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Exhibit 10.28    
  

 
 

AIRCRAFT LEASE    
  

        THIS LEASE made as of this 6th day of May, 2002 ("Lease") by and between N2T, Inc., an Oregon corporation ("Lessor"), and Oakley, Inc., a Washington
corporation, with its principal offices located at One Icon, Foothill Ranch, CA 92610 ("Lessee"). 

1.    LEASE OF THE AIRCRAFT    

        Subject
to the terms and conditions contained herein, Lessor agrees to lease to Lessee and Lessee agrees to lease from Lessor that certain Global Express aircraft bearing manufacturers
serial number 9084 and currently registered with the Federal Aviation Administration ("FAA") in the United States of America under registration number N2T with two (2) Rolls Royce model
BR710A2-20 engines, manufacturer's serial numbers 12283 and 12282, together with all accessories, parts, appliances, and appurtenances now or hereafter a part thereof, substitutions
therefore, and repairs thereto (the "Aircraft"). 

2.    DELIVERY OF AIRCRAFT    

        The
Aircraft, together with all current and complete logs, books and records (including any computerized maintenance records) pertaining to the Aircraft and its maintenance in legible
form, shall be delivered to Lessee at Hillsboro, Oregon or such other location as may be mutually agreed, on or about May 7, 2002. The date on which Lessee executes the Delivery and Acceptance
Certificate in the form attached as Exhibit A hereto is referred to as the "Delivery Date." 

3.    TERM    

        The
"Lease Term" shall commence on the Delivery Date and shall terminate on December 31, 2007 (or earlier in accordance with the next sentence). Lessee will have the right for any
reason whatsoever to terminate this Lease before the end of the Lease Term, by giving Lessor not less than sixty (60) days' prior written notice of its intention so to terminate this Lease. No
Aggregate Rentals (as defined below) shall be due for any period after termination or early termination of this Lease. 

4.    RENT    

        Lessee
shall pay Lessor as "Fixed Rental" Ninety Thousand Dollars ($90,000) per calendar year during the Lease Term. The Fixed Rental for any partial year during the Lease Term shall be
prorated based on the ratio of the number of days in such partial year to 365 days. The prorated Fixed Rental for 2002 shall be due and payable on or before the Delivery Date. Thereafter, the
Fixed Rental shall be due and payable on or before the first of January for each subsequent year. If this Lease terminates early, Lessor shall refund to Lessee the prorated Fixed Rental for any unused
period. The sum of the Fixed Rentals and all other charges, payments and indemnities due by Lessee hereunder are hereinafter referred to as "Aggregate Rentals." 

5.    CERTAIN COVENANTS OF LESSEE    

        Lessee
hereby covenants and agrees as follows: 

        (a)    Furnishing of Information    

        Lessee
shall furnish from time to time to Lessor such information regarding Lessee's use, operation or maintenance of the Aircraft as Lessor may reasonably request. 

        (b)    Lawful Use    

        The
Aircraft shall not be maintained, used, operated or stored in violation of any law or any rule, regulation or order of any government or governmental authority having jurisdiction
(domestic or foreign), or in violation of any airworthiness certificate, license or registration relating to the Aircraft or its use, or in violation or breach of any representation or warranty made
with respect to obtaining 

 

insurance on the Aircraft or any term or condition of such insurance policy. Aircraft operations shall be in compliance with Part 91 of Title 14 of the Code of Federal Regulations. 

        (c)    Aircraft Location    

        The
Aircraft shall not be operated or located in (i) any area excluded from coverage by the terms of insurance or (ii) any recognized or threatened area of hostilities,
unless fully covered to Lessor's satisfaction by war risk insurance. 

        (d)    Base of the Aircraft    

        The
Aircraft shall be principally based at Hillsboro, Oregon or such other location as agreed to between Lessor and Lessee during the Lease Term and Lessee agrees to notify Lessor
promptly of any change in the principal base. 

        (c)    Transportation Code Filings    

        Lessee
shall, at its sole cost and expense, take all steps necessary to preserve and protect the U.S. registration of the Aircraft under the applicable provisions of Title 49 of the U.S.
Code, and the rules and regulations promulgated thereunder. 

        (d)    Aircraft Operation    

        Lessee
will be in operational control of the Aircraft at all times during the term hereof, and shall not sell, transfer, assign, encumber or, except with Lessor's prior written consent,
sublet or part with such possession of the Aircraft or any of its rights tinder this Lease and shall be solely responsible for its possession, use and operation. Lessee shall bear all operating costs
including, but not limited to: the cost of fuel, crew salaries, expenses and employee benefits; handling and custom fees and related charges; hangar and storage charges; insurance premiums for all
insurance coverage required by this
Lease; and all fines, fees or penalties arising directly or indirectly out of this Lease or Lessee's operation of the Aircraft. 

        (g)    Log Books    

        Lessee
shall maintain all current and complete logs, books and records (including any computerized maintenance records) pertaining to the Aircraft and its maintenance during the Lease
Term in accordance with FAA rules and regulations and Lessee shall, at the end of the Lease Term, deliver such records in legible form to Lessor. 

        (h)    Pilots    

        The
Aircraft shall, at all times during the Lease Term, be operated by duly qualified, current, and rated (appropriate to the Aircraft) pilots paid and contracted for by Lessee and
employed by Lessee, whose licenses are in good standing, who meet the requirements established and specified by the insurance policies required hereunder and by the FAA, and who have attended and
successfully completed the manufacturer's approved training course for this type of Aircraft. 

        (i)    Alterations    

        Lessee
shall not in any way alter, modify or make additions or improvements to the Aircraft, except as specifically required by Section 6 or under applicable laws or regulations,
without the prior written consent of Lessor. All non- severable alterations, modifications, additions and improvements which are made shall become the property of Lessor and shall be
subject to all the terms of this Lease. 

        (j)    Identification    

        Lessee
shall keep a legible copy of this Lease in the Aircraft at all times. 

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        (k)    Liens    

        Without
the prior written consent of Lessor, Lessee will not directly or indirectly create, incur, assume or suffer to exist any liens on or with respect to (x) the Aircraft or
any part thereof, (y) Lessor's title thereto or (z) any interest of the Lessor therein, except (i) the respective rights of Lessor and Lessee as herein provided,
(ii) Lessor Liens (as defined below), (iii) liens for taxes of Lessee either not yet due or being contested in good faith by appropriate proceedings so long as such proceedings do not
involve any material danger of the sale, forfeiture or loss of the Aircraft, any risk of any material civil liability or any risk of criminal liability on the part of Lessor, (iv) material
mens, mechanics', workmen's, repairmen's, employees' or other like liens arising in the ordinary course of Lessee's business (including those arising under maintenance agreements entered into in the
ordinary course of business) securing obligations that are not overdue for a period of more than thirty (30) days or are being contested in good faith by appropriate proceedings so long as such
proceedings do not involve any material danger of the sale, forfeiture or loss of the Aircraft or of any interest of Lessor therein, or any risk of criminal liability, (v) liens arising out of
any judgment or award against Lessee not covered by insurance, unless the judgment secured shall not, within sixty (60) days after the entry thereof, have been discharged, vacated, reversed or
execution thereof stayed pending appeal or shall not have been discharged, vacated or reversed within sixty (60) days after the expiration of such stay, and (vi) any other lien with
respect to which Lessee shall have provided a bond, cash collateral or other security adequate in the reasonable opinion of Lessor. Lessee shall promptly, at its own expense, take (or cause to be
taken) such actions as may be necessary to discharge duly any such lien not excepted above if the same shall arise at any time. "Lessor Liens" means any Lien arising as a result of (a) claims
against Lessor not related to this Lease, (b) acts or omissions of Lessor not related to this Lease or in breach of any representation, warranty or covenant hereunder, (c) events or
circumstances that occurred prior to the commencement of this Lease, (d) taxes, fees, charges and assessments that are not indemnified or payable by Lessee hereunder, or (e) any
transfer, sale or assignment by Lessor of any interest in this Lease or the Aircraft. 

        (l)    Taxes    

        Lessee
agrees to pay all property taxes, tolls, license fees or assessments, and landing fees (collectively, "Charges") which may be levied or assessed by any government against the
Aircraft or the use thereof, in each case to the extent attributable to the period of the Lease Term. In addition, Lessee shall be liable to pay any retail sales or use tax that. may be imposed on or
with respect to the amount of the Fixed Rentals hereunder (a "Rental Tax"), but Lessee shall not be liable to pay any Rental Tax imposed or based on or with respect to any amount other than
(i) the Fixed Rentals or (ii) in the case of Washington State retail sales tax, an assumed rental rate of approximately $7,000 per flight hour, and if Lessee is required to pay taxes
above the amount Lessee is responsible for under this Section 5(1), Lessor is obligated to reimburse Lessee for the excess of the amount Lessee is responsible for under this
Section 5(1). Lessee will reimburse Lessor for any such Charges and Rental Taxes which Lessor shall be required to pay; however, Lessee may contest any assessment of a Charge or a Rental Tax on
Lessor and Lessor shall provide Lessee with a timely opportunity to defend against such assessment and cooperate in the defense thereof at Lessee's expense. Lessee shall, upon receipt of written
request from Lessor, submit to Lessor evidence of Lessee's payment of any Charges and Rental Taxes due by Lessee. 

6.    AIRCRAFT MAINTENANCE    

        (a)    Maintenance    

        During
the Lease Term and until such time as the Aircraft is returned to Lessor, Lessee agrees, at the direction of Lessor and at Lessee's expense, to cause the Aircraft to be maintained
at all times in (A) fully operational, duly certified and airworthy condition and maintained in accordance with the manufacturer's recommended inspection program (FAR 91.409(f)(3)) and
(B) condition adequate to 

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comply with all regulations of the FAA or any other governmental agency having jurisdiction over the maintenance, use or operation of the Aircraft. Without limiting the foregoing, Lessee shall
maintain, inspect, service and test the Aircraft and perform all repairs on the Aircraft in accordance with (i) all maintenance manuals for the Aircraft from time to time issued by the airframe
manufacturer, the engine manufacturer or any other applicable manufacturer, (ii) all recommended service bulletins which might have a detrimental effect on the Aircraft airworthiness or safety
of the Aircraft if not performed, and (iii) all airworthiness alerts and airworthiness directives issued by the FAA or any other governmental agency having jurisdiction. All work required by
this Section 6(a) shall be undertaken and completed only by properly trained, licensed and certified maintenance personnel. All replacement parts shall be of the type approved by the airframe
manufacturer, be of the same or better quality as the replaced part, and become the property of Lessor (free and clear of all liens and encumbrances other than the liens described in clauses
(i) through (vi) of Section 5(k) hereof upon installation. Notwithstanding the foregoing. Lessor shall pay any extraordinary costs of maintenance or of complying with
manufacturer's service bulletins or FAA airworthiness alerts and directives. 

        (b)    Rights Against Third Parties    

        Lessor
hereby assigns to Lessee for the Lease Term all presently existing and future rights of Lessor against the manufacturer of, or service facility for, the airframe, engines,
accessories, equipment and component parts of the Aircraft or any replacement thereof with respect to the obligation of said manufacturer or service facility under the warranties granted pursuant to
the sale or servicing of such property. Lessee shall perform, and Lessor shall cooperate with Lessee to perform, all acts necessary to make a claim under any such warranty at Lessee's own expense. 

7.    INSPECTION    

        Lessor
or its designee shall have the right, but not the duty, to inspect the Aircraft at any reasonable time and upon reasonable notice, provided that each such inspection shall be
subject to Lessees safety and security rules applicable to the location of the Aircraft and no exercise of such inspection right shall interfere with the normal operation or maintenance of the
Aircraft by Lessee or violate requirements of applicable insurance policies. Upon Lessor's request, Lessee shall advise Lessor of the Aircraft's location and, within a reasonable time and, provided
there is no undue inconvenience and delay to Lessee, shall permit Lessor to examine all information, logs, documents and Lessee's records regarding or with respect to the Aircraft and its use
maintenance or condition. 

8.    LOSS OR DAMAGE    

        (a)    Casualty Occurrences    

        In
the event of a Casualty Occurrence, the Lease Term and Lessee's liability hereunder for any further Fixed Rentals shall terminate, and Lessor shall be entitled to recover possession
of the Aircraft. Lessee shall immediately report a Casualty Occurence to Lessor and, as required by law, to governmental agencies. Lessor and Lessee shall proceed diligently and cooperate fully with
each other to secure a recovery for any Casualty Occurrence. All proceeds of insurance referred to in Section 9 below, and/or all proceeds of any compensation in connection with the
condemnation, confiscation, seizure or requisition of the Aircraft, applicable to a Casualty Occurrence shall be paid to Lessor. As used herein, a "Casualty Occurrence" shall mean any of the following
events with respect to the Aircraft: (i) loss of the Aircraft or the use thereof due to the destruction, damage beyond repair or rendition of the Aircraft permanently unfit for normal use for
any reason whatsoever; (ii) any damage to the Aircraft (including, but not limited to, anything requiring the completion of an FAA Form 337 "Major Repair and Alteration Statement") which
results in an insurance settlement with respect to the Aircraft on the basis of a total loss; (iii) the theft or disappearance of the Aircraft which shall have resulted in the loss of
possession of the Aircraft by Lessee for a period of five (5) consecutive days or more; or (iv) the condemnation, confiscation or seizure of, or the requisition of title to or use or 

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possession of, the Aircraft for a period of five (5) consecutive days or more. A Casualty Occurrence with respect to the Aircraft shall be deemed to have occurred if a Casualty Occurrence
occurs with respect to the airframe of such Aircraft. 

        (b)    Repairable Damage    

        If
repairable damage occurs to the Aircraft or any part thereof that does not constitute a Casualty Occurrence, Lessee's obligation to pay rent under this Lease shall continue. To the
extent necessary and appropriate, Lessee shall apply the proceeds of any insurance referred to in Section 9 below paid with respect to such damage to the repair of the Aircraft. 

9.    INSURANCE    

        (a)    Public Liability and Property Damage Insurance    

        Lessee
represents and warrants that it will maintain in effect, at its own expense with insurers of recognized responsibility reasonably satisfactory to Lessor, (i) public
liability insurance, including bodily injury and property damage (including, without limitation, passenger legal liability) in an amount not less than $200,000,000 for each single occurrence and
(ii) such other property damage insurance (exclusive of manufacturer's property liability insurance) with respect to the Aircraft as is of the type and in the amounts usually carried by
corporations similarly situated with Lessee, and owning or operating similar aircraft and engines and which covers risks of the kind customarily insured against by such corporations. Lessee shall
provide at its own expense worker's compensation insurance with all-states coverage for the crew and maintenance personnel. 

        (b)    Insurance Against Loss or Damage to the Aircraft    

        Lessee
represents and warrants that it will maintain in effect, at its own expense, with insurers of recognized responsibility reasonably satisfactory to Lessor, all-risk
ground and flight aircraft hull insurance covering the Aircraft, including F.O.D. (foreign object damage), fire and explosion coverage, and lightning and electrical damage, and with respect to any
Engines or Parts while removed from the Aircraft, and with respect to any engines or parts while temporarily installed on the Aircraft, provided that such insurance shall at all times while the
Aircraft is subject to this Lease be for an amount of not less than the "Fair Market Value" of the Aircraft. For all purposes hereof, the Fair Market Value of the Aircraft shall be assumed to be
$45,000,000, unless, at the request of either party, a valuation is obtained from a mutually agreed upon appraiser, in which event such appraised value shall be the Fair Market Value of the Aircraft.
Lessee shall additionally maintain in effect, at its own expense, with insurers of recognized responsibility reasonably satisfactory to Lessor, war risk, hijacking (air piracy), governmental
confiscation and expropriation insurance with respect to the Aircraft in a face amount of not less than the Fair Market Value for the Aircraft from time to time which shall be in full force and effect
throughout any geographical areas at any time traversed by the Aircraft. 

        (c)    Insured Parties as Additional Insured; Notice    

        Any
policies of insurance carried in accordance with this Section and any policies taken out in substitution or replacement for any such policies (i) shall name Lessor as an
additional named insured as its interest may appear, (ii) with respect to insurance carried in accordance with paragraph (b) covering the Aircraft, shall be made payable (A) to
Lessee, with respect to any damage to the Aircraft or any part thereof if such damage does not constitute a Casualty Occurrence, and shall be applied by Lessee to payment of the costs actually
incurred with respect to repairs made to the Aircraft so as to restore it to the operating condition required by Section 6 hereof and any excess shall be disbursed as otherwise required by this
Lease, or (B) to Lessor in the case of a Casualty Occurrence, (iii) shall provide that if the insurers cancel such insurance for any reason whatever, or any substantial change is made in
the coverage which affects the interests of Lessor, or the same is allowed to lapse for nonpayment of premium or such insurance coverage is reduced, such cancellation, change, lapse or 

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reduction shall not be effective as to Lessor for thirty (30) days following receipt by Lessor of written notice by such insurers of such cancellation, change, lapse or reduction and
(iv) shall provide that in
respect of the interest of Lessor in such policies the insurance shall not be invalidated by any action or inaction of Lessee or any other Person (other than Lessor) and shall insure Lessor's
interest, as it appears, regardless of any breach or violation of any warranties, declarations or conditions contained in such policies by Lessee or any other Person (other than Lessor). Each
insurance policy and its respective coverage amounts obtained in accordance with the requirements set forth in paragraphs (a) and (b) of this Section 9, (i) shall be
primary without right of contribution from any other insurance which is carried by Lessor to the extent that such other insurance provides Lessor with contingent and/or excess liability insurance with
respect to its interest as such in the Aircraft and (ii) shall expressly provide that all of the provisions thereof, except the limits of liability, shall operate in the same manner as if there
were a separate policy covering each insured, and shall waive any right of the insurers to any set-off or counterclaim or any other deduction, by attachment or otherwise, in respect of
Lessor or Lessee. 

        (d)    Reports, etc.    

        Lessee
will advise Lessor in writing promptly of any default in the payment of any premium and of any other act or omission on the part of Lessee which might invalidate or render
unenforceable, in whole or in part, any insurance on the Aircraft. Lessee will also advise Lessor in writing at least thirty (30) days prior to the expiration or termination date of any
insurance carried and maintained on the Aircraft pursuant to this Section. In the event Lessee shall fail to maintain insurance as herein provided, Lessor may, at its option, provide such insurance,
and Lessee shall, upon demand, reimburse Lessor for the cost thereof. 

10.    RETURN    

        (a)    Location    

        Upon
the termination or expiration of the Lease Term, Lessee shall return the Aircraft, in accordance with Section 10(b), at Hillsboro, Oregon or at such other location within the
48 contiguous United States as may be agreed between Lessor and Lessee. All expenses for delivery and return of the Aircraft shall be borne by Lessee. 

        (b)    Return Condition    

        Upon
return (other than a return upon a Casualty Occurrence where provisions of Section 8 shall apply) and at Lessee's expense (or at Lessor's expense as specified in
Section 6(a)), the Aircraft must satisfy all of the following conditions: 

	(i)
	The
Aircraft must be in an airworthy and serviceable condition, meet all of the applicable regulations of the FAA, and have a valid and continuing FAA certificate of airworthiness;

	(ii)
	The
Aircraft must be returned with all equipment, parts, components, passenger service items and other accessories that were on or in the Aircraft when delivered to Lessee in a
serviceable condition (ordinary wear and tear excepted) or with an equivalent or better replacement thereof;

	(iii)
	All
exterior paint and interior components (including, without limitation, paint, carpet, fabric and wood paneling) must be in the same good appearance as when the Aircraft was
delivered to Lessee (ordinary wear and tear excepted), and any Lessee identification or logo in or on the Aircraft shall have been removed by Lessee;

	(iv)
	The
Aircraft must be returned with all and complete originals of the logs, manuals, certificates, data, inspection, modification and overhaul records that were on or in the Aircraft
when delivered to Lessee or are required to be obtained and maintained by Lessee hereunder 

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(or
if originals are not available, then any consequences of or conditions to use of new logs and new maintenance records under FAA rules and regulations shall be observed or complied with), and all
entries therein must be complete, correct and current, and in the case of any modifications made to, or supplemental type certificates incorporated in, the Aircraft, all engineering documents and
drawings therefor must also be returned; 

	(v)
	The
Aircraft shall undergo a reasonable inspection or inspections or a flight test or tests, as required in Lessor's discretion, resulting in Lessor's determination that the Aircraft
and all parts, components, systems and records comply with FAA standards at that date and meet all of the above conditions. 

        If
Lessee does not return the Aircraft in accordance with the above condition, (A) Lessor may make (or cause to be made) any repairs reasonably necessary to restore the Aircraft
to the required condition, (B) Lessee shall reimburse Lessor, upon demand, for any costs, expenses and fees related to such restoration (including, without limitation, costs and expenses
incurred as a result of actions pursuant to the parenthetical in clause (iv) above) and/or (C) Lessee shall compensate Lessor for the diminished value of the Aircraft resulting from
Lessee's failure to return the Aircraft in such condition to Lessor's satisfaction. 

        If
the parties hereto cannot agree on the diminished value of the Aircraft mentioned in the preceding clause (C) above, said value shall be established by using the average of the
diminished value determined by two appraisals (each party appointing one appraiser) if these are within five percent (5%) of each other; if not, a third appraisal shall be done (the appraiser being
appointed by the two preceding appraisers) and the average of the two closest appraisals shall be used. 

11.    REPRESENTATIONS AND WARRANTIES OF LESSEE    

        Lessee
represents and warrants to Lessor as follows: 

        (a)    Due Organization    

        Lessee
is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of its incorporation, is duly qualified to do business as a foreign
corporation in good standing in each other jurisdiction where the conduct of its business requires it to be so qualified and a failure to be so qualified would have a material adverse affect on
Lessees business or financial condition, is a "Citizen of the United States" within the meaning of Section 40102(a)(15) of Title 49 of the United States Code or any similar legislation of the
United States of America enacted in substitution or replacement therefor, and has the corporate power and authority to enter into and perform its obligations under this Lease. 

        (b)    Due Authorization; Enforceability; No Violation    

        This
Lease has been duly authorized by all necessary corporate action on the part of Lessee, does not require any approval of the stockholders of Lessee, has been duly executed and
delivered by Lessee, and constitutes the legal, valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms. The execution and delivery by Lessee of this Lease, and
the performance by Lessee of its obligations hereunder, will not be inconsistent with its charter or by-laws, do not and will not contravene any law, governmental rule or regulation,
judgment or order applicable to or binding on Lessee, do not and will not contravene any provision of, or constitute a default or result in the creation of any lien (except Lessee's interest
hereunder) under, any indenture, mortgage, contract or other instrument to which Lessee is a party or by which it is bound, and do not and will not require any approval or consent of any trustee or
holders of indebtedness or obligations of Lessee, except such as have been duly obtained. 

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        (c)    Government Approvals    

        No
consent or approval of, giving of notice to, registration with, or taking of any other action in respect of or by, any federal, state or local governmental authority or agency
(including. without limitation, the FAA or any similar agency) is required with respect to the execution, delivery and performance by
Lessee of this Lease or the consummation of any of the transactions by Lessee contemplated hereby, or if any such approval, notice, registration or action is required, it has been duly given or
obtained; except that as a condition to being able to operate the Aircraft, Lessee is required to, and shall, comply with Section 91.23(c) of Title 14 of the Code of Federal Regulations. 

        (d)    Location of Chief Executive Offices    

        The
chief executive office or chief place of business (as either of such terms is used in Article 9 of the Uniform Commercial Code) of Lessee is located at its address set forth
hereinabove, and Lessee agrees to give Less or prior written notice of any relocation of said chief executive office or chief place of business from its present location. 

12.    REPRESENTATIONS AND WARRANTIES OF LESSOR    

        Lessor
represents and warrants to Lessee as follows: 

        (a)    Due Organization    

        Lessor
is a corporation duly organized and validly existing in good standing under the laws of the jurisdiction of its incorporation, is duly qualified to do business as a foreign
corporation in good standing in each other jurisdiction where the conduct of its business requires it to be so qualified and has the corporate power and authority to carry on its business and to enter
into and perform its obligations under this Lease. 

        (b)    Due Authorization; Enforceability; No Violation    

        This
Lease has been duly authorized by all necessary corporate action on the part of Lessor, does not require any approval of the stockholders of Lessor, has been duly executed and
delivered by Lessor, and constitutes the legal, valid and binding obligation of Lessor, enforceable against Lessor in accordance with its terms. The execution and delivery by Lessor of this Lease, and
the performance by Lessor of its obligations hereunder, will not be inconsistent with its charter or by-laws and will not contravene any law, governmental rule or regulation, judgment or
order applicable to, or binding on, Lessor. 

        (c)    Undisclosed Defects    

        Lessor
has no knowledge of undisclosed defects in the Aircraft. 

13.    LESSOR'S DISCLAIMER    

        EXCEPT
AS SET FORTH ABOVE, LESSOR (AND ITS AFFILIATES) DOES NOT MAKE, HAS NOT MADE, NOR SHALL BE DEEMED TO MAKE OR HAVE MADE, ANY WARRANTY OR REPRESENTATION, EITHER EXPRESS OR IMPLIED,
WRITTEN OR ORAL, WITH RESPECT TO THE AIRCRAFT LEASED HEREUNDER OR ANY ENGINE OR COMPONENT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY AS TO DESIGN, COMPLIANCE WITH SPECIFICATIONS, QUALITY OF
MATERIALS OR WORKMANSHIP, MERCHANTABILITY, FITNESS FOR ANY PURPOSE, USE OR OPERATION, AIRWORTHINESS, SAFETY, PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT, OR TITLE. All such risks, as between Lessor
(and its affiliates) and Lessee, are to be borne by Lessee. Without limiting the foregoing, Lessor and its affiliates shall have no responsibility or liability to Lessee or any other person with
respect to any of the following, regardless of any negligence of Lessor or its affiliates: (i) any liability, loss or damage caused or alleged to be caused, directly or indirectly by the 

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Aircraft, any inadequacy thereof, any deficiency or defect (latent or otherwise) therein, or any other circumstance in connection therewith; (ii) the use, operation or performance of the
Aircraft or any risks relating thereto, (iii) any interruption of service, loss of business or anticipated profits or consequential damages. or (iv) the delivery, operation, servicing,
maintenance, repair, improvement or replacement of the Aircraft. 

14.    INDEMNIFICATION    

        (a)    General Indemnity    

        Lessee
shall indemnify and save harmless Lessor, its affiliates, its successors and assigns, their directors, officers and employees (each, an "Indemnitee"), from and against any and all
losses, claims (including. without limitation, claims involving strict or absolute liability in tort, damage, injury, death, liability and third party claims), suits, demands, costs and expenses of
every nature (including, without limitation, reasonable attorneys' fees) arising directly or indirectly from or in connection with the possession, maintenance, condition, storage,use, operation or
return of the Aircraft under this Lease (each, a "Claim"); provided, that the foregoing indemnity shall not extend to an Indemnitee with respect to any
Claim to the extent such Claim is directly related to one or more of the following: (1) any breach of any representation or warranty by Lessor hereunder, or (2) the failure by Lessor to
perform or observe any of its agreements, covenants or conditions herein, or (3) the willful misconduct or the gross negligence of any Indemnitee, or (4) the offer, sale or other
disposition (voluntary or involuntary) of all or any part
of Lessor's interest in the Aircraft or any part thereof, or (5) any tax, fee, Charge, or assessment or (6) except to the extent fairly attributable to the Lease Term, acts or events
occurring, or circumstances or conditions existing, prior to, or after expiration or termination of, the Lease Term or actions taken (or required to be taken and not taken) prior to, or after
expiration or termination of, the Lease Term or (7) any amount which Lessor expressly agrees to pay hereunder or any amount which is expressly stated to be a Claim that is not reimbursable by
Lessee hereunder, or (8) any amounts relating to the deregistration with the FAA of the Aircraft as a result of the Lessor not being a Citizen of the United States. Lessee shall, upon request
of Lessor, defend any actions based on or arising out of any of the Claims that Lessee is responsible for. Lessor shall not pay or settle any Claim without the prior written consent of Lessee, which
shall not be unreasonably withheld or delayed, or conditioned (except on contest). 

        (b)    Survival    

        Lessee's
obligations under this Section 14 shall survive termination of this Lease and shall remain in effect until all required indemnity payments have been made by Lessee to
Lessor. 

15.    LESSEE'S DEFAULT    

        Each
of the following events shall constitute an "Event of Default" hereunder: 

        (a)  Lessee
shall fail to make payment of any Aggregate Rental when due and such failure shall continue for five (5) business days after Lessor gives Lessee written
notice of such failure; or 

        (b)  Lessee
shall fail to perform or observe any other covenant, condition or agreement to be performed or observed by it under this Lease or any agreement, document or
certificate delivered by Lessee in connection herewith in any material respect, and such failure shall continue for thirty (30) days after written notice thereof from Lessor to Lessee; or 

        (c)  Any
representation or warranty made by Lessee in this Lease or any agreement, document, certificate delivered by the Lessee in connection herewith is or shall become
incorrect in any material respect, and, if such a default is susceptible of being corrected, Lessee fails to correct such default with thirty (30) days of a written notice from Lessor
requesting correction of same; or 

        (d)  Lessee
shall become insolvent or cease to do business as a going concern; or 

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        (e)  Lessee
makes an assignment for the benefit of creditors, or if a petition is filed by or against Lessee under any bankruptcy or insolvency law; or 

If
a receiver is appointed for Lessee or any of Lessee's property. 

16.    LESSOR'S REMEDIES    

        (a)    Remedies    

        Upon
the occurrence of any Event of Default, Lessor may, at its option, exercise any and or all remedies available at law or in equity, including, without limitation, any or all of the
following remedies, as Lessor in its sole discretion shall elect: 

	(i)
	By
notice in writing terminate this Lease, whereupon all rights of Lessee to the use of the Aircraft or any part thereof shall absolutely cease and terminate but Lessee shall remain
liable as hereinafter provided; and thereupon Lessee, if so requested by Lessor, shall at its expense promptly return the Aircraft as required by Section 10 hereof or Lessor, at its option,
may, with or without legal process, enter upon the premises where the Aircraft may be located and take immediate possession of and remove the same. Lessee specifically authorizes Lessor's entry upon
any premises where the Aircraft may be located for the purpose of, and waives any cause of action it may have arising from, a peaceful retaking of the Aircraft; and

	(ii)
	Perform
or cause to be performed any obligation, covenant or agreement of Lessee hereunder. Lessee agrees to pay all costs and expenses incurred by Lessor for such performance as
additional Aggregate Rental hereunder and acknowledges that such performance by Lessor shall not be deemed to cure said Event of Default. 

        (b)    Costs and Attorneys Fees    

        Lessee
shall be liable for all costs, charges and expenses, including reasonable legal fees and disbursements, incurred by Lessor by reason of the occurrence of any Event of Default or
the exercise of Lessor's remedies with respect thereto. 

        (c)    Nonexclusive    

        No
remedy referred to herein is intended to be exclusive, but each shall be cumulative and in addition to any other remedy referred to above or otherwise available to Lessor at law or in
equity. Lessor shall not be deemed to have waived any breach, Event of Default or right hereunder unless the same is acknowledged in writing by a duly authorized representative of Lessor. No waiver by
Lessor of any default or Event of Default hereunder shall in any way be, or be construed to be, a waiver of any future or subsequent default or Event of Default. The failure or delay of Lessor in
exercising any rights granted it hereunder upon any occurrence of any of the contingencies set forth herein shall not constitute a waiver of any such right upon the continuation or recurrence of any
such contingencies or similar contingencies and any single or partial exercise of any particular right by Lessor shall not exhaust the same or constitute a waiver of any other right provided herein. 

17.    LESSOR'S ASSIGNMENT    

        It
is understood that Lessor may assign or pledge any or all of its rights in this Lease or the Aircraft without notice to or the consent of Lessee. Any payments received by the assignee
from Lessee with respect to the assigned portion of the Lease shall, to the extent thereof, discharge the obligations of Lessee to Lessor with respect to the assigned portion of the Lease. 

18.    NOTICES    

        Unless
specifically provided to the contrary herein all notices permitted or required by this Lease shall be in writing and shall be deemed given when sent by telecopy or by nationally
recognized courier 

10

 

service to the address set forth herein below, or such other address as may hereafter be designated by the addressee in a written notice to the other party. 

19.    ENTIRE AGREEMENT    

        The
terms and conditions of this Lease constitute the entire agreement between the parties as to the subject matter hereof and supersede all prior written and oral negotiations,
representations and agreements, if any, between the parties on such matters and shall be binding upon the parties, their successors, assigns and legal representatives. 

20.    MODIFICATION OF AGREEMENT    

        No
change or modification hereof or waiver of any term or condition hereof shall be effective unless the change or modification is in writing and signed by both parties. 

21.    TIME OF THE ESSENCE    

        Time
is of the essence in this Lease. 

22.    COUNTERPARTS    

        This
Lease maybe executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument. 

23.    HEADINGS    

        The
headings of Sections and subsections of this Lease (other than Section 25) are included for convenience only and shall not be used in its construction or interpretation. 

24.    GOVERNING LAW    

        THE
PARTIES HERETO ACKNOWLEDGE THAT THIS LEASE SHALL BE GOVERNED BY AND CONSTRUED IN ALL RESPECTS IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK INCLUDING, WITHOUT
LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

25.    TRUTH-IN-LEASING    

        (a)  LESSEE
HAS REVIEWED THE AIRCRAFT'S MAINTENANCE AND OPERATING LOGS SINCE ITS DATE OF MANUFACTURE AND HAS FOUND THAT THE AIRCRAFT HAS BEEN MAINTAINED AND INSPECTED UNDER
PART 91 OF THE FEDERAL AVIATION
REGULATIONS DURING SUCH PERIOD. LESSEE CERTIFIES THAT THE AIRCRAFT PRESENTLY COMPLIES WITH THE APPLICABLE MAINTENANCE AND INSPECTION REQUIREMENTS OF PART 91 OF THE FEDERAL AVIATION REGULATIONS. 

        (b)  LESSEE
CERTIFIES THAT LESSEE, AND NOT LESSOR, IS RESPONSIBLE FOR OPERATIONAL CONTROL OF THE AIRCRAFT UNDER THIS LEASE DURING THE TERM HEREOF. LESSEE FURTHER CERTIFIES
THAT LESSEE UNDERSTANDS ITS RESPONSIBILITY FOR COMPLIANCE WITH APPLICABLE FEDERAL AVIATION REGULATIONS. 

        (c)  LESSEE
CERTIFIES THAT THE AIRCRAFT WILL BE MAINTAINED AND INSPECTED UNDER PART 91 OF THE FEDERAL AVIATION REGULATIONS FOR OPERATIONS TO BE CONDUCTED UNDER THIS LEASE.
LESSEE UNDERSTANDS THAT AN EXPLANATION OF FACTORS BEARING ON OPERATIONAL CONTROL AND PERTINENT FEDERAL AVIATION REGULATIONS CAN BE OBTAINED FROM THE NEAREST FAA FLIGHT STANDARDS DISTRICT OFFICE,
GENERAL AVIATION DISTRICT OFFICE, OR AIR CARRIER DISTRICT OFFICE. 

11

 

        Notwithstanding
the foregoing, any inaccuracy in any statement or certification in Section 25(a) shall not in and of itself constitute an indemnifiable Claim or an Event of
Default hereunder. 

        IN
WITNESS WHEREOF, the parties hereto have each caused this Lease to be duly executed as of the year and day first above written. THIS AGREEMENT SHALL NOT BE EFFECTIVE UNTIL EXECUTED ON
BEHALF OF EACH PARTY. 

	 LESSOR:	 	LESSEE:
	
By:	
 	

/s/  JIM JANNARD      	
 	

By:	
 	

/s/  LINK NEWCOMB      
	 	 	
	 	 	 	

	

Title:	
 	

President	
 	

Title:	
 	

Chief Operating Officer
	 	 	
	 	 	 	

	

Address:	
 	

Address:
	Attention:	 	Attention:

12

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Exhibit 10.28

AIRCRAFT LEASEQuickLinks
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Exhibit 10.29    
  

 
 

AMENDMENT TO TRADEMARK LICENSE AGREEMENT
  AND ASSIGNMENT OF RIGHTS    
  

        THIS
AMENDMENT TO TRADEMARK LICENSE AGREEMENT AND ASSIGNMENT OF RIGHTS (the "Amendment") is entered into as of June 1, 2002, by and between Y, LLC, a Delaware limited liability
company jointly-owned by Jim Jannard and Bobbie Jannard ("Y, LLC"), and Oakley, Inc., a Washington corporation ("Oakley"). Capitalized terms used but not defined herein are used as defined in
the Agreement (as defined below). 

RECITALS  

        WHEREAS, Y, LLC and Oakley have previously entered into that certain Trademark License Agreement and Assignment of Rights, as of March 31, 2000 (the
"Agreement"); 

        WHEREAS,
since January 1, 1999, Y, LLC has sponsored Scotty Cannon, a National Hot Rod Association ("NHRA") driver, pursuant to a sponsorship agreement between Y, LLC and Scotty
Cannon, dba Cannonball Racing, for the purpose of pursuing the NHRA Funny Car Class Championship; 

        WHEREAS,
on December 15, 2001, Y, LLC and Don Schumacher Racing, an Illinois corporation ("Schumacher"), entered into a NHRA Top Fuel Funny Car Agreement (the "Schumacher
Agreement"), pursuant to which Y, LLC will work with Schumacher in the entry of a funny car driven by Scotty Cannon in the NHRA Drag Racing Series and Schumacher grants certain sponsorship rights to
Y, LLC; and 

        WHEREAS,
in light of certain terms and provisions contained in the Schumacher Agreement, Y, LLC and Oakley desire to amend the Agreement. 

        NOW,
THEREFORE, in consideration of the mutual agreements hereinafter set forth, Y, LLC and Oakley have agreed and do hereby agree to amend the Agreement effective as of
December 15, 2001 as follows: 

        1.    Section b.
of the Recitals contained in the Agreement is hereby deleted and replaced with the following: 

        "Oakley
owns certain Trademarks (as such term is defined in Section i.(2) of the Agreement)." 

        2.    Section i.(1)
of the Agreement is hereby deleted and replaced with the following: 

        "In
connection with the Sponsorship, Oakley hereby authorizes Y, LLC to use and place the Trademarks in all locations where Y, LLC has the right to place such Trademarks under the NHRA
Top Fuel Funny Car Agreement, dated December 15, 2001, by and between Y, LLC and Don Schumacher Racing, an Illinois corporation ("Schumacher"), and pursuant to any sponsorship agreement between
Y, LLC and Scotty Cannon, dba Cannonball Racing, as such agreements exist on, or existed prior to, June 1, 2002 without giving effect to any amendment entered into after June 1, 2002. 

        3.    Section i.(2)
of the Agreement is hereby deleted and replaced with the following: 

        "Oakley
hereby grants to Y, LLC a nonexclusive, non-transferable license and right to use all trademarks, service marks, copyrights, symbols, logos, emblems, decals, designs,
colors, likenesses or other visual representations owned by Oakley, to the extent Y, LLC is not the owner of those marks (collectively, the Trademarks"), to effectuate the Placement, subject to the
terms and conditions of this Agreement." 

 

        4.    Section i.(5)
of the Agreement is hereby added as a new subsection as follows: 

        "Oakley
hereby agrees to adequately supply (as determined by Oakley in its sole discretion) (a) Schumacher and its employees, including driver and crew employed by Schumacher
(collectively, the "Race Team"), (b) all members of the Race Team involved in building, testing or racing any and all NHRA racing vehicles, and (c) Scotty Cannon with Oakley sunglasses,
Oakley clothing and Oakley apparel." 

        5.    Except
as amended hereby, all of the provisions of the Agreement shall remain and continue in full force and effect. 

        6.    This
Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all the counterparts shall together
constitute one and the same instrument. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date hereof. 

	 	 	Y, LLC
	

 	
 	

By:	
 	

/s/  JIM JANNARD      
 Jim Jannard
 Member
	

 	
 	

By:	
 	

/s/  BOBBIE JANNARD      
 Bobbie Jannard
 Member
	

 	
 	

OAKLEY, INC.
	

 	
 	

By:	
 	

/s/  LINK NEWCOMB      
 Name: Link Newcomb

Title: COO

2

QuickLinks

Exhibit 10.29

AMENDMENT TO TRADEMARK LICENSE AGREEMENT AND ASSIGNMENT OF RIGHTS

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