s
agents, contractors or employees, there shall be no abatement of Annual Rent during any such period.

 

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21.
Default and Remedies.

 

21.1 Time
of Essence. Time is of the essence of this Lease, except as to the conditions relating to the delivery or possession of the Leased
Premises to Tenant.

 

21.2
Tenant’s Default. Tenant shall be deemed to be in default upon the occurrence of any of the following:

 

(a) Tenant
fails to pay when due any amount of Rent and such failure is not cured within five (5) business days after written notice from Landlord;
or

 

(b) Tenant
fails to perform or observe any other term, covenant, condition, agreement or provision of this Lease (other than failure to pay Rent)
and such failure is not cured within thirty (30) days after written notice to Tenant with such notice providing the default and remedy
with specificity; provided, if such failure cannot reasonably be cured within such time period, then Tenant shall not be deemed to be
in default if Tenant commences to cure and cures such failure within a reasonable time;

 

(c) Tenant
files a petition seeking any relief under any present or future federal, state or other statute, law or regulation relating to bankruptcy,
insolvency or other relief for debtors, or admits the material allegations of any such petition by answer or otherwise, or is dissolved,
or seeks or consents to or acquiesces in the appointment of any trustee, receiver or liquidator of Tenant, or makes any assignment for
the benefit of creditors, or admits in writing Tenant’s inability to pay debts as they become due; or

 

(d) Tenant
is in material default more than two (2) times in any Lease Year and thereafter, upon a third default, Landlord shall have the right
in its unrestricted discretion to cancel this Lease.

 

21.3 Landlord’s
Remedies. Upon Tenant’s default, after the applicable cure period, Landlord shall have the following remedies:

 

(a) Landlord shall have the right to
terminate this Lease by giving to Tenant written notice of such termination.

 

(b) If
Landlord elects to terminate this Lease as provided in subparagraph (a) hereof, Landlord may then or at any time thereafter, reenter the
Leased Premises, or any part thereof, and expel or remove therefrom Tenant and any other persons occupying the same, using such force
as may be necessary so to do, and again possess and enjoy the Leased Premises, without prejudice to any other remedies that Landlord may
have by reason of Tenant’s default or of such termination.

 

(c) If
Landlord elects to terminate this Lease, as provided in subparagraph (a) hereof, Landlord shall have all of the rights and remedies of
a landlord provided by law and by this Lease. The amount of damages which Landlord may recover in the event of such termination shall
include: (i) the worth at the time of award (computed by allowing interest at the rate of the lesser of one and one-half percent (1-1/2%)
per month or the maximum rate permitted by law) of the unpaid rent and charges equivalent to rent earned as of the date of termination
hereof; (ii) the worth at the time of the award (computed by allowing interest at the rate of the lesser of one and one-half percent (1-1/2%)
per month or the maximum rate allowable by law) of the amount by which the unpaid rent and charges equivalent to rent which would have
been earned after the date of termination hereof until the time of award exceeds the amount of such rental loss that Tenant proves could
have been reasonably avoided; (iii) the worth at the time of award (computed by discounting such amount at the discount rate of the Federal
Reserve Bank of San Francisco at the time of the award plus one percent (1%)) of the amount by which the unpaid rent and charges equivalent
to rent for the balance of the Term hereof after the time of award exceeds the amount of such rental loss that Tenant proves could be
reasonably avoided; (iv) any other amount necessary to compensate Landlord for the detriment proximately caused by Tenant’s failure to
perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom; and (v) any other
amount which Landlord may by law hereafter be permitted to recover from Tenant to compensate Landlord for the detriment caused by Tenant’s
default. Landlord agrees to take all reasonable measures to mitigate its damages caused by termination.

 

(d) After
terminating this Lease pursuant to subparagraph (a) hereof, Landlord may, without any further demand or notice, remove any and all personal
property located on the Leased Premises and place such property in a public or private warehouse or elsewhere at the risk and sole cost
and expense of Tenant. In the event that Tenant shall not immediately pay the cost of storage of such property after the same has been
stored for a period of thirty (30) days or more, Landlord may sell any or all thereof at a public or private sale in such a manner and
at such times and places as Landlord acting reasonably may deem proper, without notice to or demand upon Tenant.

 

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(e) Landlord
shall have the right to cause a receiver to be appointed in any action against Tenant to take possession of the Leased Premises
and/or to collect the rents or profits derived therefrom. Said receiver may, if it is necessary or convenient in order to collect
such rents or profits, conduct the business and may use the same in conducting such business on the Leased Premises. Neither the
application for the appointment of such receiver nor the appointment of such receiver shall constitute an election on the part of
the Landlord to terminate this Lease unless a written notice of such intention is given to Tenant.

 

(f) Landlord
may at Landlord’s election reenter the Leased Premises, and without terminating this Lease, at any time and from time to time relet the
Leased Premises or any part or parts of them for the account and in the name of Tenant or otherwise. Any reletting may be for the remainder
of the Term or for a longer or shorter period. Landlord may execute any leases made under this provision either in Landlord’s name or
in Tenant’s name and shall be entitled to all rents from the use, operation, or occupancy of the Leased Premises. Tenant shall nevertheless
pay to Landlord on the due dates specified in this Lease the equivalent of all sums required of Tenant under this Lease, plus Landlord’s
expenses, less the avails of any reletting or attachment. No act by or on behalf of Landlord under this provision shall constitute a termination
of this Lease unless Landlord gives Tenant notice of termination.

 

(g) If
Landlord elects to reenter the Leased Premises without termination, as provided in subparagraph (f)
hereof, Landlord may at Landlord’s election use Tenant’s personal property and trade fixtures or any of such property and fixtures
without liability for use or damage, or store them for the account and at the cost of Tenant. The election of one remedy for any one item
shall not foreclose an election of any other remedy for another item or for the same item at a later time.

 

(h) In
addition to the remedies for breach of this Lease described herein, Tenant agrees that Landlord shall be entitled to receive from Tenant
any and all costs in connection with Tenant’s default hereunder, including without limitation, administrative costs of Landlord associated
with Tenant’s default, costs of repairing and/or remodeling the Leased Premises for new tenants and leasing commissions for any leasing
agent engaged to relet the Leased Premises.

 

(I)
Notwithstanding anything to the contrary set forth herein, Landlord’s reentry to perform acts of maintenance of preservation of or
in connection with efforts to relet the Leased Premises or any portion thereof, or the appointment of a receiver upon Landlord’s initiative
to protect Tenant’s interest under this Lease shall not terminate Tenant’s right to possession of the Leased Premises or any portion
thereof, and until Landlord does elect to terminate this Lease by written notice to Tenant, this Lease shall continue in full force and
effect. Landlord may enforce all of Landlord’s rights and remedies hereunder including, without limitation, the right to recover from
Tenant as ii becomes due hereunder all rent, additional rent and other charges required to be paid by Tenant under the terms hereof.
Any reletting by Landlord of the Leased Premises, or any part or parts of them, shall be for the account and in the name of Tenant or
otherwise. Any reletting may be for the remainder of the Term or for a longer or shorter period. Landlord may execute any lease made
under this provision either in Landlord’s name or in Tenant’s name and shall be entitled to all rents from the use, operation or occupancy
of the Leased Premises to be applied toward any amounts due to Landlord from Tenant hereunder.

 

(j) Nothing
in this Section shall be deemed to affect Landlord’s right to defense and indemnification for liability or liabilities arising prior to
the termination of this Lease for personal injuries or property damage under the indemnification clause or clauses contained in this Lease.

 

(k) In
addition to the other remedies provided in this Lease, Landlord shall be entitled to injunctive relief in case of the violation, or attempted
or threatened violation, of any covenant, agreement, condition or provision of this Lease and to a decree compelling performance of any
covenant, agreement, condition or provision of this Lease and to any other remedy allowed to Landlord at law or in equity.

 

21.4 Default
by Landlord. Landlord shall not be in default unless Landlord fails
to perform obligations required of Landlord with a reasonable time, but in no event later than thirty (30) days after written notice by
Tenant to Landlord and to the holder of any mortgage or deed of trust covering the Leased Premises furnished to Tenant in writing, specifying
wherein Landlord has failed to perform such obligations; provided, however, that if the nature of Landlord’s obligation is such that more
than thirty (30) days are required for performance, then Landlord shall not be in default if Landlord commences performance within such
thirty (30) day period and thereafter diligently prosecutes the same to completion.

 

21.5 No
Election; No Waiver. The failure of Landlord to terminate this Lease at any time during Tenant’s default shall be deemed only an indulgence
by Landlord for that particular default and shall not be construed to be a waiver of the rights of Landlord as to any further or subsequent
default. No reentry or reletting of the Leased Premises shall be construed as an election by Landlord to terminate Tenant’s right to possession
and this Lease unless a written notice of such intention is given by Landlord to Tenant; and notwithstanding any such reletting without
such termination, Landlord may at any time thereafter elect to terminate Tenant’s right to possession and this Lease in the event that
at such time Tenant remains in default hereunder. The failure of Landlord to insist upon a strict performance of any of the terms, conditions
and covenants herein shall not be deemed a waiver of any rights or remedies that Landlord may have and shall not be deemed a waiver of
any subsequent breach or default in the terms, conditions and covenants herein contained.

 

    Page 13

     

    

 

21.6 Attorneys’ Fees. If at any
time, including after expiration of the Term, either party is required to to enforce any of the provisions herein, the
non-prevailing party in any allegation, suit or action, agrees, to pay all costs of the prevailing party in such action or actions,
together with reasonable attorneys’ fees, including reasonable attorneys’ fees on any appeal. Notices shall be given to the
addresses set forth in Section 24 (Notices) of this Lease. Anything herein to the contrary notwithstanding, this Section shall
survive any termination of the Lease.

 

21.7 Redemption.
Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of Landlord
obtaining possession of the Leased Premises by reason of the violation by Tenant of any of the covenants or conditions of this Lease,
or otherwise.

 

21.8 Remedies
Cumulative. Either party may pursue any other remedy now or hereafter available to ii under the laws or judicial decisions of Idaho.
Except as otherwise provided in this Lease, all rights and remedies shall be cumulative and none shall exclude any other right or remedy
allowed by law or equity. Likewise, the exercise of any remedy provided for herein or allowed by law or equity shall not be to the exclusion
of any other remedy.

 

21.9 Waiver
of Counterclaims and Trial by Jury. Landlord and Tenant waive their right to trial by jury in any action, proceeding or counterclaim
brought by either of the parties hereto against the other (except for personal injury or property damage) on any matters whatsoever arising
out of or in any way connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use of or occupancy of said Leased Premises,
and any emergency statutory or any other statutory remedy. Tenant shall not raise or make any counterclaim or counterclaims or claims
for set-off, recoupment or deduction of rent in a summary proceeding for nonpayment of rent or other action or summary proceeding based
on termination, holdover or other default in which Landlord seeks repossession of the Leased Premises from Tenant.

 

22.
Bankruptcy.

 

22.1 Chapter
7. In the event Tenant becomes a debtor in a case filed under Chapter 7 of the Bankruptcy Code and Tenant or Tenant’s trustee elects
to assume this Lease for the purpose of assigning the same or otherwise, such election and assignment may be made only if the provisions
of Sections 22.2, 22.3 and 22.5 are satisfied. If Tenant or Tenant’s trustee shall fail to elect to assume this Lease within sixty (60)
days after the filing of such petition or such additional time as provided by the court within such sixty (60) day period, this Lease
shall be deemed to have been rejected. Immediately thereupon Landlord shall be entitled to possession of the Leased Premises without further
obligation to Tenant or Tenant’s trustee, and this Lease, upon the election of Landlord, shall terminate, but Landlord’s right to be compensated
for damages in any such proceeding shall survive whether or not this Lease is terminated.

 

22.2 Chapter
11. In the event Tenant becomes a debtor in a case filed under Chapter 11 of the Bankruptcy Code, or in a case filed under Chapter
7 of the Bankruptcy Code which is converted to Chapter 11, Tenant’s trustee or Tenant, as debtor-in-possession, must elect to assume this
Lease within one hundred and twenty (120) days from the date of the filing of the petition under Chapter 11 or transfer thereto, or Tenant’s
trustee or the debtor-in-possession, shall be deemed to have rejected this Lease. In the event that Tenant, Tenant’s trustee or the debtor-in-possession
has failed to perform all of Tenant’s obligations under this Lease within the time periods (excluding grace periods) required for such
performance, no election by Tenant’s trustee or the debtor-in-possession to assume this Lease, whether under Chapter 7 or Chapter 11,
shall be permitted or effective unless each of the following conditions has been satisfied:

 

(a) Tenant’s
trustee or the debtor-in-possession has cured all defaults under the Lease or has provided Landlord with Assurance (as defined below)
that it will cure all defaults susceptible of being cured by the payment of money within ten (10) days from the date of such assumption
and that it will cure all other defaults under this Lease which are susceptible of being cured by the performance of any act promptly
after the date of such assumption.

 

(b) Tenant’s
trustee or the debtor-in-possession has compensated or has provided Landlord with Assurance that within ten (10) days from the date of
such assumption it will compensate Landlord for any actual pecuniary loss incurred by Landlord arising from the default of Tenant, Tenant’s
trustee, or the debtor-in-possession indicated in any statement of actual pecuniary loss sent by Landlord to Tenant’s trustee or the debtor-in-possession.

 

(c) Tenant’s
trustee or the debtor-in-possession has provided Landlord with Assurance of the future performance of each of the obligations under this
Lease of Tenant, Tenant’s trustee or the debtor-in-possession, and if Tenant’s trustee or the debtor-in-possession has provided such Assurance,
Tenant’s trustee or the debtor-in-possession shall also deposit with Landlord, as security for the timely payment of rent hereunder, an
amount equal to six (6) monthly installment payments of the Annual Rent, which shall be applied to the last installments of Annual Rent
that shall become due under this Lease, provided all the terms and provisions of this Lease shall have been complied with. The obligations
imposed upon Tenant’s trustee or the debtor-in-possession by this paragraph shall continue with respect to Tenant or any assignee of this
Lease after the completion of bankruptcy proceedings.

 

    Page 14

     

    

 

(d) Such
assumption will not breach or cause a default under any provision of any other lease, mortgage, financing agreement or other
agreement by which Landlord is bound relating to the Leased Premises. For purposes of this Section 23, Landlord and Tenant
acknowledge that “Assurance” shall mean no less than: Tenant’s trustee or the debtor-in-possession has and will
continue to have sufficient unencumbered assets after the payment of secured obligations and administrative expenses to assure
Landlord that sufficient funds will be available to fulfill the obligations of Tenant under this Lease and there shall have been
deposited with Landlord, or the Bankruptcy Court shall have entered an order segregating sufficient cash payable to Landlord, and/or
Tenant’s trustee or debtor-in-possession shall have been granted a valid and perfected first lien and security interest and/or
mortgage in property of Tenant, Tenant’s trustee or the debtor-in-possession, acceptable as to value and kind to Landlord, to secure
to Landlord the obligation of Tenant, Tenant’s trustee or the debtor-in-possession to cure the defaults under this Lease, monetary
and/or nonmonetary, within the time periods set forth above.

 

22.3 Subsequent
Petitions. In the event that this Lease is assumed in accordance with Section 23.2, and thereafter Tenant is liquidated or files or
has filed against it a subsequent petition under Chapter 7 or Chapter 11 of the Bankruptcy Code, Landlord may, at its option, terminate
this Lease and all right of Tenant hereunder, by giving Tenant notice of its election to so terminate within thirty (30) days after the
occurrence of either of such events.

 

22.4 Adequate
Assurance. If Tenant’s trustee or the debtor-in-possession has assumed the Lease pursuant to the terms and provisions of Section 23.1
or 23.2 for the purposes of assigning (or elects to assign) this Lease, this Lease may be so assigned only if the proposed assignee has
provided adequate assurance of future performance of all of the terms, covenants and conditions of this Lease to be performed by Tenant.
Landlord shall be entitled to receive all cash proceeds of such assignment. As used herein, “adequate assurance of future performance”
shall mean that no less than each of the following conditions has been satisfied:

 

(a) The
proposed assignee has furnished Landlord with either (i) a current financial statement audited by a certified public accountant indicating
a net worth and working capital in amounts which Landlord reasonably determines to be sufficient to assure the future performance by such
assignee of guarantees, in form and substance satisfactory to Landlord, from one or more persons with a net worth which Landlord reasonably
determines to be sufficient to secure the Tenant’s obligations hereunder, and information with respect to the proposed assignee’s management
ability, expertise and experience in Tenant’s business and Landlord has reasonably determined that the proposed assignee has the management
expertise and experience to operate the business conducted on the Leased Premises.

 

(b) Landlord
has obtained all consents or waivers from others required under any lease, mortgage, financing arrangement or other agreement by which
Landlord is bound to permit Landlord to consent to such assignment without violating the terms of any such agreements.

 

22.5 Use
and Occupancy Charges. When, pursuant to the Bankruptcy Code, Tenant’s trustee or the debtor-in-possession shall be obliged to pay
reasonable use and occupancy charges for the use of the Leased Premises, such charges shall not be less than the Annual Rent, Tenant’s
pro rata share of all Operating Expenses, and such other amounts of Rent hereunder.

 

22.6 No
Transfer In Bankruptcy Without Consent. Neither the whole nor any portion of Tenant’s interest in this Lease or its estate in the
Leased Premises shall pass to any trustee, receiver, assignee for the benefit of creditors, or any other person or entity, or otherwise
by operation of law under the laws of any state having jurisdiction of the person or property of Tenant unless Landlord shall have consented
to such transfer in writing. No acceptance by Landlord of installment payments of rent or any other payments from any such trustee, receiver,
assignee, person or other entity shall be deemed to constitute such consent by Landlord nor shall it be deemed a waiver of Landlord’s
right to terminate this Lease for any transfer of Tenant’s interest under this Lease without such consent.

 

23.
Condemnation.

 

23.1 If
the whole of the Leased Premises shall be taken by condemnation or eminent domain, then the Term hereof shall cease as of the day of the
vesting of title or as of the day possession shall be so taken, whichever is earlier.

 

23.2 If
only a portion of the Leased Premises or the Building of which it is part shall be taken by condemnation or eminent domain, or if
any or all of the buildings, parking facilities, Common Areas, or common or public facilities located within the Landlord Parcel are
so taken, Landlord shall be entitled to terminate this Lease, effective as of the day of the vesting of title or as of the day
possession shall be so taken, whichever is earlier, upon giving written notice thereof to Tenant, but if Landlord does not elect to
so terminate this Lease, it shall restore the Leased Premises to an architectural unit as nearly like its condition prior to such
taking as shall be practicable; but such work shall not exceed the scope of the work, if any, to be done by Landlord in originally
constructing the Leased Premises. Landlord shall notify Tenant of its election either to terminate or to rebuild not later than
ninety (90) days after any such taking. If this Lease is not terminated, as hereinbefore provided, all of the terms hereof shall
continue in effect, but the Annual Rent, or a fair and just proportion thereof, according to the nature and extent of the damage to
the Leased Premises, shall be suspended or abated until Landlord’s work is completed and Tenant shall, upon the completion by
Landlord of the restoration of the Leased Premises as aforesaid, do all work required of Tenant to occupy the Leased Premises
including the restoration and replacement of all improvements, alterations, additions, fixtures, signs, trade equipment, furniture,
furnishings and other installations necessary for Tenant’s business.

 

    Page 15

     

    

 

 

23.3 All
damages whatsoever awarded for such taking, whether for the whole or a part of the Leased Premises, shall belong to and be the property
of Landlord, provided, however, that Tenant shall be entitled to any amounts specifically awarded to it for the taking of its trade furniture
or fixtures.

 

 23.4 If this Lease is so terminated, all Rent shall be prorated to the date of termination.

 

24.
Notices.

 

24.1 All
notices required by and notices given pursuant to this Lease shall be in writing and shall be given by personal delivery, by United States
mail or by United States express mail or other established express delivery service (such as Federal Express), postage or delivery charge
prepaid, return receipt requested, addressed to the person and address designated below or, in the absence of such designation, to the
person and address shown on the then current real property tax rolls of the county in which the Landlord Parcel is located. Notices may
be by email if receipt is acknowledged by the recipient(s) below. All notices to Landlord or Tenant shall be sent to the person and address
set forth below:

 

	 	Landlord:	Emerald Town, LLC PO Box 2579

	 
	 	 	Eagle, ID 83616	 
	 	 	Phone:	 
	 	 	EM:	 
	 	 	 	 
	 	Tenant:	Kyle’s Custom Wood Shop, Inc.

	 
	 	 	 10849 W. Emerald Street	 
	 	 	 Boise,
ID 83713	 
	 	 	Phone:	 
	 	 	EM:	 

 

The person and
address to which notices are to be given may be changed at any time by any party upon written notice to the other party. All notices given
pursuant to this Lease shall be deemed given upon receipt. For the purpose of this Lease, the term “receipt”
shall mean the earlier of any of the following: (i) the date of delivery of the notice or other document to the address specified
pursuant to this Section as shown on the return receipt, (ii) the date of actual receipt of the notice or other document by the person
or entity specified pursuant to this Section, or (iii) in the case of refusal to accept delivery or inability to deliver the notice or
other document, the earlier of (a) the date of the attempted delivery or refusal to accept delivery, (b) the date of the postmark on the
return receipt, or (c) the date of receipt of notice of refusal or notice of non-delivery by the sending party.

 

25.
Estoppel Certificates.

 

Within three (3)
business days after written request by Landlord, Tenant shall certify in writing to all persons designated by Landlord (provided Tenant
can do so truthfully): (1) that Landlord has performed all of its obligations and is not in default under the Lease; (2) that the Lease
has not been amended (except as otherwise stated) and that the Lease, as amended, is in full force and effect; and (3) such other information
as Landlord may reasonably request, or which any prospective purchaser or encumbrancer may reasonably require. Each person receiving such
certification may rely thereon for all purposes. Tenant’s failure to execute the requested certificate shall be deemed to constitute such
a certification to the extent permitted by this Section.

 

26. Financial
Statements. Upon Landlord’s written request to facilitate Landlord’s financing or a sale of the Landlord Parcel to a prospective buyer,
Tenant shall furnish Landlord with financial statements (including, without limitation, operating statements including an annual profit
and loss statement for the individual store unit covered by this Lease) reflecting Tenant’s current financial condition, and written evidence
of current ownership or managing and controlling interests in Tenant and in any entities which control or manage Tenant (which written
evidence shall include, without limitation, the names of all existing managers, shareholders and partners, as applicable, of record and
their respective management’s ownership interests as of the date of such writing), which financial statements and written evidence shall
be certified as being true and correct by an authorized agent of Tenant.

 

27.
General Provisions.

 

27.1 The
Section and Section headings of this Lease are for convenience only and are not intended to define, limit or construe the contents of
the Section or Section.

 

27.2 Neither
this Lease nor any affidavit or other statement or memorandum disclosing the rent payable or other provisions of this Lease shall be recorded
by Tenant. Landlord may record a Memorandum of Lease.

 

    Page 16

     

    

 

28.3
The terms and conditions hereof shall be bound upon and inure to the benefit of the respective parties, their administrators, executors,
successors and assigns.

 

27.4 No
waiver of any covenant, condition or provision of this Lease, including this one, shall be deemed valid unless made in writing and executed
by Landlord. No waiver of any covenant or condition of this Lease by Landlord shall be deemed to imply or constitute a further waiver
of the same covenant or condition or of any other covenant or condition of this Lease. Whenever in this Lease Landlord reserves or is
given the right and power to give or withhold its consent to any action on the part of Tenant, such right and power shall not be exhausted
by the exercise on one or more occasions but shall be a continuing right and power for the entire Term.

 

27.5 Each
covenant, agreement and provision of this Lease shall be construed to be a separate covenant, agreement and provision. If any covenant,
agreement or provision of this Lease or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable,
the remainder of this Lease, or the application of such covenant, agreement or provision to any person or circumstances other than those
as to which such covenant, agreement or provision is invalid or unenforceable, shall not be affected thereby and each covenant, agreement
and provision of this Lease shall be valid and enforceable to the extent permitted by law.

 

27.6 In
the event the Tenant hereunder shall be a corporation, the parties executing this Lease on behalf of Tenant hereby covenant and warrant
that they are duly authorized to execute and deliver this Lease on behalf of said corporation, that Tenant is a duly qualified corporation
and all steps have been taken prior to the date hereof to qualify Tenant to do business in Idaho; all franchise and corporate taxes have
been paid to date; and future forms, reports, fees and other documents necessary to comply with applicable laws will be filed when due.

 

27.7 Each
party represents and warrants that it has not dealt with or contracted with any broker, agent or finder to act in its or their behalf
in connection with this Lease except as disclosed by the parties to each other. Each party agrees to indemnify, defend, protect and hold
harmless the other party from all liabilities, claims, damages, expenses (including, without limitation, reasonable attorneys’ fees and
reasonable attorneys’ fees on any appeal), judgments, proceedings and causes of action of any kind whatsoever arising from any misrepresentation
by the indemnifying party under this Section.

 

27.8 It
is understood that there are no oral agreements between the parties hereto affecting this Lease, and this Lease supersedes and cancels
any and all previous negotiations, arrangements, agreements and understanding, whether verbal or reduced to writing, if any, between the
parties hereto or displayed by Landlord to Tenant with respect to the subject matter thereof, and none thereof shall be used to interpret
or construe this Lease. Tenant does not rely and has not relied upon any written or printed marketing materials, brochures, or representations
prepared by or made by either Landlord or agent of Landlord, or any other person. All such representations or materials are superseded
by this Lease.

 

27.9 Landlord
reserves the absolute right to effect such other tenancies in the Building as Landlord, in the exercise of its sole business judgment,
determines. Tenant does not rely on the fact, nor does Landlord represent, that any specific tenant, type of tenant, or number of tenants
shall during the Term occupy any space in the Building. There are no other representations or warranties between the parties and all reliance
with respect to representations is solely upon representations and agreements contained in this document.

 

27.10 The
laws of the State of Idaho shall govern the validity, performance and enforcement of this Lease. Although the printed provisions of this
Lease were drawn by Landlord, this Lease shall be construed not for or against Landlord or Tenant, but this Lease shall be interpreted
in accordance with the general tenor of the language in an effort to reach an equitable result.

 

27.11 Submission
of this instrument for examination or signature by Tenant does not constitute a reservation of or an option for lease; it is not effective
as a lease or otherwise until execution and delivery by both Landlord and Tenant.

 

27.12 All
the terms, covenants and conditions contained in this Lease to be performed by either party if such party shall consist of more than one
person or organization, shall be deemed to be joint and several.

 

27.13 Any
addenda, and all exhibits, and riders, if any, attached hereto form a part of this Lease and shall be given full force and effect, as
fully as if set forth at length herein. This Lease and said addenda, exhibits, and riders, if any, so attached hereto and forming a part
hereof, set forth all the covenants, promises, agreements, conditions and understandings between Landlord and Tenant concerning the Leased
Premises, and there are no covenants, promises, agreements, conditions or understandings, either oral or written, between them other than
as are herein set forth. Tenant has not relied upon any representation of Landlord or its agents, other than any items contained in this
Lease, as an inducement to enter into this Lease. No alteration, amendment, change or addition to this Lease shall be binding upon Landlord
or Tenant unless reduced to writing and signed by each party.

 

    Page 17

     

    

 

27.14 Nothing
contained herein shall be deemed or construed by the parties hereto, nor by any third party, as creating the relationship of principal
and agent or of partnership or of joint venture between the parties hereto, it being understood and agreed that neither the method of
computation of rent, nor any other provision contained herein, nor any acts of the parties herein shall be deemed to create any relationship
between the parties hereto other than the relationship of Landlord and Tenant. Whenever herein the singular number is used the same shall
include the plural, and the masculine gender shall include the feminine and neuter genders.

 

27.15 Market
Rental Value Adjustment. If Tenant exercises its option to renew, the Monthly Rent shall be adjusted to the “Fair Market Rent”
of the Leased Premises as follows:

 

27.15.1 Four
months prior to the commencement of the Extension Term, the parties shall attempt to agree upon what the Fair Market Rent will be for
the Extension Term. If agreement cannot be reached, within thirty (30) days, then:

 

a. Landlord
and Tenant shall immediately appoint a mutually acceptable appraiser or broker to establish the new MRV within the next 30 days; or

 

b. Both
Landlord and Tenant 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
15 days thereafter, Landlord and Tenant shall each select an independent
third party appraiser or broker (“Consultant”) of their choice to act as an arbitrator (Note: the parties may not select any
brokers involved in negotiating the Lease). The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant
to act as a third arbitrator;

 

ii. The
3 arbitrators shall within 30
days of the appointment of the third arbitrator reach a decision as to the Fair Market Rent for the Leased Premises;

 

iii. If
either of the parties fails to appoint an arbitrator within the specified 15
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; and

 

 iv. The e cost of such arbitration shall be equally shared by Landlord and Tenant.

 

27.15.2.
When determining the Fair Market Rent, the Landlord, Tenant and Consultants shall consider the terms of comparable market transactions
which shall include, but not limited to, rent, rental adjustments, abated rent, lease term and financial condition of tenants.

 

28.
Exhibits:

 

		1.	Exhibit A: Site and Floor Plan

		2.	Exhibit B: Tenant Improvements

		3.	Schedule I: Legal Description

 

END: Signature Page and Exhibits to follow.

 

    Page 18

     

    

 

EXECUTED as of the day and year first above written.

 

	TENANT: KYLE’S CUSTOM WOOD SHOP, INC.	 
	 	 	 
	By:	/s/ Kenneth Yuan	 
	 	 	 
	Its:	CEO	 

 

 

	LANDLORD: EMERALD TOWN, LLC	 
	 	 	 
	By:	/s/	 
	 	 	 
	Its:	Manager / Member	 

 

 

Page 19Exhibit 10.23

 

BASIC LEASE INFORMATION

 

LEASE DATE:
December 1, 2017

 

TENANT: High
Mountain Door and Trim, Inc.

 

TENANT’S ADDRESS:
4915-4935 Brookside Ct, Reno, NV 89502

 

LANDLORD: Sage
Partnership, a Nevada General Partnership, dba McKenzie Properties

 

LANDLORD’S ADDRESS:
P.O. Box 1209, Reno, Nevada 89504

 

PROJECT:
4915-4935 Brookside Court as shown on the project site plan attached hereto as Exhibit “A”, incorporated herein (“Site
Plan”).

 

BUILDING:
A 23,115 square foot building located at on Brookside Court, commonly known as 4915- 4935 Brookside Ct., Reno, NV 89502

 

PREMISES:
23,115 square feet of rentable space located at 4915-4935 Brookside Way, Reno, NV, as outlined in red on the Site Plan.

 

PERMITTED USE:
Warehouse and administrative offices related to the foregoing.

 

COMMENCEMENT DATE:
January 1, 2018

 

LENGTH OF TERM:
Forty-Eight (48) months.

 

	BASE RENT: See Section 7.	 	 	 
	Base Rent Month 1:	 	$	0.00	 
	Base Rent Months 2 through 12:	 	$	9,708.00	 
	Base Rent Months 13 through 24:	 	$	10,000.00	 
	Base Rent Months 25 through 36:	 	$	10,300.00	 
	Base Rent Months 37 through 48:	 	$	10,609.00	 

 

Estimated First Year Basic Operating
Cost: $1,965.00 per month, subject to Basic Operating Cost Adjustment pursuant to Section 8.3 of this Lease. Basic Operating Cost
payments shall commence on January 1, 2018. 

 

SECURITY DEPOSIT: $11,673.00

 

TENANT’S
PROPORTIONATE SHARE: “Tenant’s Proportionate Share” with respect to the Building shall mean a fraction, the numerator
of which is the rentable area of the Premises and the denominator of which is the rentable area contained in the Building; and with respect
to the Project shall mean a fraction, the numerator of which is the rentable area of the Premises and the denominator of which is the
rentable area of all buildings within the Project. Rentable area shall be defined by Building Owners and Management Association (SOMA)
standards.

 

Tenant’s Proportionate
Share of Building: 100%

 

Tenant’s Proportionate
Share of Project: 100%

 

     

     

    

 

LEASE

 

THIS LEASE
is made as of this 1st day of December 2017, by and between Sage Partnership, a Nevada General Partnership, dba McKenzie Properties (“Landlord”)
and High Mountain Door and Trim, Inc., (“Tenant”).

 

	1.	PREMISES:

 

Landlord
leases to Tenant and Tenant leases from Landlord, upon the terms and conditions hereinafter set forth the Premises described in the Basic
Lease Information.

 

	2.	LEASE TERMS:

 

The terms
provided in the Basic Lease Information attached hereto at pages i and ii are hereby incorporated into this Lease.

 

	3.	POSSESSION AND LEASE COMMENCEMENT:

 

3.1 Existing
Improvements. In the event this Lease pertains to a Premises in which the interior improvements have already been constructed
(“Existing Improvements”), the provisions of this Section shall apply. If for any reason Landlord cannot deliver possession
of the Premises to Tenant on the Estimated Commencement Date, Landlord shall not be subject to any liability therefor, nor shall Landlord
be in default hereunder, and Tenant agrees to accept possession of the Premises at such time as Landlord is able to deliver the same,
which date shall then be deemed the Commencement Date. Tenant shall not be liable for any Rent for any period prior to the Commencement
Date. Tenant acknowledges that Tenant has inspected and accepts the Premises in their present condition, broom clean, “as is,”
as suitable for the purpose for which the Premises are leased. Tenant agrees that said Premises and other improvements are in good and
satisfactory condition as of the date possession was taken. Tenant further acknowledges that no representations as to the condition or
repair of the Premises nor promises to alter, remodel or improve the Premises have been made by Landlord unless such are expressly set
forth in this Lease and/or the work letter attached hereto as Exhibit “B”, incorporated herein, which sets forth Premises
improvements to be completed by the Parties, if any (“Work Letter”).

 

3.2 Construction
of Improvements. In the event this Lease pertains to a Building to be constructed or improvements to be constructed
within a Building, the provisions of this Section shall apply in lieu of the provisions of the Existing Improvements set forth in
Section 3.1 above. The Work Letter sets forth any and all Premises improvements to be completed, along with the estimated
construction timeline for said improvements. If for any reason Landlord cannot deliver possession of the Premises to Tenant on the
Estimated Completion Date, Landlord shall not be subject to any liability therefor, nor shall Landlord be in default hereunder, and
Tenant agrees to accept possession of the Premises at such time as Landlord is able to deliver the same, which date shall then be
deemed the Commencement Date. Tenant shall not be liable for any Rent for any period prior to the Commencement Date. In the event of
any dispute as to substantial completion of work performed or required to be performed by Landlord pursuant to the Work Letter, the
certificate of Landlord’s architect or general contractor shall be conclusive. Substantial completion shall have occurred
notwithstanding Tenant’s submission of a punchlist to Landlord, which Tenant shall submit, if at all, within thirty (30) days after
the Completion Date. After the Completion Date, Tenant shall, upon demand, execute and deliver to Landlord a letter of acceptance of
delivery of the Premises.

 

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	4.	TERM:

 

The Term
of this Lease shall commence on the Commencement Date and continue in full force and effect for the number of months specified in the
Basic Lease Information, unless otherwise extended pursuant to Exhibit “C” attached hereto and incorporated herein (“Option
to Extend”) or earlier terminated as otherwise provided herein. If the Commencement Date is a date other than the first day of the
calendar month, the Term shall be the number of months of the Term in addition to the remainder of the calendar month following the Commencement
Date.

 

	5.	USE:

 

5.1
General. Tenant shall use the Premises for the Permitted Use and for no other use or purpose. Tenant shall use best efforts
to ensure that Tenant’s employees, agents, customers, visitors, invitees, licensees, contractors, assignees and subtenants (collectively,
“Tenant’s Parties”) abide by the Parking Density at all times. Tenant and Tenant’s Parties shall have the nonexclusive right
to use, in common with other tenants of the Building or Project, the parking areas and driveways of the Project, subject to such rules
and regulations as Landlord may from time to time prescribe.

 

5.2 Limitations. Tenant
shall not permit any odors, smoke, dust, gas, substances, noise or vibrations to emanate from the Premises, nor take any action
which would reasonably constitute a nuisance or would disturb, obstruct or endanger any other tenants of the Building or Project or
interfere with said other tenants’ use of their respective premises. Storage outside the Premises of materials, vehicles or
any other items is prohibited. Tenant shall not use or allow the Premises to be used for any improper, immoral, unlawful or
objectionable purpose, nor shall Tenant cause or maintain or permit any nuisance in, on or about the Premises. Tenant shall not
commit or suffer the commission of any waste in, on or about the Premises. Tenant shall not allow any sale by auction upon the
Premises, or place any loads upon the floors, walls or ceilings which endanger the structure, or place any Hazardous Materials in
the drainage system of the Premises, Building or Project. No waste, materials or refuse shall be dumped upon or permitted to remain
outside the Premises except in trash containers placed inside exterior enclosures designated for that purpose by Landlord. Landlord
shall not be responsible to Tenant for the non-compliance by any other tenant or occupant of the Building or Project with any of the
above-referenced rules or any other terms or provisions of such tenant’s or occupant’s lease or other contract.

 

5.3 Compliance with
Regulations. By entering the Premises, Tenant accepts the Premises in the condition existing as of the date of such entry,
subject to outstanding punchlist items provided, if any, pursuant to Section 3.2 above, and further subject to all existing or
future applicable municipal, state and federal and other governmental statutes, regulations, laws and ordinances, including zoning
ordinances and regulations governing and relating to the use, occupancy and possession of the Premises and the use, storage,
generation and disposal of Hazardous Materials (hereinafter defined} in, on and under the Premises (collectively
“Regulations”). Except for pre-existing violations, Tenant shall, at Tenant’s sole expense, strictly comply with all
Regulations now in force or which may hereafter be in force relating to the Premises and the use of the Premises and/or the use,
storage, generation of Hazardous Materials in, on and under the Premises. Tenant shall at its sole cost and expense obtain any and
all licenses or permits necessary for Tenant’s use of the Premises. Tenant shall promptly comply with the requirements of any board
of fire underwriters or other similar body now or hereafter constituted. Tenant shall not do or permit anything to be done in, on,
or about the Premises or bring or keep anything which will in any way increase the rate of any insurance upon the Premises, Building
or Project, or upon any contents therein or cause a cancellation of said insurance or otherwise affect said insurance in any manner.
Tenant shall indemnify, defend, protect and hold Landlord harmless from and against any loss, cost, expense, damage, attorneys’ fees
or liability arising out of the failure of Tenant to comply with any applicable law or comply with the requirements as set forth
herein. Landlord represents that to Landlord’s knowledge, the Premises complies with all applicable current municipal, state,
federal and other governmental statutes as of the date of the commencement of the Term, including but not limited to the
“Americans With Disabilities Act”. Landlord warrants that all operating systems within the Premises shall be in good
working condition for a period of one (1) year from the Commencement Date and Landlord shall make any necessary repairs to such
operating systems during such one (1) year period, at Landlord’s sole cost and expense.

 

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5.4
Hazardous Wastes. Tenant shall not cause, or allow any of Tenant’s Parties to cause,
any Hazardous Materials to be used, generated, stored or disposed of on or about the Premises, Building or the Project. As used in this
Lease, “Hazardous Materials” shall include, but not be limited to, hazardous, toxic and radioactive materials and those substances
defined as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances,”
or other similar designations in any federal, state, or local law, regulation, or ordinance. Landlord shall have the right at all reasonable
times to inspect the Premises and to conduct tests and investigations to determine whether Tenant is in compliance with the foregoing
provisions. The costs of all such inspections, tests and investigations shall be considered a Basic Operating Cost, to be borne by Tenant
as set forth herein. Tenant shall indemnify, defend, protect and hold Landlord harmless from and against all liabilities, losses, costs
and expenses, demands, causes of action, claims or judgments directly or indirectly arising out of the use, generation, storage or disposal
of Hazardous Materials by Tenant or any of Tenant’s Parties, which indemnity shall include, without limitation, the cost of any required
or necessary repair, cleanup or detoxification, and the preparation of any closure or other required plans, whether such action is required
or necessary prior to or following the termination of this Lease. Neither the written consent by Landlord to the use, generation, storage
or disposal of Hazardous Materials nor the strict compliance by Tenant with all laws pertaining to Hazardous Materials shall excuse Tenant
from Tenant’s obligation of indemnification pursuant to this Section. Tenant’s obligations pursuant to the foregoing indemnity shall survive
the termination of this Lease.

 

5.5 Matters
of Record. The parties agree that this Lease may be subject to the effect of covenants, conditions, restrictions,
easements, mortgages or deeds of trust, ground leases, rights of way of record, and any other matters or documents of record. Tenant
agrees that as to its leasehold estate, Tenant shall conform to and shall not violate the terms of any covenants, conditions or
restrictions of record which may now or hereafter encumber the Building or Project (“Restrictions”). This Lease is and at
all times will be subject and subordinate to all present and future Restrictions. The foregoing will be self-operative and no
further instrument of subordination will be required. Tenant’s failure to keep and observe the Restrictions shall constitute an
Event of Default under this Lease in a manner as if the same were contained herein as covenants. Landlord reserves the right, from
time to time, to amend or supplement the Restrictions and to adopt and promulgate additional Restrictions applicable to the
Premises, Building or Project. Tenant agrees to comply with and observe all such Restrictions and any subsequent amendments thereto
and supplements thereof. In the event of a direct conflict between this Lease and the Restrictions, the Restrictions shall
control.

 

	6.	RULES AND REGULATIONS:

 

Tenant shall
faithfully observe and comply with any rules and regulations in Exhibit “E” or Landlord may from time to time prescribe in writing
for the purpose of maintaining the proper care, cleanliness, safety, traffic flow and general order of the Premises, Building and/or Project
provided such rules and regulations are imposed on a nondiscriminatory basis. Tenant shall cause Tenant’s Parties to comply with such
rules and regulations. Landlord shall not be responsible to Tenant for the non-compliance by any other tenant or occupant of the Building
or Project with any of the rules and regulations.

 

Tenant
shall not be permitted to leave any vehicles outside the premises overnight under any circumstances without the prior written consent
of Landlord. Tenant shall not be permitted at any time to store debris (equipment, materials, or any other matter) of any kind outside
the Premises unless otherwise specifically permitted by the Work Letter. Tenant shall not be permitted to have any pets on the Premises
at any time.

 

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	7.	RENT:

 

7.1
Base Rent. Tenant shall pay to Landlord, without demand throughout the Term, Base Rent
as specified in the Basic Lease Information, payable in monthly installments in advance on or before the first day of each calendar month,
in lawful money of the United States, without deduction or offset whatsoever, at the address specified in the Basic Lease Information
or to such other place as Landlord may from time to time designate in writing. Base Rent for the first full month of the Term shall be
paid by Tenant upon the Effective Date of this Lease. If the obligation for payment of Base Rent commences on a date other than the first
day of a calendar month, then Base Rent shall be prorated and the prorated installment shall be paid to Landlord by Tenant upon the Effective
Date.

 

7.2
Additional Rent. All monies other than Base Rent required to be paid by Tenant hereunder,
including, but not limited to: (i) the interest and late charge described in the Default Section below, (ii) any monies spent by Landlord
in seeking any remedy, and (iii) Tenant’s Proportionate Share of the Basic Operating Cost, as specified below, shall be considered additional
rent (“Additional Rent”). “Rent” shall mean Base Rent and Additional Rent.

 

	8.	BASIC OPERATING COST:

 

8.1
Basic Operating Cost. In addition to the Base Rent required to be paid hereunder, Tenant
shall pay as Additional Rent, Tenant’s Proportionate Share of the Basic Operating Cost in the manner set forth below. Landlord shall account
for each item of Basic Operating Cost as a cost attributable to the Building or to the Project, and unless provided to the contrary in
this Lease, Tenant shall pay the applicable Tenant’s Proportionate Share of each such Basic Operating Cost, as set forth herein. Basic
Operating Cost shall mean all expenses and costs of every kind and nature which Landlord shall pay or become obligated to pay, because
of or in connection with the management, maintenance, preservation and operation of the Building or Project and its supporting facilities,
including, without limitation, the following:

 

8.1.1
Taxes. “Taxes”, including, without limitation, all real property taxes, possessory interest taxes, business or license
taxes or fees, service payments in lieu of such taxes or fees, annual or periodic license or use fees, excises, transit charges, housing
fund assessments, open space charges, assessments, levies, fees or charges, general and special, ordinary and extraordinary, unforeseen
as well as foreseen, of any kind (including fees “in-lieu” of any such tax or assessment) which are assessed, levied, charged,
confirmed, or imposed by any public authority upon the Building or Project, its operations or the Rent or any portion or component thereof
(all of the foregoing being hereinafter collectively referred to as “real property taxes”), or any tax imposed in substitution,
partially or totally, of any tax previously included within the definition of real property taxes, or any additional tax the nature of
which was previously included within the definition of real property taxes, except: (a) inheritance or estate taxes imposed upon or assessed
against the Building or Project, or any part thereof or interest therein, and (b) an increase in taxes as a result of the sale of the
Building or Project or any portion thereof by Landlord which results in the uncapping of any limit or restriction on assessment or rate
increase, and (c) taxes computed upon the basis of net income of Landlord or the owner of any interest therein, except as otherwise provided
in the following sentence. “Taxes” shall also include any taxes, assessments, or any other fees imposed by any public authority
upon or measured by the monthly rental or other charges payable hereunder, including, without limitation, any gross income tax or excise
tax levied by the local governmental authority in which the Building or Project is located, the federal government, or any other governmental
body with respect to receipt of such rental, or upon, with respect to or by reason of the development, possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy by Tenant of the Premises or any portion thereof, or upon this transaction
or any document to which Tenant is a party creating or transferring an interest or an estate in the Premises. In the event Tenant’s
Proportionate Share of Taxes may be billed directly to Tenant from the appropriate taxing and/or governmental authority, Tenant shall
pay Tenant’s Proportionate Share of Taxes directly to said taxing and/or governmental authority rather than having Landlord pay
said Taxes, requiring reimbursement by Tenant. In the event that it shall not be lawful for Tenant to reimburse Landlord for all or any
part of such Taxes, the Base Rent payable to Landlord under this Lease shall be revised to net to Landlord the same net rental after
imposition of any such Taxes by Landlord as would have been payable to Landlord prior to the payment of any such Taxes. In addition to
and wholly apart from Tenant’s obligation to pay Tenant’s Proportionate Share of Basic Operating Cost, Tenant shall be responsible
for, and shall pay prior to delinquency, any taxes or governmental service fees, possessory interest taxes, fees or charges in lieu of
any such taxes, capital levies, or other charges imposed upon, levied with respect to or assessed against its personal property, on the
value of the alterations, additions or improvements within the Premises, and on Tenant’s interest pursuant to this Lease. To the
extent that any such taxes are not separately assessed or billed to Tenant, Tenant shall pay the amount thereof as invoiced to Tenant
by Landlord.

 

8.1.2
Insurance. All insurance premiums and costs, including but not limited to, any deductible amounts, premiums and cost of insurance
incurred by Landlord, as more fully set forth below.

 

8.1.3 Repairs
and Improvements. Repairs, replacements and general maintenance for the Premises, Building and
Project, including, without limitation, those repairs, replacements and general maintenance of the public and common areas of the
Project as set forth in Section 11 below (except for those repairs expressly made the financial responsibility of Landlord pursuant
to the terms of this Lease, repairs to the extent paid for by proceeds of insurance or by Tenant or other third parties, and
alterations attributable solely to other tenants of the Building or Project). Such repairs, replacements, and general maintenance
shall include the cost of any capital improvements made to or capital assets acquired for the Project, Building or Premises before
or after the Commencement Date that reduce any other Basic Operating Cost, are reasonably necessary for the health and safety of the
occupants of the Building or Project, or are made to the Project, Building or Premises by Landlord before or after the Effective
Date of this Lease and are required under any governmental law, regulation, or requirements for project approval, such costs or
allocable portions thereof to be amortized over such reasonable period as Landlord shall determine, together with interest on the
unamortized balance at the “prime rate” charged at the time such improvements or capital assets are constructed or
acquired by Wells Fargo Bank, N.A. (San Francisco), plus two (2) percentage points, but in no event more than the maximum rate
permitted by law.

 

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8.1.4 Services.
All expenses relating to maintenance, janitorial and service agreements and services, and costs of supplies and equipment used in
maintaining the Premises, Building and Project and the equipment therein and the adjacent sidewalks, driveways, parking and service
areas, including, without limitation, snow removal, exterior building maintenance, and landscaping.

 

8.1.5 Utilities. Utilities
which benefit all or a portion of the Premises, Building or Project.

 

8.1.6
Management Fee. A management and accounting cost recovery fee equal to ten percent (10%) of the Basic Operating Cost.

 

8.1.7
Legal and Accounting. All reasonable legal and accounting expenses relating to the Building or Project, including the cost of
audits by certified public accountants.

 

8.1.8
Hazardous Materials Testing. All costs associated with reasonable inspections, tests and investigations required in determining
Hazardous Materials compliance pursuant to Section 5.4 above.

 

8.1.9
Required Agreements. In the event the Building or Project requires and/or is subject to a joint maintenance agreement, reciprocal
easement agreement or any other similar agreement with neighboring property(ies), Tenant agrees to cooperate and bear Tenant’s
Proportionate Share of all reasonable costs, obligations, and/or maintenance required thereunder.

 

In the
event that the Building is not fully occupied during any fiscal year of the Term as determined by Landlord, an adjustment shall be made
in computing the Basic Operating Cost for such year so that Tenant pays an equitable portion of all variable items of Basic Operating
Cost, as reasonably determined by Landlord; provided, however, that in no event shall Landlord be entitled to collect in excess of one
hundred percent (100%) of the total Basic Operating Cost from all of the tenants in the Building including Tenant.

 

Basic Operating
Cost shall not include specific costs incurred for the account of, separately billed to and paid by specific tenants. Notwithstanding
anything herein to the contrary, in any instance wherein Landlord, in Landlord’s sole discretion, deems Tenant to be responsible for any
amounts greater than Tenant’s Proportionate Share, Landlord shall have the right to allocate said costs accordingly, and shall, upon demand,
provide evidence thereof to Tenant.

 

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8.2
Payment of Estimated Basic Operating Cost. “Estimated Basic Operating Cost” for any particular year shall mean
Landlord’s estimate of the Basic Operating Cost for such fiscal year made prior to commencement of such fiscal year as hereinafter provided.
Landlord shall have the right from time to time to revise its fiscal year and interim accounting periods so long as the periods as so
revised are reconciled with prior periods in accordance with generally accepted accounting principles applied in a consistent manner.
During the last month of each fiscal year during the Term, or as soon thereafter as practicable, Landlord shall give Tenant written notice
of the Estimated Basic Operating Cost for the ensuing fiscal year. Tenant shall pay Tenant’s Proportionate Share of the Estimated Basic
Operating Cost with installments of Base Rent for the fiscal year to which the Estimated Basic Operating Cost applies in monthly installments
on the first day of each calendar month during such year, in advance. If at any time during the course of the fiscal year, Landlord determines
that Basic Operating Cost is projected to vary from the then Estimated Basic Operating Cost by more than ten percent (10%), Landlord may,
by written notice to Tenant, revise the Estimated Basic Operating Cost for the balance of such fiscal year, and Tenant’s monthly installments
for the remainder of such year shall be adjusted so that by the end of such fiscal year Tenant has paid to Landlord Tenant’s Proportionate
Share of the revised Estimated Basic Operating Cost for such year.

 

8.3
Computation of Basic Operating Cost Adjustment. “Basic Operating Cost Adjustment” shall mean the difference between
Estimated Basic Operating Cost and actual Basic Operating Cost for any fiscal year determined as hereinafter provided. Within one hundred
twenty (120) days after the end of each fiscal year, as determined by Landlord, or as soon thereafter as practicable, Landlord shall deliver
to Tenant a statement of the actual Basic Operating Cost for the fiscal year just ended, accompanied by a computation of Basic Operating
Cost Adjustment for said previous fiscal year. If such statement shows that Tenant’s payment based upon Estimated Basic Operating Cost
is less than Tenant’s Proportionate Share of the actual Basic Operating Cost, then Tenant shall pay to Landlord the difference within
twenty (20) days after receipt of such statement. If such statement shows that Tenant’s payments of Estimated Basic Operating Cost exceed
Tenant’s Proportionate Share of the actual Basic Operating Cost, then (provided that Tenant is not in default under this Lease) Landlord
shall apply said overpayment by Tenant against Tenant’s Proportionate Share of Basic Operating Cost due or next becoming due. If this
Lease has been terminated or the Term hereof has expired prior to the date of such statement, then the Basic Operating Cost Adjustment
shall be paid by the appropriate party within twenty (20) days after the date of delivery of the statement.

 

8.4
Net Lease. This shall be a net Lease and Base Rent shall be paid to Landlord absolutely net of all costs and expenses, except
as specifically provided to the contrary in this Lease. The provisions for payment of Basic Operating Cost and the Basic Operating Cost
Adjustment are intended to pass on to Tenant and reimburse Landlord for all costs and expenses of the nature described herein incurred
in connection with the ownership, maintenance and operation of the Building or Project and such additional facilities now and in subsequent
years as may be determined by Landlord to be necessary to the Building or Project.

 

8.5 Tenant Audit. In
the event that Tenant shall dispute the amount set forth in any statement provided by Landlord herein, Tenant shall have the right,
not later than twenty (20) days following the receipt of such statement and upon the condition that Tenant shall first deposit with
Landlord the full amount in dispute, to cause Landlord’s books and records with respect to Basic Operating Cost for such fiscal year
to be audited by certified public accountants selected by Tenant and subject to Landlord’s reasonable right of approval. The Basic
Operating Cost Adjustment shall be appropriately adjusted on the basis of such audit. If such audit discloses a liability for a
refund in excess of ten percent (10%) of Tenant’s Proportionate Share of the Basic Operating Cost Adjustment previously reported,
the cost of such audit shall be borne by Landlord; otherwise the cost of such audit shall be paid by Tenant. If Tenant shall not
request an audit in accordance with the provisions of this Section, within twenty (20) days after receipt of Landlord’s statement
provided pursuant to the provisions herein, such statement shall be final and binding for all purposes hereof.

 

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	9.	INSURANCE AND INDEMNIFICATION:

 

9.1
Landlord’s Insurance. Landlord agrees to maintain insurance insuring the Premises or, in the event the Premises is not a
stand-alone building, the building in which the Premises is located, against fire, lightning, vandalism and malicious mischief (including,
at Landlord’s sole election, “All Risk” coverage, earthquake, and/or flood insurance), in an amount not less than eighty percent
(80%) of the replacement cost thereof, with deductibles and the form and endorsements of such coverage as selected by Landlord. Such insurance
may also include, at Landlord’s option, insurance against loss of Base Rent and Additional Rent, in an amount equal to the amount of Base
Rent and Additional Rent payable by Tenant for a period of at least twelve (12) months commencing on the date of loss. Such insurance
shall be for the sole benefit of Landlord and under Landlord’s sole control. Landlord shall not be obligated to insure any personal property,
including, without limitation, furniture, equipment, machinery, goods or supplies, which Tenant may keep or maintain in the Premises,
or any leasehold improvements, additions or alterations within the Premises. Landlord may also carry such other insurance as Landlord
may deem prudent or advisable, including, without limitation, liability insurance in such amounts and on such terms as Landlord shall
determine. Tenant shall be responsible for payment of any deductible under Landlord’s policy.

 

9.2 Tenant’s Insurance.

 

9.2.1
Personal Property Insurance. Tenant shall procure at Tenant’s sole cost and expense and keep in effect from the date of
this Lease and at all times until the end of the Term, insurance on all personal property and fixtures of Tenant and all improvements
made by or for Tenant to the Premises, insuring such property for its full replacement value.

 

9.2.2
Liability Insurance. Tenant shall procure at Tenant’s sole cost and expense and keep in effect from the date of this Lease
and at all times until the end of the Term either Comprehensive General Liability insurance or Commercial General Liability insurance
applying to the use and occupancy of the Premises and, if the Premises is not a stand-alone building, the building in which the Premises
is located, and any part of either, and any areas adjacent thereto, and the business operated by Tenant, or by any other occupant on
the Premises. Such insurance shall include Broad Form Contractual Liability insurance coverage insuring all of Tenant’s indemnity
obligations under this Lease. Such coverage shall have a minimum combined single limit of liability of at least One Million Dollars ($1,000,000.00),
and a general aggregate limit of Two Million Dollars ($2,000,000.00). Such policies shall be written to apply to all bodily injury, property
damage or loss, fire legal liability coverage, personal injury and other covered loss, however occasioned, occurring during the policy
term, shall be endorsed to add Landlord and any party holding an interest to which this Lease may be subordinated as an additional insured,
and shall provide that such coverage shall be primary and that any insurance maintained by Landlord shall be excess insurance only. Such
coverage shall also contain endorsements: (i) deleting any employee exclusion on personal injury coverage; (ii) including employees as
additional insureds; (iii) deleting any liquor liability exclusion; and (iv) providing for coverage of employer’s automobile non-ownership
liability. Such insurance shall provide for severability of interests; shall provide that an act or omission of one of the named insureds
shall not reduce or avoid coverage to the other named insureds; and shall afford coverage for all claims based on acts, omissions, injury
and damage, which claims occurred or arose (or the onset of which occurred or arose) in whole or in part during the policy period. Said
coverage shall be written on an “occurrence” basis, if available. If an “occurrence” basis form is not available,
Tenant must purchase “tail” coverage for the most number of years available, and tenant must also purchase “tail”
coverage or if the retroactive date of an “occurrence” basis form is changed so as to leave a gap in coverage for occurrences
that might have occurred in prior years. If a “claims made” policy is ever used, the policy must be endorsed so that Landlord
is given the right to purchase “tail” coverage should Tenant for any reason not do so or if the policy is to be cancelled
for nonpayment of premium.

 

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9.2.3
General Insurance Requirements. All coverages described in this Section shall list Landlord as an additional insured and
be endorsed to provide Landlord with thirty (30) days’ notice of cancellation or change in terms. If at any time during the Term the amount
or coverage of insurance which Tenant is required to carry under this Section is, in Landlord’s reasonable judgment, materially less than
the amount or type of insurance coverage typically carried by owners or tenants of properties located in the general area in which the
Premises are located which are similar to and operated for similar purposes as the Premises, Landlord shall have the right to require
Tenant to increase the amount or change the types of insurance coverage required under this Section. All insurance policies required to
be carried under this Lease shall be written by companies rated A-XII or better in “Best’s Insurance Guide” and authorized to
do business in Nevada. Any deductible amounts under any insurance policies required hereunder shall be subject to Landlord’s prior written
approval. In any event deductible amounts shall not exceed One Thousand Dollars ($1,000.00). Tenant shall deliver to Landlord on or before
the Commencement Date, and thereafter at least thirty (30) days before the expiration dates of the expiring policies, certified copies
of Tenant’s insurance policies, or a certificate evidencing the same issued by the insurer thereunder, showing that all premiums have
been paid for the full policy period; and, in the event Tenant shall fail to procure such insurance, or to deliver such policies or certificates,
Landlord may, at Landlord’s option and in addition to Landlord’s other remedies in the event of a default by Tenant hereunder, procure
the same for the account of Tenant, and the cost thereof shall be paid to Landlord as Additional Rent.

 

9.3
  Indemnification. Landlord shall not be liable to Tenant for any loss or damage to
person or property caused by theft, fire, acts of God, acts of a public enemy, riot, strike, insurrection, war, court order,
requisition or order of governmental body or authority or for any damage or inconvenience which may arise through repair or
alteration of any part of the Building or Project or failure to make any such repair, except as expressly otherwise provided in
Landlord’s Repairs, below. Tenant shall indemnify, defend by counsel acceptable to Landlord, protect and hold Landlord harmless from
and against any and all liabilities, losses, costs, damages, injuries or expenses, including reasonable attorneys’ fees and court
costs, arising out of or related to: (1) claims of injury to or death of persons or damage to property occurring or resulting
directly or indirectly from the use or occupancy of the Premises, or from activities of Tenant, Tenant’s Parties or anyone in or
about the Premises, Building or Project, or from any cause whatsoever; (2) claims for work or labor performed, or for materials or
supplies furnished to or at the request of Tenant in connection with performance of any work done for the account of Tenant within
the Premises, Building or Project; and (3) claims arising from any breach or default on the part of Tenant in the performance of any
covenant contained in this Lease. The foregoing indemnity shall not be applicable to claims arising from the active negligence or
willful misconduct of Landlord. The provisions of this Section shall survive the expiration or termination of this Lease with
respect to any claims or liability occurring prior to such expiration or termination.

 

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	10.	WAIVER OF SUBROGATION:

 

To the
extent permitted by law and without affecting the coverage provided by insurance to be maintained hereunder, Tenant waives any right to
recover against Landlord for: (a) damages for injury to or death of persons; (b) damages to property; (c) damages to the Premises or any
part thereof; and (d) claims arising by reason of the foregoing due to hazards covered by insurance to the extent of proceeds recovered
therefrom. This provision is intended to waive fully any rights and/or claims which might give rise to a right of subrogation in favor
of any insurance carrier. The coverage obtained by Tenant pursuant to this Lease shall include, without limitation, a waiver of subrogation
by the carrier which conforms to the provisions of this Section.

 

	11.	LANDLORD’S REPAIRS AND SERVICES:

 

Landlord
shall, at Landlord’s expense, maintain the roof, structural soundness of the structural beams of the roof, foundations and exterior walls
of the Premises, and if the Premises is not a stand-alone building, the building in which the Premises is located, in good repair, reasonable
wear and tear excepted. The term “exterior walls” as used herein shall not include windows, glass or plate glass, doors, special
store fronts or office entries. Landlord shall perform on behalf of Tenant and other tenants of the Building or Project, as an item of
Basic Operating Cost, the maintenance of the public and common areas of the Building or Project, including but not limited to the roof,
pest extermination, landscaped areas, parking areas, driveways, truck staging areas, rail spur areas, fire sprinkler systems, sanitary
and storm sewer lines, utility services, electric and telephone equipment servicing the Building or Project, exterior lighting, hot water,
heating and air conditioning systems (at Landlord’s election) and anything which affects the operation and exterior appearance of the
Building or Project, which determination shall be at Landlord’s sole discretion. Except for the expenses directly involving the items
specifically described in the first sentence of this Section, Tenant shall reimburse Landlord for all such costs in accordance with the
provisions herein. Any damage caused by or repairs necessitated by any act of Tenant may be repaired by Landlord at Landlord’s option
and at Tenant’s expense. Tenant shall immediately give Landlord written notice of any defect or need of repairs after which Landlord shall
have a reasonable opportunity to repair same. Landlord’s liability with respect to any defects, repairs, or maintenance for which Landlord
is responsible under any of the provisions of this Lease shall be limited to the cost of such repairs or maintenance.

 

	12.	TENANT’S REPAIRS:

 

Tenant
shall, at Tenant’s expense, maintain all parts of the Premises in a good clean and secure condition and promptly make all necessary repairs
and replacements, including but not limited to all windows, glass, doors, walls and wall finishes, floor covering, heating, ventilating
and air conditioning systems, truck doors, dock bumpers, dock plates and levelers, plumbing work and fixtures, downspouts, electrical
and lighting systems, and fire sprinklers, as applicable. Tenant shall, at Tenant’s expense, also perform regular removal of trash and
debris.

 

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Tenant shall,
in the event Landlord does not, as provided for above, at Tenant’s own expense, enter into a regularly scheduled preventive maintenance/service
contract with a maintenance contractor for servicing all hot water, heating and air conditioning systems and equipment within or serving
the Premises. The maintenance contractor and the contract must be approved by Landlord. The service contract must include all services
suggested by the equipment manufacturer within the operation/maintenance manual and must become effective and a copy thereof delivered
to Landlord within thirty (30) days after the Commencement Date. Tenant shall not damage any demising wall or disturb the integrity and
support provided by any demising wall and shall, at its sole expense, immediately repair any damage to any demising wall caused by Tenant
or Tenant’s Parties.

 

	13.	ALTERATIONS:

 

13.1
Tenant shall not commence any repairs, alterations or improvements without complying with the provisions of NRS Chapter 108, including,
but not limited to, NRS 108.2403.

 

13.2
Tenant shall not make, or allow to be made, any alterations or physical additions in, about or to the Premises, including those
set forth in the Work Letter, if any, without obtaining the prior written consent of Landlord, which consent shall not be unreasonably
withheld or delayed with respect to proposed alterations and additions which: (a) comply with all applicable laws, ordinances, rules and
regulations; (b) are in Landlord’s opinion compatible with the Building or Project and its mechanical, plumbing, electrical, heating/ventilation/air
conditioning systems; and (c) will not unreasonably interfere with the use and occupancy of any other portion of the Building or Project
by any other tenant or its invitees. Specifically, but without limiting the generality of the foregoing, Landlord shall have the right
of written consent for all plans and specifications for the proposed alterations or additions, construction means and methods, all appropriate
permits and licenses, any contractor or subcontractor to be employed on the work of alteration or additions, and the time for performance
of such work, including that work set forth in the Work Letter, if any. Tenant shall also supply to Landlord any documents and information
reasonably requested by Landlord in connection with Landlord’s consideration of a request for approval hereunder. Tenant shall reimburse
Landlord for all costs which Landlord may incur in connection with granting approval to Tenant for any such alterations and additions,
including any costs or expenses which Landlord may incur in electing to have outside architects and engineers review said plans and specifications.
Tenant shall not commence any permitted work of improvement within the Premises, without having first given Landlord prior written notice
at least ten (10) business days prior to the commencement of work to enable Landlord to record a Notice of Nonresponsibility pursuant
to applicable mechanics liens laws in the form attached hereto as Exhibit “D”, incorporated herein by reference (“Notice
of Nonresponsibility”). Such notification of the commencement of work shall not be deemed given until actually received by Landlord.

 

Tenant
acknowledges that Tenant is required to comply with the provisions of NRS Sections 108.2403 and 108.2407 prior to commencement of any
work of improvement to be constructed, altered or repaired on the Premises. Tenant’s failure to comply with NRS Sections 108.2403 and
108.2407 shall be an Event of Default under this Lease.

 

	 	/s/
	 	Tenants
    Initials

 

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All such alterations, physical additions or
improvements shall remain the property of Tenant until termination of this Lease, at which time they shall be and become the
property of Landlord if Landlord so elects; provided, however, that Landlord may, at Landlord’s option, require that Tenant, at
Tenant’s expense, remove any or all alterations, additions, improvements and partitions made by Tenant and restore the Premises by
the termination of this Lease, whether by lapse of time, or otherwise, to their condition existing prior to the construction of any
such alterations, additions, partitions or leasehold improvements. All such removals and restoration shall be accomplished in a good
and workmanlike manner so as not to cause any damage to the Premises, Building or Project whatsoever. If Tenant fails to so remove
such alterations, additions, improvements and partitions or Tenant’s trade fixtures or furniture, Landlord may keep and use them or
remove any of them and cause them to be stored or sold in accordance with applicable law, at Tenant’s sole expense.

 

	14.	SIGNS:

 

All signs,
notices and graphics of every kind or character, visible in or from public view or corridors, the common areas or the exterior of the
Premises, shall be subject to Landlord’s prior written approval which approval shall not be unreasonably withheld or delayed as long as
such signs are in compliance hereunder. Tenant shall not place or maintain any banners whatsoever or any window decor in or on any exterior
window or window fronting upon any common areas or service area or upon any truck doors or man doors without Landlord’s prior written
approval. Any installation of signs or graphics on or about the Premises, Building and Project shall be subject to any applicable governmental
laws, ordinances, regulations and to any other requirements imposed by Landlord. Tenant shall remove all such signs and graphics prior
to the termination of this Lease. Such installations and removals shall be made in such manner as to avoid injury or defacement of the
Premises, Building or Project and any other improvements contained therein, and Tenant shall repair any injury or defacement, including
without limitation, discoloration caused by such installation or removal. Any sign placed in violation of this Section shall be removable
by Landlord at Tenant’s expense. Tenant shall be responsible for any damage caused by placement or removal of such unauthorized signage.

 

	15.	INSPECTION/POSTING NOTICES:

 

Upon twenty-four
(24) hours’ notice, except in emergencies where no such notice shall be required, Landlord, and Landlord’s agents and representatives,
shall have the right to enter the Premises to inspect the same, to clean, to perform such work as may be permitted or required hereunder,
to make repairs or alterations to the Premises, Building or Project or to other tenant spaces therein, to deal with emergencies, to post
such notices as may be permitted or required by law to prevent the perfection of liens against Landlord’s interest in the Project or to
exhibit the Premises to prospective tenants, purchasers, encumbrancers or others, or for any other purpose as Landlord may deem necessary
or desirable; provided, however, that Landlord shall use reasonable efforts not to unreasonably interfere with Tenant’s business operations.
Tenant shall not be entitled to any abatement of Rent by reason of the exercise of any such right of entry. At any time within six (6)
months prior to the end of the Term, Landlord shall have the right to erect on the Premises, Building and/or Project a suitable sign indicating
that the Premises are available for lease. Tenant shall give written notice to Landlord at least thirty (30) days prior to vacating the
Premises and shall meet with Landlord for a joint inspection of the Premises at the time of vacating. In the event of Tenant’s failure
to give such notice or participate in such joint inspection, Landlord’s inspection at or after Tenant’s vacating the Premises shall conclusively
be deemed correct for purposes of determining Tenant’s responsibility for repairs and restoration.

 

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	16.	UTILITIES:

 

Tenant shall
pay directly for all water, gas, heat, air conditioning, light, power, telephone, sewer, trash, and fire sprinkler charges and other utilities
and services used on or from the Premises, together with any taxes, penalties, surcharges or the like pertaining thereto, and maintenance
charges for utilities and shall furnish all electric light bulbs, ballasts and tubes. If any such services are not separately metered
to Tenant, Tenant shall pay a reasonable proportion, as determined by Landlord, of all charges jointly serving the Premises and remainder
of the Building or Project. Landlord shall not be liable for any damages directly or indirectly resulting from nor shall the Rent or any
monies owed Landlord under this Lease herein reserved be abated by reason of: (a) the installation, use or interruption of use of any
equipment used in connection with the furnishing of any such utilities or services; (b) the failure to furnish or delay in furnishing
any such utilities or services when such failure or delay is caused by acts of God or the elements, labor disturbances of any character,
or any other accidents or other conditions beyond the reasonable control of Landlord; or (c) the limitation, curtailment, rationing or
restriction on use of water, electricity, gas or any other form of energy or any other service or utility whatsoever serving the Premises,
Building or Project. Landlord shall be entitled to cooperate voluntarily and in a reasonable manner with the efforts of national, state
or local governmental agencies or utility suppliers in reducing energy or other resource consumption. The obligation to make services
available hereunder shall be subject to the limitations of any such voluntary, reasonable program.

 

	17.	SUBORDINATION:

 

Without the necessity of
any additional document being executed by Tenant for the purpose of effecting a subordination, the Lease shall be subject and
subordinate at all times to: (a) all ground leases or underlying leases which may now exist or hereafter be executed affecting the
Premises and/or the land upon which the Premises, Building and/or Project are situated, or both; and (b) any mortgage or deed of
trust which may now exist or be placed upon said Project, land, ground leases or underlying leases, or Landlord’s interest or estate
in any of said items which is specified as security. Notwithstanding the foregoing, Landlord shall have the right to subordinate or
cause to be subordinated any such ground leases or underlying leases or any such liens to this Lease. In the event that any ground
lease or underlying lease terminates for any reason or any mortgage or deed of trust is foreclosed or a conveyance in lieu of
foreclosure is made for any reason, Tenant shall, notwithstanding any subordination, attorn to and become the Tenant of the
successor in interest to Landlord at the option of such successor in interest. Within ten (10) days after request by Landlord,
Tenant shall execute and deliver any additional documents evidencing Tenant’s attornment or the subordination of this Lease with
respect to any such ground leases or underlying leases or any such mortgage or deed of trust, in the form requested by Landlord or
by any ground landlord, mortgagee, or beneficiary under a deed of trust, subject to Tenant’s receipt of a non-disturbance agreement
provided Tenant is not in default of any provisions of the Lease.

 

	18.	FINANCIAL STATEMENTS:

 

At the
request of Landlord, Tenant shall provide to Landlord Tenant’s current financial statement or other information discussing financial worth
of Tenant, which Landlord shall use solely for purposes of this Lease and in connection with the ownership, management and disposition
of the Building or Project.

 

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	19.	ESTOPPEL CERTIFICATE:

 

Tenant
agrees that during the Term of this Lease, within ten (10) days after request of Landlord, to deliver to Landlord, or Landlord’s designee,
an estoppel certificate stating that this Lease is in full force and effect, the date to which Rent has been paid, the unexpired portion
of this Lease, and such other matters pertaining to this Lease as may be reasonably requested by Landlord. Failure by Tenant to execute
and deliver such certificate shall constitute an acceptance of the Premises and acknowledgment by Tenant that the statements included
are true and correct without exception. Landlord and Tenant intend that any statement delivered pursuant to this Section may be relied
upon by any mortgagee, beneficiary, purchaser or prospective purchaser of the Project or any interest therein. The parties agree that
Tenant’s obligation to furnish such estoppel certificates in a timely fashion is a material inducement for Landlord’s execution of the
Lease, and shall be an event of default if Tenant fails to fully comply.

 

	20.	SECURITY DEPOSIT:

 

Tenant agrees
to deposit with Landlord upon execution of this Lease, a Security Deposit as stated in the Basic Lease Information, which sum shall be
held by Landlord, without obligation for interest, as security for the performance of Tenant’s covenants and obligations under this Lease.
The Security Deposit is not an advance rental deposit or a measure of damages incurred by Landlord in case of Tenant’s default. Upon the
occurrence of any event of default by Tenant, Landlord may, from time to time, without prejudice to any other remedy provided herein or
provided by law, use such fund to the extent necessary to make good any arrears of Rent or other payments due to Landlord hereunder, and
any other damage, injury, expense or liability caused by such event of default, and Tenant shall pay to Landlord, on demand, the amount
so applied in order to restore the Security Deposit to its original amount. Although the Security Deposit shall be deemed the property
of Landlord, any remaining balance of such deposit, without interest, shall be returned by Landlord to Tenant at such time after termination
of this Lease that all of Tenant’s obligations under this Lease have been fulfilled.

 

	21.	TENANT’S REMEDIES:

 

The liability
of Landlord to Tenant for any default by Landlord under the terms of this Lease are not personal obligations of the individual or other
partners, directors, officers and shareholders of Landlord, and Tenant agrees to look solely to Landlord’s interest in the Project for
the recovery of any amount from Landlord, and shall not look to other assets of Landlord nor seek recourse against the assets of the individual
or other partners, directors, officers and shareholders of Landlord. Any lien obtained to enforce any such judgment and any levy of execution
thereon shall be subject and subordinate to any lien, mortgage or deed of trust on the Project.

 

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	22.	ASSIGNMENT AND SUBLETTING:

 

22.1 General.
Tenant shall not assign or sublet the Premises or any part thereof without Landlord’s prior written approval except
as provided herein. If Tenant desires to assign this Lease or sublet any or all of the Premises, Tenant shall give Landlord written notice
ninety (90) days prior to the anticipated effective date of the assignment or sublease. Landlord shall then have a period of thirty (30)
days following receipt of such notice to notify Tenant in writing that Landlord elects either: (1) to terminate this Lease as to the
space so affected as of the date so requested by Tenant; or (2) to permit Tenant to assign this Lease or sublet such space, subject,
however, to Landlord’s prior written approval of the proposed assignee or subtenant and of any related documents or agreements
associated with the assignment or sublease. If Landlord should fail to notify Tenant in writing of such election within said period,
Landlord shall be deemed to have waived option (1) above, but written approval by Landlord of the proposed assignee or subtenant shall
be required. If Landlord does not exercise the option provided in subitem (1) above, Landlord’s consent to a proposed assignment
or sublet shall not be unreasonably withheld. Without limiting the other instances in which it may be reasonable for Landlord to withhold
Landlord’s consent to an assignment or subletting, Landlord and Tenant acknowledge that it shall be reasonable for Landlord to
withhold Landlord’s consent in the following instances: (i) the use of the Premises by such proposed assignee or subtenant would
not comply with the Permitted Use or would increase the Parking Density of the Project; (ii) the proposed assignee or subtenant is not
of sound financial condition; (iii) the proposed assignee or subtenant is a governmental agency; (iv) the proposed assignee or subtenant
does not have a good reputation as a tenant of property; (v) the proposed assignee or subtenant is a person with whom Landlord is negotiating
to lease space in the Building or Project; (vi) the assignment or subletting would entail any alterations which would lessen the value
of the leasehold improvements in the Premises; (vii) the proposed assignee or subtenant would engage in a use that would violate another
lease within the Building or Project; (viii) the proposed assignee or subtenant would engage in a use not within Landlord’s desired
use and mix of the Building or Project; or (ix) if Tenant is in default of any obligation of Tenant under this Lease, or Tenant has defaulted
under this Lease on three (3) or more occasions during any twelve (12) months preceding the date that Tenant requests such consent. Failure
by Landlord to approve a proposed assignee or subtenant shall not cause a termination of this Lease. Upon a termination under this Section,
Landlord may lease the Premises to any party, including parties with whom Tenant has negotiated an assignment or sublease, without incurring
any liability to Tenant.

 

22.2
Bonus Rent. Any Rent or other consideration realized by Tenant under any such sublease
or assignment in excess of the Rent payable hereunder, after amortization of a reasonable brokerage commission, shall be divided and paid,
forty percent (40%) to Tenant, sixty percent (60%) to Landlord. In any subletting or assignment undertaken by Tenant, Tenant shall diligently
seek to obtain the maximum rental amount available in the marketplace for such subletting or assignment.

 

22.3
Corporation. If Tenant is a corporation, a transfer of corporate shares by sale, assignment,
bequest, inheritance, operation of law or other disposition (including such a transfer to or by a receiver or trustee in federal or state
bankruptcy, insolvency or other proceedings), so as to result in a change in the present control of such corporation or any of its parent
corporations by the person or persons owning a majority of said corporate shares, shall constitute an assignment for purposes of this
Lease requiring prior written approval of Landlord pursuant to Section 22.1.

 

22.4
Partnership. If Tenant is a partnership, joint venture or other incorporated business
form, a transfer of the interest of persons, firms or entities responsible for managerial control of Tenant by sale, assignment, bequest,
inheritance, operation of law or other disposition, so as to result in a change in the present control of said entity and/or a change
in the identity of the persons responsible for the general credit obligations of said entity shall constitute an assignment for purposes
of this Lease requiring prior written approval of Landlord pursuant to Section 22.1.

 

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22.5
Liability. No assignment or subletting by Tenant shall relieve Tenant of any obligation
under this Lease. Any assignment or subletting which conflicts with the provisions hereof or any other lease in the Building or Project
shall be void. Tenant will indemnify Landlord for any assignee action.

 

22.6
No Waiver. Any grant by Landlord of permissive assignment or sublease shall not act
as a waiver of any of Landlord’s rights under the provisions of this Lease, including, without limitation, Landlord’s rights in regard
to subsequent assignment or sublease by Tenant.

 

	23.	AUTHORITY OF PARTIES:

 

Landlord
represents and warrants that it has full right and authority to enter into this Lease and to perform all of Landlord’s obligations hereunder.
Tenant represents and warrants that it has full right and authority to enter into this Lease and to perform all of Tenant’s obligations
hereunder.

 

	24.	CONDEMNATION:

 

24.1
Condemnation Resulting in Termination. If the whole or any substantial part of the
Project of which the Premises are a part should be taken or condemned for any public use under governmental law, ordinance or regulation,
or by right of eminent domain, or by private purchase in lieu thereof, and the taking would prevent or materially interfere with the Permitted
Use of the Premises this Lease shall terminate and the Rent shall be abated during the unexpired portion of this Lease, effective when
the physical taking of said Premises shall have occurred.

 

24.2
Condemnation Not Resulting in Termination. If a portion of the Project of which the
Premises are a part should be taken or condemned for any public use under any governmental law, ordinance, or regulation, or by right
of eminent domain, or by private purchase in lieu thereof, and this Lease is not terminated as provided in this Section, this Lease shall
not terminate, but the Rent payable hereunder during the unexpired portion of the Lease shall be reduced, beginning on the date when the
physical taking shall have occurred, to such amount as may be fair and reasonable under all of the circumstances.

 

24.3
Award. Landlord shall be entitled to any and all payment, income, rent, award, or any
interest therein whatsoever which may be paid or made in connection with such taking or conveyance and Tenant shall have no claim against
Landlord or otherwise for the value of any unexpired portion of this Lease. Notwithstanding the foregoing, any compensation specifically
awarded Tenant for loss of business, Tenant’s personal property, moving costs or loss of goodwill, shall be and remain the property of
Tenant.

 

	25.	CASUALTY DAMAGE:

 

25.1 General. If the Premises or Building should be damaged or destroyed by fire or other
casualty, Tenant shall give immediate written notice thereof to Landlord. Within thirty (30) days after Landlord’s receipt of such notice,
Landlord shall notify Tenant whether in Landlord’s opinion such repairs can reasonably be made either: (1) within ninety (90) days; (2)
in more than ninety (90) days but in less than one hundred eighty (180) days; or (3) in more than one hundred eighty (180) days from the
date of such notice. Landlord’s determination shall be binding on Tenant.

 

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25.2 Less Than 90 Days. If the Premises or Building should be damaged by fire or other casualty
but only to such extent that rebuilding or repairs can in Landlord’s estimation be reasonably completed within ninety (90) days after
the date of such damage, this Lease shall not terminate and provided that insurance proceeds are available to fully repair the damage,
Landlord shall proceed to rebuild and repair the Premises in the manner determined by Landlord, except that Landlord shall not be required
to rebuild, repair or replace any part of the partitions, fixtures, additions and other leasehold improvements which may have been placed
in, on or about the Premises. If the Premises are untenantable in whole or in part following such damage, the Rent payable hereunder during
the period in which they are untenantable shall be abated proportionately, but only to the extent of rental abatement insurance proceeds
received by Landlord during the time and to the extent the Premises are unfit for occupancy.

 

25.3 Greater Than 90 Days. If the Premises or Building should be damaged by fire or other
casualty but only to such extent that rebuilding or repairs can in Landlord’s estimation be reasonably completed in more than ninety (90)
days but in less than one hundred eighty 180 days, then Landlord shall have the option of either: (1) terminating the Lease effective
upon the date of the occurrence of such damage, in which event the Rent shall be abated during the unexpired portion of the Lease; or
(2) electing to rebuild or repair the Premises to substantially the condition in which they existed prior to such damage, provided that
insurance proceeds are available, to fully repair the damage, except that Landlord shall not be required to rebuild, repair or replace
any part of the partitions, fixtures, additions and other improvements which may have been placed in, on or about the Premises. If the
Premises are untenantable in whole or in part following such damage, the Rent payable hereunder during the period in which they are untenantable
shall be abated proportionately, but only to the extent of rental abatement insurance proceeds received by Landlord during the time and
to the extent the Premises are unfit for occupancy. In the event that Landlord should fail to complete such repairs and rebuilding within
one hundred eighty days (180) days after the date upon which Landlord is notified by Tenant of such damage, such period of time to be
extended for delays caused by the fault or neglect of Tenant or because of acts of God, acts of public agencies, labor disputes, strikes,
fires, freight embargoes, rainy or stormy weather, inability to obtain materials, supplies or fuels, or delays of the contractors or subcontractors
or any other causes or contingencies beyond the reasonable control of Landlord, Tenant may at Tenant’s option within ten (10) days after
the expiration of such one hundred eighty (180) day period (as such may be extended), terminate this Lease by delivering written notice
of termination to Landlord as Tenant’s exclusive remedy, whereupon all rights hereunder shall cease and terminate thirty (30) days after
Landlord’s receipt of such termination notice.

 

25.4 Greater Than 180 Days. If the Premises or Building should be so damaged by fire or
other casualty that rebuilding or repairs cannot in Landlord’s estimation be completed within one hundred eighty (180) days after such
damage, this Lease shall terminate and the Rent shall be abated during the unexpired portion of this Lease, effective upon the date of
the occurrence of such damage.

 

25.5 Tenant’s
Fault. If the Premises or any other portion of the Building are damaged by fire or other casualty resulting from the fault,
negligence, or breach of this Lease by Tenant or any of Tenant’s Parties, Base Rent and Additional Rent shall not be diminished
during the repair of such damage and Tenant shall be liable to Landlord for the cost and expense of the repair and restoration of the
Building caused thereby to the extent such cost and expense is not covered by insurance proceeds.

 

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25.6 Uninsured
Casualty. Notwithstanding anything herein to the contrary, in the event that the Premises or Building are damaged or destroyed and
are not fully covered by the insurance proceeds received by Landlord or in the event that the holder of any indebtedness secured by a
mortgage or deed of trust covering the Premises requires that the insurance proceeds be applied to such indebtedness, then in either
case Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant within thirty (30) days
after the date of notice to Landlord that said damage or destruction is not fully covered by insurance or such requirement is made by
any such holder, as the case may be, whereupon all rights and obligations hereunder shall cease and terminate.

 

	26.	HOLDING OVER:

 

If Tenant
shall retain possession of the Premises or any portion thereof without Landlord’s consent following the expiration of this Lease or sooner
termination for any reason, then Tenant shall pay to Landlord for each day of such retention 150% of the amount of the daily rental as
of the last month prior to the date of expiration or termination. Tenant shall also indemnify, defend, protect and hold Landlord harmless
from any loss, liability or cost, including reasonable attorneys’ fees, resulting from delay by Tenant in surrendering the Premises, including,
without limitation, any claims made by any succeeding tenant founded on such delay. Acceptance of Rent by Landlord following expiration
or termination shall not constitute a renewal of this Lease, and nothing contained in this Section shall waive Landlord’s right of reentry
or any other right. Unless Landlord consents in writing to Tenant’s holding over, Tenant shall be only a Tenant at sufferance, whether
or not Landlord accepts any Rent from Tenant while Tenant is holding over without Landlord’s written consent. Additionally, in the event
that upon termination of the Lease, Tenant has not fulfilled its obligation with respect to repairs and cleanup of the Premises or any
other Tenant obligations as set forth in this Lease, then Landlord shall have the right to perform any such obligations as ii deems necessary
at Tenant’s sole cost and expense, and any time required by Landlord to complete such obligations shall be considered a period of holding
over and the terms of this Section shall apply.

 

	27.	DEFAULT:

 

27.1 Events of Default. The occurrence of any of the following shall constitute an event of default on the part of Tenant:

 

27.1.1
Abandonment. Abandonment of the Premises for a continuous period in excess of fifteen (15) days.

 

27.1.2
Nonpayment of Rent. Failure to pay any installment of Rent or any other amount due and payable hereunder upon the date when
said payment is due, if the failure continues for five (5) days after written notice to Tenant.

 

27.1.3
Other Obligations. Failure to perform any obligation, agreement or covenant under this Lease other than those matters specified
in subparagraphs (1) and (2) of this Section, such failure continuing for fifteen (15) days after written notice of such failure.

 

27.1.4 General Assignment. A general
assignment by Tenant for the benefit of creditors.

 

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27.1.5
Bankruptcy. The filing of any voluntary petition in bankruptcy by Tenant, or the filing
of an involuntary petition by Tenant’s creditors, which involuntary petition remains undischarged for a period of thirty (30) days. In
the event that under applicable law the trustee in bankruptcy or Tenant has the right to affirm this Lease and continue to perform the
obligations of Tenant hereunder, such trustee or Tenant shall, in such time period as may be permitted by the bankruptcy court having
jurisdiction, cure all defaults of Tenant hereunder outstanding as of the date of the affirmance of this Lease and provide to Landlord
such adequate assurances as may be necessary to ensure Landlord of the continued performance of Tenant’s obligations under this Lease.

 

27.1.6 
Receivership. The employment of a receiver to take possession of substantially all
of Tenant’s assets or the Premises, if such appointment remains undismissed or undischarged for a period of ten (10) days after the order
therefor.

 

27.1.7
Attachment. The attachment, execution or other judicial seizure of all or substantially
all of Tenant’s assets or the Premises, if such attachment or other seizure remains undismissed or undischarged for a period of ten (10)
days after the levy thereof.

 

27.2  Remedies Upon Default.

 

27.2.1
Termination. In the event of the occurrence of any event of default, Landlord shall
have the right to give a written termination notice to Tenant, and on the date specified in such notice, Tenant’s right to possession
shall terminate, and this Lease shall terminate unless on or before such date all arrears of rental and all other sums payable by Tenant
under this Lease and all costs and expenses incurred by or on behalf of Landlord hereunder shall have been paid by Tenant and all other
events of default of this Lease by Tenant at the time existing shall have been fully remedied to the satisfaction of Landlord. At any
time after such termination, Landlord may recover possession of the Premises or any part thereof and expel and remove therefrom Tenant
and any other person occupying the same, by any lawful means, and again repossess and enjoy the Premises without prejudice to any of the
remedies that Landlord may have under this Lease, or at law or equity by reason of Tenant’s default or of such termination.

 

27.2.2
Continuation After Default. Even though an event of default may have occurred, this
Lease shall continue in effect for so long as Landlord does not terminate Tenant’s right to possession herein, and Landlord may enforce
all of Landlord’s rights and remedies under this Lease, including without limitation, the right to recover Rent as it becomes due, and
Landlord, without terminating this Lease, may exercise all of the rights and remedies of a landlord. Acts of maintenance, preservation
or efforts to lease the Premises or the appointment of a receiver upon application of Landlord to protect Landlord’s interest under this
Lease shall not constitute an election to terminate Tenant’s right to possession.

 

27.2.3 Damages
After Default. Should Landlord terminate this Lease pursuant to the provisions herein, Landlord shall have the rights and
remedies of a Landlord. Upon such termination, in addition to any other rights and remedies to which Landlord may be entitled under
applicable law, Landlord shall be entitled to recover from Tenant: (1) the worth at the time of award of the unpaid Rent and other
amounts which had been earned at the time of termination, (2) the worth at the time of award of the amount by which the unpaid Rent
which would have been earned after termination until the time of award exceeds the amount of such Rent loss that Tenant proves could
have been reasonably avoided; (3) the worth at the time of award of the amount by which the unpaid Rent for the balance of the Term
after the time of award exceeds the amount of such Rent loss that the Tenant proves could be reasonably avoided; and (4) any other
amount necessary to compensate Landlord for all the detriment proximately caused by Tenant’s failure to perform Tenant’s obligations
under this Lease or which, in the ordinary course of things, would be likely to result therefrom. The “worth at the time of
award” of the amounts referred to in (1) and (2), above shall be computed at the lesser of the “prime rate,” as
announced from time to time by Wells Fargo Bank, N.A. (San Francisco), plus five (5) percentage points, or the maximum interest rate
allowed by law (“Applicable Interest Rate”). The “worth at the time of award” of the amount referred to in (3)
above shall be computed by discounting such amount at the Federal Discount Rate of the Federal Reserve Bank of San Francisco at the
time of the award. If this Lease provides for any periods during the Term during which Tenant is not required to pay Base Rent or if
Tenant otherwise receives a Rent concession, then upon the occurrence of an event of default, Tenant shall owe to Landlord the full
amount of such Base Rent or value of such Rent concession, plus interest at the Applicable Interest Rate, calculated from the date
that such Base Rent or Rent concession would have been payable.

 

    18

     

    

 

27.2.4
Late Charge. If any installment of Rent is not paid within ten (10) days of the date
it is due, such amount shall bear interest at the Applicable Interest Rate from the date on which said payment shall be due until the
date on which Landlord shall receive said payment. In addition, Tenant shall pay Landlord a late charge equal to five percent (5%) of
the delinquency, to compensate Landlord for the loss of the use of the amount not paid and the administrative costs caused by the delinquency,
the parties agreeing that Landlord’s damage by virtue of such delinquencies would be difficult to compute and the amount stated herein
represents a reasonable estimate thereof. This provision shall not relieve Tenant of Tenant’s obligation to pay Rent at the time and in
the manner herein specified.

 

27.2.5
Remedies Cumulative. All rights, privileges and elections or remedies of the parties
are cumulative and not alternative, to the extent permitted by law and except as otherwise provided herein.

 

	28.	LIENS:

 

Tenant shall
keep the Premises free from all liens, including, without limitation, those arising out of or related to work performed, materials or
supplies furnished or obligations incurred by Tenant or in connection with work made, suffered or done by or on behalf of Tenant in or
on the Premises, Building or Project. In the event that Tenant shall not, within ten (10) days following the imposition of any such lien,
cause the same to be released of record by payment or posting of a proper bond, Landlord shall have, in addition to all other remedies
provided herein and by law, the right, but not the obligation, to cause the same to be released by such means as Landlord shall deem proper,
including payment of the claim giving rise to such lien. All sums paid by Landlord on behalf of Tenant and all expenses incurred by Landlord
in connection therefor shall be payable to Landlord by Tenant on demand with interest at the Applicable Interest Rate. Landlord shall
have the right at all times to post and keep posted on the Premises any notices permitted or required by law, or which Landlord shall
deem proper, for the protection of Landlord, the Premises, the Building, the Project and any other party having an interest therein, from
mechanics’ and materialmen’s liens, and Tenant shall give Landlord not less than ten (10) business days prior written notice of the commencement
of any work in the Premises, Building or Project which could lawfully give rise to a claim for mechanics’ or materialmen’s liens.

 

    19

     

    

 

	29.	TRANSFERS BY LANDLORD:

 

In the event of a sale
or conveyance by Landlord of the Project or any portion thereof, or a foreclosure by any creditor of Landlord, the same shall
operate to release Landlord from any liability upon any of the covenants or conditions, express or implied, herein contained in
favor of Tenant, to the extent required to be performed after the passing of title to Landlord’s successor-in-interest. In
such event, Tenant agrees to look solely to the responsibility of the successor-in-interest of Landlord under this Lease with
respect to the performance of the covenants and duties of “Landlord” to be performed after the passing of title to
Landlord’s successor-in-interest. This Lease shall not be affected by any such sale and Tenant agrees to attorn to the
purchaser or assignee, subject to Tenant’s receipt of a non-disturbance agreement provided Tenant is not in default of any
provisions of the Lease. Landlord’s successor(s)-in- interest shall not have liability to Tenant with respect to the failure
to perform all of the obligations of “Landlord”, to the extent required to be performed prior to the date such
successor(s)-in-interest became the owner of the Building.

 

	30.	RIGHT OF LANDLORD TO PERFORM TENANT’S COVENANTS:

 

All covenants
and agreements to be performed by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant’s sole cost and expense
and without any abatement of Rent. If Tenant shall fail to pay any sum of money, other than Base Rent and Basic Operating Cost, required
to be paid by Tenant hereunder or shall fail to perform any other act on Tenant’s part to be performed hereunder, and such failure shall
continue for five (5) days after notice thereof by Landlord, Landlord may, but shall not be obligated to do so, and without waiving or
releasing Tenant from any obligations of Tenant, make any such payment or perform any such act on Tenant’s part to be made or performed.
All sums, so paid by Landlord and all necessary incidental costs together with interest thereon at the Applicable Interest Rate from the
date of such payment by Landlord shall be payable to Landlord on demand, and Tenant covenants to pay such sums, and Landlord shall have,
in addition to any other right or remedy of Landlord, the same right and remedies in the event of the non-payment thereof by Tenant as
in the case of default by Tenant in the payment of Base Rent and Basic Operating Cost.

 

	31.	WAIVER:

 

If either
Landlord or Tenant waives the performance of any term, covenant or condition contained in this Lease, such waiver shall not be deemed
to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein. The acceptance of Rent
by Landlord shall not constitute a waiver of any preceding breach by Tenant of any term, covenant or condition of this Lease, regardless
of Landlord’s knowledge of such preceding breach at the time Landlord accepted such Rent. Failure by Landlord to enforce any of the terms,
covenants or conditions of this Lease for any length of time shall not be deemed to waive or to decrease the right of Landlord to insist
thereafter upon strict performance by Tenant. Waiver by Landlord of any term, covenant or condition contained in this Lease may only be
made by a written document signed by Landlord.

 

    20

     

    

 

	32.	NOTICES:

 

Each prov1s1on of this
Lease or of any applicable governmental laws, ordinances, regulations and other requirements with reference to sending, mailing or
delivery of any notice or the making of any payment by Landlord or Tenant to the other shall be deemed to be complied with when and
if the following steps are taken:

 

32.1
Rent. All Rent and other payments required to be made by Tenant to Landlord hereunder
shall be payable to Landlord at the address set forth in the Basic Lease Information, or at such other address as Landlord may specify
from time to time by written notice delivered in accordance herewith. Tenant’s obligation to pay Rent and any other amounts to Landlord
under the terms of this Lease shall not be deemed satisfied until such Rent and other amounts have been actually received by Landlord.

 

32.2
Other. All notices, demands, consents and approvals which may or are required to be
given by either party to the other hereunder shall be in writing and either personally delivered, sent by commercial overnight courier,
or mailed, certified or registered, postage prepaid, and addressed to the party to be notified at the address for such party as specified
in the Basic Lease Information or to such other place as the party to be notified may from time to time designate by at least fifteen
(15) days notice to the notifying party. Notices shall be deemed served upon receipt or refusal to accept delivery. Tenant appoints as
its agent to receive the service of all default notices and notice of commencement of unlawful detainer proceedings the person in charge
of or apparently in charge of occupying the Premises at the time, and, if there is no such person, then such service may be made by attaching
the same on the main entrance of the Premises.

 

	33.	ATTORNEYS’ FEES:

 

In the event
that Landlord places the enforcement of this Lease, or any part thereof, or the collection of any Rent due, or to become due hereunder,
or recovery of possession of the Premises in the hands of an attorney, Tenant shall pay to Landlord, upon demand, Landlord’s reasonable
attorneys’ fees and court costs. In any action which Landlord or Tenant brings to enforce its respective rights hereunder, the unsuccessful
party shall pay all costs incurred by the prevailing party including reasonable attorneys’ fees, to be fixed by the court, and said costs
and attorneys’ fees shall be a part of the judgment in said action.

 

	34.	SUCCESSORS AND ASSIGNS:

 

This Lease
shall be binding upon and inure to the benefit of Landlord, its successors and assigns, and shall be binding upon and inure to the benefit
of Tenant, its successors and assigns.

 

	35.	FORCE MAJEURE:

 

Whenever a
period of time is herein prescribed for action to be taken by Landlord, Landlord shall not be liable or responsible for, and there shall
be excluded from the computation for any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials,
war, governmental laws, regulations or restrictions or any other causes of any kind whatsoever which are beyond the control of Landlord.

 

	36.	INTENTIONALLY LEFT BLANK

 

Upon the Effective Date
of this Lease, Landlord shall pay to the Broker(s) named in the Basic Lease Information, if any, one half (1/2) of the sum of the
Commission(s) set forth in the Basic Lease Information for services rendered by the Broker(s) in this transaction. Upon the Rent
Commencement Date, Landlord shall pay to the Broker(s) the remaining one half (1/2) of the total Commission(s) due. No commissions
will be paid for extensions, renewals, options or expansions of an existing Tenant. Landlord and Tenant each warrant that they have
dealt with no other real estate broker(s) in connection with this Lease except those Broker(s) specifically named in the Basic Lease
Information.

 

    21

     

    

 

	37.	DISPUTE RESOLUTION:

 

37.1
Mediation and Arbitration. In the event of any dispute or claim arising under, out
of, or in connection with or in relation to this Lease as to the validity, construction, enforceability or performance of this Lease which
cannot be resolved by the mutual agreement of the parties, and mindful of the high cost of litigation, not only in dollars but time and
energy as well, the parties intend to and do hereby establish a quick, final and binding out-of-court dispute resolution procedure to
be followed in the unlikely event any controversy should arise out of or concerning the performance of this Lease. Accordingly, the parties
do hereby covenant and agree as follows:

 

37.1.1
Mediation. Landlord and Tenant shall attempt in good faith first to mediate disputes arising under this Lease and use their
best efforts to reach agreement on the matters in dispute. Within seven (7) calendar days of the written request of either party, the
parties shall attempt to employ the services of a third person mutually acceptable to the parties to conduct such mediation within five
(5) days of his or her appointment. If the parties are unable to agree on such third person, or, if on completion of such mediation, the
parties are unable to agree and settle the dispute, then the dispute shall be referred to arbitration in accordance with subsections (b)
through (e) below.

 

37.1.2
Arbitration. Arbitration shall be administered by the American Arbitration Association under its Commercial Arbitration
Rules. Notice of the demand for arbitration shall be filed in writing with the other party to this Lease and with the American Arbitration
Association, and the notice of the demand shall be made within a reasonable time after the dispute has arisen. The award rendered by the
arbitrator(s) shall be final, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

 

37.1.3
Appointment of Arbitrators. The arbitration shall be conducted by one (1) arbitrator. The arbitrator shall be chosen
by mutual agreement of Landlord and Tenant. If Landlord and Tenant cannot agree on an arbitrator within thirty (30) days after the demand
for arbitration is filed with the AAA, the arbitrator shall be chosen by the AAA pursuant to its Commercial Arbitration Rules. Every arbitrator
chosen must be: (i) a practicing attorney or a retired member of the state or federal judiciary; (ii)
a member of the National Roster of Commercial Arbitrators maintained by the AAA; and (iii) must have a minimum of ten (10) years’ experience
in practicing law in Nevada.

 

37.1.4
Location and Award. The arbitration shall be conducted in Washoe County, Nevada at a location to be determined by the arbitrator.
The arbitrator shall determine which party is the prevailing party and shall include in the award that party’s reasonable attorney’s fees
and costs.

 

37.1.5 Discovery.
In any arbitration proceeding, discovery will be permitted in accordance with the Nevada Rules of Civil Procedure, except as
otherwise limited as set forth herein. All discovery shall be expressly limited to matters directly relevant to the controversy or
claim arising out of or relating to this Lease that is being arbitrated, and discovery must be completed no later than twenty (20)
days before the arbitration hearing date unless the Landlord and Tenant mutually agree otherwise in writing. Any discovery dispute
that arises between the parties shall be decided by the arbitrator.

 

    22

     

    

 

37.2 No Limitation. Notwithstanding the above, any party to this Lease shall have the right
to apply for and obtain a temporary restraining order or other temporary or permanent injunctive or equitable relief from a court of competent
jurisdiction to enforce the provisions hereof or to otherwise protect its rights hereunder. In the event of Tenant’s default under this
Lease, the foregoing arbitration provisions do not in any way limit the right of Landlord to reenter the Premises, re-let the Premises
or to terminate the Lease as set forth more fully herein.

 

	38.	SURRENDER OF PREMISES:

 

On the
Expiration Date, or upon any earlier termination of this Lease pursuant to the terms hereof, or upon any reentry by Landlord upon the
Premises pursuant to the provisions hereof, Tenant shall surrender to Landlord the Premises in good order, condition and repairs, reasonable
wear and tear excepted, together with all alterations, decorations, additions and improvements that may have been made in, to or on the
Premises, except as otherwise stated in this Lease, along with Tenant’s personal property, free and clear of all liens and encumbrances,
other than those, if any, permitted hereby or otherwise created or consented to by Landlord, and, if requested to do so, shall execute,
acknowledge and deliver to Landlord such instruments of further assurance as in the reasonable opinion of Landlord are necessary or desirable
to confirm or perfect Landlord’s right, title and interest in and to the Premises. On or before the end of the Lease term, Tenant shall
remove all of Tenant’s personal property and removable improvements and fixtures from the Premises, and all such personal property not
removed by the close of business on the last day of the Lease term shall be deemed abandoned by Tenant and may be disposed of by Landlord
without any liability to Tenant, unless express arrangements have been made by the Landlord and Tenant for storage of same.

 

	39.	QUIET ENJOYMENT:

 

Landlord
covenants and agrees that Tenant, upon paying the rent and all other charges herein provided for and observing and keeping all covenants,
agreements, and conditions of this Lease on its part to be observed and kept, shall quietly have and enjoy the Premises during the term
of this Lease without hindrance or molestation by anyone claiming by or through Landlord, subject, however, to the exceptions, reservations
and conditions of this Lease.

 

	40.	MISCELLANEOUS:

 

40.1
General. The term “Tenant” or any pronoun used in place thereof shall indicate
and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their respective successors,
executors, administrators and permitted assigns, according to the context hereof.

 

 40.2 Time. Time is of the essence regarding this Lease and all of its provisions.

 

40.3  Choice
of Law. This Lease shall in all respects be governed by the laws of the State of Nevada.

 

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40.4 Entire
Agreement. This Lease, together with its Basic Lease Information and Exhibits, contains all the agreements of the parties
hereto and supersedes any previous negotiations. There have been no representations made by the Landlord or understandings made between
the parties other than those set forth in this Lease and its exhibits.

 

40.5 Modification. This Lease may not be modified except by a written instrument executed
by the parties hereto.

 

40.6 Severability. If, for any reason whatsoever, any of the provisions hereof shall be
unenforceable or ineffective, all of the other provisions shall be and remain in full force and effect.

 

40.7 Recordation.
Tenant shall not record this Lease or a short form memorandum hereof.

 

40.8 Examination
of Lease. Submission of this Lease to Tenant does not constitute an option or offer to lease and this Lease is not
effective until execution and delivery by both Landlord and Tenant.

 

40.9 Accord and Satisfaction. No payment by Tenant of a lesser amount than the Rent nor
any endorsement on any check or letter accompanying any check or payment of Rent shall be deemed an accord and satisfaction of full payment
of Rent, and Landlord may accept such payment without prejudice to Landlord’s right to recover the balance of such Rent or to pursue other
remedies.

 

40.10 Easements. Landlord may grant easements on the Project and dedicate for public use
portions of the Project without Tenant’s consent; provided that no such grant or dedication shall substantially interfere with Tenant’s
use of the Premises. Upon Landlord’s demand, Tenant shall execute, acknowledge and deliver to Landlord documents, instruments, maps and
plats necessary to effectuate Tenant’s covenants hereunder.

 

40.11 Drafting
and Determination Presumption. The parties acknowledge that this Lease has been agreed to by both the parties, that both Landlord
and Tenant have consulted with attorneys with respect to the terms of this Lease and that no presumption shall be created against Landlord
because Landlord drafted this Lease. Except as otherwise specifically set forth in this Lease, with respect to any consent, determination
or estimation of Landlord required in this Lease or requested of Landlord, Landlord’s consent, determination or estimation shall
be made in Landlord’s good faith opinion, whether objectively reasonable or unreasonable.

 

40.12 Exhibits.
The following Exhibits, referenced herein, are attached hereto and are incorporated herein by this reference:

 

Exhibit “A” - Site Plan

Exhibit
“B” - Work Letter

Exhibit “C” - Option to Extend

Exhibit “D” - Notice of Nonresponsibility

 

40.13 No Light, Air or View Easement. Any diminution or shutting off of light, air or view
by any structure which may be erected on lands adjacent to or in the vicinity of the Building shall in no way affect this Lease or impose
any liability on Landlord.

 

40.14 No Third Party Benefit. This Lease is a contract between Landlord and Tenant and nothing herein is intended to create any
third party benefit.

 

40.15 Parking. Tenant shall not park nor allow any customers or visitors to park in the parking area to the West or North of the
building. Tenant shall be allowed parking to the front (South) of the building and any marked spaces immediately adjacent to the West.

 

    24

     

    

 

IN WITNESS WHEREOF, the parties
hereto have executed this Leasethe day and year first above written.

 

	“Landlord”	 	By: 	/s/ Steve Parkey
	Sage Partnership, a Nevada General	 	 
	Partnership, dba McKenzie Properties	 	Name:  	Steve Parkey
	 	 	 
	By: 	/s/ Dale McKenzie	 	Title: 	President
	 	 	 
	Name:  	Dale McKenzie	 	Date: 	12/20/17
	 	 	 
	Title:	 General Partner	 	 
	 	 	 
	Date:	 1/2/18	 	 
	 	 	 
	“Tenant”	 	 
	High Mountain Door and Trim, Inc.	 	 

 

    25

     

    

 

EXHIBIT “A”

TO LEASE

 

    A-1

     

    

 

EXHIBIT “B”

TO LEASE

 

Work Letter

 

NOT APPLICABLE

 

    B-1

     

    

 

EXHIBIT “C”

TO LEASE

 

Option to Extend

[X] Landlord and Tenant hereby acknowledge
and agree that Tenant shall have no option to extend the Term of this Lease.

 

OR

 

☒ Landlord and Tenant hereby acknowledge
and agree that Tenant shall have the option to extend the Term of this Lease as follows:

 

Tenant shall have the right, at its
option, to extend the Term for one (1) additional period of three years (“Extension Period”). Notwithstanding the above, Tenant’s
right to extend is subject to the following conditions precedent:(i) the Lease shall be in full force and effect at the time Tenant
exercises its option to extend; (ii) no uncured Event of Default shall exist at the time notice is given or during the period from exercise
of the extension through and including the last day of the then current Term (unless Tenant is diligently prosecuting the cure of such
Event of Default); and (iii) Tenant shall exercise its option to extend the Term by giving Landlord
written notice thereof not less than six (6) months prior to the expiration of the original Term. Tenant’s exercise of the extension option
as herein provided shall operate as an extension of the Term hereof, so that this Lease and each and every covenant and provision thereof
shall be and remain in full force and effect during the Term as extended and with the same force and effect as if the Term of this Lease
were originally for such extended period. Base Rent during the Extension Period shall continue to be determined and payable as provided
in Section 7 of this Lease.

 

    C-1

     

    

 

EXHIBIT “D”

TO
LEASE

 

Notice of Nonresponsibility

 

(See attached.)

 

    D-1

     

    

 

EXHIBIT “E”

RULES AND REGULATIONS

 

I. 
The sidewalk, entries and driveways of the Project shall not be obstructed by Tenant or its agents or used by them for any purpose other
than ingress and egress to and from the Premises.

 

 2. Tenant shall not place any objects, including antennas, satellites, outdoor furniture, etc., in the parking areas, landscaped areas or other areas outside of its Premises or on the roof of the Project, without Landlord’s explicit consent. No A-frame signs allowed on the Project, the landscaping or the sidewalks.

 

 3. Except for service animals, no animals, including birds or reptiles, shall be allowed in the offices, halls, corridors or common areas in the Project. Feeding of pigeons is strictly prohibited.

 

 4. Tenant shall not disturb the occupants of the Project or adjoining buildings by the use of any radio or musical instrument or by the making of loud or improper noises including revving and testing of engines, vehicles and car stereo systems.

 

5. 
Tenant must comply at all times with the Nevada Clean Indoor Air Act. Smoking of any kind, including electric and vapor products is prohibited
in the Premises.

 

6.  If
Tenant desires data or telephone lines or other electric connections or installations in the Premises, Landlord or its agent will direct
the electrician as to where and how the wires may be introduced and, without such direction, no boring or cutting of wires will be permitted.
Any such installation or connection shall be made at Tenant’s expense, with prior written authorization from Landlord.

 

7. 
Tenant shall not install or operate any steam or gas engine or boiler or carry on any mechanical business in the Premises except as specifically
approved in the Lease. The use of oil, gas or flammable liquids for heating, lighting or any other purpose is expressly prohibited. Explosives
or other articles deemed extra hazardous shall not be brought into the Project. Tenant cannot under any circumstances spray paint objects
inside of or outside of leased Premises, unless using a certified paint booth.

 

8. Parking any type
of recreational vehicles is specifically prohibited on or about the Project. No vehicle of any type shall be stored in the parking
areas at any time. In the event a vehicle is disabled, improperly or illegally parked, or the vehicle is without a current license
plate and tag, it shall be towed within 24 hours at the Tenant’s expense. There shall be no “For Sale” or other
advertising signs on or about any parked vehicle. All vehicles shall be parked in designated parking areas in conformity with all
signs and other markings and cannot take more than one designated parking space. All parking will be open parking; numbering or
lettering of individual spaces will not be permitted except as specified by Landlord. The parking lot cannot be used for the testing
of vehicles, motorcycles, choppers, ATVs, motor scooters and pocket bikes, etc.

 

 9. Landlord reserves the right to designate areas for employee parking.

 

10. Tenant
shall maintain the Premises free from rodents, insects and other pests. Interior extermination/spraying are the Tenant’s responsibility.

 

II.
Landlord reserves the right to exclude or expel from the Project any person who, in Landlord’s judgment, is intoxicated or
under the influence of liquor or drugs or who shall in any manner do any act in violation of the Rules and Regulations of the Project.

 

    E-1

     

    

 

12.  a.
Tenant agrees that all Tenants’ trash and rubbish shall be deposited in receptacles and that Tenant shall not cause or permit any trash
receptacles to remain outside of trash enclosures or designated trash receptacle areas. Tenant cannot use the trash of other Tenants within
the Project for the disposal of any manufacturing materials and by-products, landscaping refuse, glass panes, etc., or for excessive amounts
of any type of refuse. All movable trash receptacles provided by the trash disposal firm for the Premises must be kept in the trash enclosure
areas, if any, provided for that purpose. Landlord reserves the right to designate trash receptacle locations within the project.

 

b. Tenant shall not cause any
unnecessary labor by reason of Tenant’s carelessness or indifference in the preservation of good order and cleanliness. Landlord shall
not be responsible to Tenant for any loss of property on the Premises, however occurring, or for any damage done to the effects of Tenant
by the trash removal company or any other tenant or person.

 

13. 
Tenant shall give Landlord prompt notice of any defects in the water, lawn sprinkler, sewage, gas pipes, exterior electrical lights and
fixtures, heating apparatus or any other service equipment affecting the Premises. Any damages caused by lack of notice by Tenant to Landlord
will be the responsibility of the Tenant.

 

14. 
Tenant shall not permit storage outside the Premises including, without limitation, outside storage of pallets, trucks, trailers and other
vehicles or dumping of waste or refuse or permit any harmful materials to be placed in any drainage or sanitary system or trash receptacle
in or about the Premises.

 

 15. No auction, public or private, will be permitted on the Premises or the Project. No sidewalk sales allowed.

 

 16. No awnings shall be placed over the windows in the Premises except with the prior written consent of Landlord.

 

 17. The Premises shall not be used for lodging, sleeping or cooking or for any immoral or illegal purposes or for any purpose other than that specified in the Lease.

 

18. 
Tenant shall ascertain from Landlord the maximum amount of electrical current that can safely be used in the Premises, taking into account
the capacity of the electrical wiring in the Project and the Premises and the needs of other tenants and shall not use more than such
safe capacity. Landlord’s consent to the installation of electric equipment shall not relieve Tenant from the obligation not to use more
electricity than such safe capacity.

 

 19. Tenant assumes full responsibility for protecting the leased Premises from graffiti, theft, robbery and pilferage.

 

 20. Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s ordinary use of the Premises and shall keep all such machinery free of vibration, noise and air waves which may be transmitted beyond the Premises.

 

    E-2

     

    

 

 21. No vehicle washing allowed on Property or Premises unless provided by contracted service that does not use Property water. Exterior Property water is for Common Area use only and not for the use of the Tenant, unless permission is given to the Tenant by written notice.

 

 22. No auto/vehicle repair work is to be done anywhere on Property, except the interior of Tenant’s Premises, if that is Tenant’s business activity as stated in the lease. Tenants who are allowed to repair customer vehicles as part of their business cannot park such vehicles overnight in the parking lot. They must be stored inside the Tenant’s

 

Premises.

 

 23. The maximum speed limit for all vehicles on the property is 10 miles per hour or as posted, depending on conditions. The Tenant is responsible for compliance of all traffic regulations by it and its employees, vendors, clients and customers.

 

24. 
a. Tenant must properly remove and dispose of fats, oils and grease and shall NOT dispose of fats, oils and grease down a toilet or a
drain. Tenant shall comply with all applicable laws, rules and regulations regarding the disposal of FOG. Tenant acknowledges that if
fats, oils and grease is improperly disposed of, it can cause significant problems in the sewer line and possibly lead to sewer overflows.

 

b. Tenant
must establish an effective fats, oils and grease management program for recyclable grease, interceptor and grease trap waste. Tenant
must provide landlord with monthly receipt showing that they have had a certified company effectively clean out and service grease interceptors.

 

c. Tenant shall be liable for
the costs of repairs and any damages that relate or pertain to the failure to maintain and follow an adequate fats, oils and grease maintenance
and disposal system.

 

 

 

E-3

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