Document:

Employment Agreement

 Exhibit 10.3 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (the “Agreement”) is made
and entered into as of the 26th day of June, 2006, by and between 4349466 CANADA, INC., a corporation duly incorporated under the Canadian Business Corporations Act (the “Company”), and FRED JALBOUT (the
“Employee”). 
 WHEREAS LSI Industries Inc. (“LSI”) has agreed to purchase from Saco Technologies
Inc. (the “Seller”) all of the issued and outstanding Common Stock of the Company and to carry on the Business (as hereinafter defined) as LSI Saco Technologies Inc. pursuant to a Stock Purchase Agreement dated of even date herewith (the
“Purchase Agreement”); 
 WHEREAS it is a condition precedent to LSI and the Company entering into the Purchase
Agreement that the Employee enter into this Agreement with the Company in the form hereof; 
 WHEREAS the Employee shall become
employed by the Company from and after the Closing Date; 
 WHEREAS the parties agree that the Company requires the protection of its
legitimate business interests; 
 WHEREAS the parties consequently desire to enter into this Agreement setting forth the terms and
conditions of the employment of the Employee with the Company and the benefits attaching thereto. 
 1. ENTIRE AGREEMENT 
 This Agreement (including any attachments and exhibits hereto, and any ancillary agreements, as the case may be), contains the entire agreement as to the terms of the
Employee’s employment with the Company and replaces and supersedes all previous negotiations, understandings, arrangements and agreements, whether written or verbal, express or implied between the parties. No other representations, covenants,
undertakings or other prior or contemporaneous agreements, oral or written, relating to the Employee’s employment will be deemed to exist or to bind either the Employee or the Company. Both the Company and the Employee understand and agree that
they have not relied on any statement or representation by the other party or any of its representatives in entering into this Agreement, except where such statements and representations are set forth herein. This Agreement shall not in any way
limit or restrict the scope of the undertakings of the Employee contained, as the case may be, in the Purchase Agreement as seller or owner thereunder. 

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 2. DEFINITIONS 
 For the purposes of this Agreement, the following terms have the meanings set out below: 
 “Affiliate” means with respect to any Person, any other Person directly or indirectly controlled, by or under common control with that
other Person, including any subsidiaries or other entities controlled by that other Person. 
 “Business” means the
development, design, manufacture and sale of large-format video screens and high-performance light engine devices derived from light emitting diode technology. 
 “Person” means an individual, corporation, company, co-operative, partnership, trust, unincorporated association, entity with juridical personality, governmental authority or governmental body.

 “Territory” means the United States, Canada and any other country in which products of the Company’s Business have
been sold, leased or distributed in the 12 months preceding the date of this Agreement. 
 3. TERM OF AGREEMENT 
 The term of this Agreement shall be for an initial three (3) year term commencing effective as of the date first set forth above and terminating on third anniversary
of such date (the “Term”). Thereafter, this Agreement may be renewed at the election of the Company, in its sole discretion, for successive one year periods by giving sixty (60) days written notice of such renewal prior to the
end of the then current Term; provided the Employee may elect not to renew this Agreement by giving the Company written notice of such election within fifteen (15) days of receipt of such notice. 
 4. DUTIES AND RESPONSIBILITIES 
  

	 	4.1	During the Term, the Employee shall: 

  

	 	(a)	Serve as President of LSI Technology Solutions Plus and President and Chief Executive Officer of the Company and perform all duties customarily attendant to such position and such
other duties as may be assigned from time-to-time by the Chief Executive Officer or the Chairman of the Board of LSI; 

  

	 	(b)	Do all that is reasonably within the Employee’s power to promote, develop and extend the operations and favourable reputation of the Company; 

  

	 	(c)	 Devote the Employee’s full time effort, skill, attention and energies to the performance of the Employee’s duties of employment under this Agreement and
in all respects carry out the objectives of the Company as well as diligently and faithfully serve the Company and promote its 

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interests in all matters to the best of the Employee’s ability and judgment; and 

  

	 	(d)	Furnish, in a timely manner, all information, reports, disclosures, assistance and explanations in connection with the performance of the Employee’s duties under this Agreement
as may be required from time to time. 

 5. COMPENSATION 
  

	 	5.1	The Company agrees to pay the Employee an annual base salary, less deductions properly withheld by law, for all services provided under this Agreement of CAN$227,000.00, payable in
accordance with the normal payroll practices of the Company. The Board of Directors of LSI shall conduct an annual review of the services rendered by the Employee hereunder for the preceding year and may, at its sole discretion, determine to
increase the Employee’s base salary in such amount as the Board may determine. 

  

	 	5.2	On the date of execution of this Agreement, Employee shall receive a one time grant of options to purchase 20,000 shares of LSI’s Common Stock at a purchase price equal to the
fair market value of the stock on the date of grant. Such options will be granted pursuant to the 2003 LSI Industries Inc. Equity Compensation Plan, as amended November 6, 2003, as such shall be amended from time to time (the
“Plan”). During the Term, the Employee shall be eligible to participate in the Plan, subject to the terms and conditions of the Plan. 

  

	 	5.3	Commencing on July 1, 2007, the Employee shall be eligible to receive a bonus equal to between 20% and 50% of the Employee’s annual base salary as stated in
Section 5.1 which shall be paid at the sole discretion of the Board of Directors of LSI. Such bonus shall be an amount determined by the Board of Directors of LSI in their sole discretion. 

  

	 	5.4	The Employee shall be eligible to participate in a Deferred Compensation Plan, subject to its terms, and shall receive an annual contribution in an amount equivalent to that amount
contributed to other similarly situated employees of LSI pursuant to LSI’s Retirement Plan. 

 6. EXPENSES 
 The Company shall reimburse the Employee for reasonable expenses incurred in the course of performing his duties pursuant to this Agreement, the whole subject to Company
policy for reimbursement of such expenses, which policy may be amended from time to time by the Company. 
 7. BENEFITS AND VACATION

  

	 	7.1	 The Employee shall be entitled to participate in such group [RRSP], medical, dental, visual and/or disability plans, if any, as may be provided (and amended or

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replaced) by the Company for its employees, subject to the Employee meeting and sustaining qualification and eligibility requirements for such plans.

  

	 	7.2	During the Term, the Employee will be entitled to an annual vacation of four (4) weeks, to be taken at times mutually agreed upon between the Employee and the Company. The
Employee shall not be entitled to carry forward any days of vacation beyond the year in which the Employee became entitled to such vacation. 

 8. NON-DISCLOSURE OF CONFIDENTIAL INFORMATION 
  

	 	8.1	The Employee agrees that, during the Term and thereafter, the Employee will not, directly or indirectly, disclose to any Person or entity, or use for the benefit of the Employee or
any Person or entity, any confidential, non-public, secret or proprietary information relating to the Business, prospects, or plans of the Company or its Affiliates (“Confidential Information”). The Employee shall not be in
violation of this section for a disclosure pursuant to a court action or governmental rule, regulation, or other proceeding (“Ordered Disclosure”) provided that the Employee has notified the Company of the Ordered Disclosure within two
business days of being notified of the request for Ordered Disclosure. The Employee agrees to cooperate in good faith with the Company in responding to the Ordered Disclosure in order to prevent, limit or impose restrictions on the Ordered
Disclosure. In no event, however, shall this section require the Employee to take action or otherwise be in violation of any law relating to the Ordered Disclosure. 

  

	 	8.2	On cessation of the Employee’s employment with the Company for whatever reason, the Employee shall immediately provide to the Company all working papers, reports, manuals,
documents, and the like (including all originals and copies) in the Employee’s possession which contain Confidential Information (which are acknowledged by the Employee as being the property of the Company) and any other property belonging to
the Company or its Affiliates in the Employee’s possession. 

  

	 	8.3	The Employee agrees that, during the Term and thereafter, the Employee will not disclose, or cause to be disclosed, any negative, adverse or derogatory comments or information of a
substantial nature about: 

  

	 	(a)	the Company or its Affiliates, or any management member of the Company or its Affiliates; 

  

	 	(b)	any products or services provided by the Company or its Affiliates; or 

  

	 	(c)	the prospects for the future of the Company or its Affiliates. 

  

	 	8.4	 Subsequent to the cessation of the Employee’s employment with the Company, for whatever reason, the Company may seek the assistance, cooperation or testimony
of the Employee in connection with any investigation, litigation or 

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proceeding arising out of matters within the knowledge of the Employee and related to the Employee’s position with the Company. The Employee shall
provide assistance, cooperation or testimony as reasonably required by the Company. If such assistance, cooperation or testimony requires more than a nominal commitment of the Employee’s time, the Company will compensate the Employee for such
time at a per diem rate derived from the Employee’s salary at the time of the Employee’s employment with the Company ended as well as all other reasonable costs and expenses incurred by the Employee, acting reasonably, associated with the
Employee’s assistance pursuant to this section. 

 9. COVENANT NOT TO SOLICIT OR COMPETE WITH THE BUSINESS 

 

	 	9.1	The Employee agrees that during the Term and for a period of twenty-four (24) months following the cessation of the Employee’s employment for whatever reason, the Employee
shall not, directly or indirectly, on his own behalf or on behalf of, or in connection with, any other Person, as principal, agent, creditor, advisor, consultant, owner, partner, independent contractor, employee, shareholder, director, officer or in
any capacity whatsoever: 

  

	 	(a)	employ, offer employment to, solicit the employment or service of, or procure or assist any Person to employ, offer employment to, solicit the employment or service of, or otherwise
entice away from the employment or service of the Company or its Affiliates, any Person who is employed by the Company or its Affiliates; 

  

	 	(b)	canvas or solicit or accept or interfere with the business of any Customer, or procure or assist in the canvassing or soliciting of the business of any Customer, or canvas or
solicit or accept the business of any Prospective Customer, or procure or assist in the canvassing or soliciting of any Prospective Customer. 

  

	 	9.2	The Employee and the Company agree that the following terms shall have the following meanings: 

  

	 	(a)	“Customer” shall mean any and all Persons having, to the knowledge of the Employee, purchased services from the Company or its Affiliates at any time during the twelve
(12) months preceding the termination of the Employee’s employment; 

  

	 	(b)	“Prospective Customer” shall mean any Person canvassed or solicited by the Company or its Affiliates, to the knowledge of the Employee, at any time during the twelve
(12) months preceding the termination of the Employee’s employment, irrespective of whether or not such Person thereafter purchased services from the Company or its Affiliates. 

  

	 	9.3	 The Employee acknowledges that the Employee is a key employee occupying a special relationship with the Company and consequently the Employee, during the Term, will
receive from the Company, special knowledge and Confidential 

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Information of the Company, including, but not limited to, corporate books and records, financial information, personnel information, lists of customers and
suppliers, processes or dealings, patents, inventions, discoveries, information, data, programs, know-how, knowledge and other trade secrets. The Employee also acknowledges that this special knowledge and Confidential Information are valuable to the
Company and, therefore, their protection and maintenance constitute a legitimate interest to be protected by the Company by the enforcement of a covenant not to compete. Consequently, the Employee agrees that during the Term and for a period of
twenty-four (24) months after the Employee’s resignation or the termination of the Employee’s employment with the Company, as the case may be, on his own behalf, or on behalf of, or in connection with, any Person, whether directly or
indirectly, as principal, agent, creditor, advisor, consultant, owner, partner, independent contractor, employee, shareholder, director, officer, or in any capacity whatsoever, carry on or be engaged in or have any financial or other interest in, or
be otherwise commercially involved in any endeavour, activity or business in all or part of the Territory, which is substantially the same or is in competition, in whole or in part, with the Business. 

  

	 	9.4	The Employee shall not be in breach of this Section 9 by virtue of his holding, as a passive investor, not more than 5% of the issued and outstanding shares of a corporation
which is listed on a recognized stock exchange or by reason of providing part-time services to a charity, not-for-profit organization or educational institution for which the Employee does not receive any compensation or remuneration.

  

	 	9.5	The Employee acknowledges that a remedy at law for any breach or attempted breach of this Section 9 will be inadequate and that any breach of this Section 9 will result in
irreparable harm to the Company. Accordingly, the Company shall, in addition to any other remedy that may be available, be entitled to specific performance and injunctive and other equitable relief in case of any such breach or attempted breach.

  

	 	9.6	The Employee acknowledges that this Section 9 contains reasonable limitations as to time, geographical area and scope of activity to be restrained that do not impose a greater
restraint than is reasonable or necessary to protect the goodwill or other legitimate business interests of the Company. 

 10.
TERMINATION OF AGREEMENT BY THE COMPANY 
  

	 	10.1	“Cause” shall mean the following events or conditions: 

  

	 	(a)	 the Employee’s commission of a criminal act or other indictable offence (other than minor misdemeanors) pursuant to the provisions of the Criminal Code
(Canada) or any other criminal or penal statute of any jurisdiction, which the Company reasonably determines may have an 

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adverse effect upon the reputation or goodwill of the Company or its Affiliates or on the performance of the Employee’s duties;

  

	 	(b)	a breach by the Employee of, or the Employee’s failure or refusal to perform, in any material respect, any of the Employee’s obligations under this Agreement or any other
agreement between the Employee and the Company, where the Employee fails to cure such deficiency within ten (10) days after receipt of notice thereof (provided, however, that no notice shall be given in the event of a breach by the Employee, of
any of the restrictive covenants which are set forth in Section 9); 

  

	 	(c)	the Employee’s commission of any immoral act that would bring disrepute to LSI, the Company or the Business; 

  

	 	(d)	a material breach by the Employee of his duties towards the Company or its Affiliates, where the Employee fails to cure such deficiency in all material respects within ten
(10) days after receipt of notice thereof; 

  

	 	(e)	theft, fraud, embezzlement from the Company or its Affiliates or any other material act of dishonesty relating to the Employee’s employment; 

  

	 	(f)	gross negligence or willful misconduct or fraud by the Employee in the performance of his duties; and 

  

	 	(g)	any other matter which, pursuant to applicable law, constitutes serious reason for termination without either notice or payment in lieu of notice. 

  

	 	10.2	Termination of Agreement for Cause. 

 The Company
may terminate this Agreement for Cause, upon simple notice from the Company to the Employee, without providing the Employee other notice, severance pay, pay in lieu of notice, or any indemnity whatsoever, except as may otherwise be required by
applicable law. 
  

	 	10.3	Termination of Agreement Without Cause. 

 The
Company may terminate this Agreement without Cause at any time upon written notice, provided the Company shall be obligated to the Employee, at its election, either (a) continue to pay the Employee the Employee’s base salary payable in
accordance with the normal payroll practices of the Company for the remainder of the then current Term, or (b) provide the Employee with a lump sum payment representing the Employee’s then monthly base salary, less deductions required to
be withheld by law, for the remainder of the then current Term. In exchange for this payment, the Employee undertakes to execute a full and complete release of all claims against the Company, its Affiliates and their employees, officers, directors,
agents and shareholders, in a form to be determined by the Company, the whole at the Company’s sole discretion. 

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	 	10.4	Termination of Agreement Due to Death of the Employee. 

 This Agreement shall automatically terminate on the death of the Employee and the Company shall have no further obligations to the Employee or to the Employee’ estate pursuant to this Agreement. Any entitlements under this Agreement or
otherwise accrued by the Employee at the time of the Employee’s death not yet paid to the Employee will be paid to the appropriate legal designate of the Employee. 
 11. NOTICES 
 The parties agree that any notice to be given pursuant to this Agreement, shall be deemed to have
been adequately given if such notice is (a) mailed by prepaid, registered post to the party for whom the notice is intended, (b) delivered personally, (c) sent by an internationally recognized overnight courier service with next day
delivery guaranteed and delivery charges prepaid, to the following address: 
 To the Company: 
 LSI Industries 
 10000 Alliance Road

 Cincinnati, Ohio 45242 
 Attention: Ronald S. Stowell 
 With a required copy to: 
 Keating Muething Klekamp PLL 
 One East Fourth
Street, Suite 1400 
 Cincinnati, Ohio 45202 
 Attention: Paul V. Muething 
 To the Employee: 
 Fred Jalbout 
 260 Strathcona 
 Mont-Royal, QC 
 H3R 1E7 
 With a required copy to: 
 Davies Ward
Phillips & Vineberg LLP 
 1501 McGill College Avenue, 26th Floor 
 Montreal, Canada H3A 3N9 
 Attention: Denis Ferland 

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 12. GENERAL 
  

	 	12.1	If any part or parts of this Agreement shall be held illegal or null and void by any Court or administrative body of competent jurisdiction, such determination shall not affect the
remaining parts of this Agreement and they shall remain in full force and effect as if such part of parts determined illegal or void had not been included in the Agreement. 

  

	 	12.2	All dollar amounts referred to in this Agreement, unless otherwise specified, are in Canadian funds. 

  

	 	12.3	All payments in this Agreement will be subject to applicable income tax and other deductions normally made by the Company and required by law. 

  

	 	12.4	This Agreement shall be governed and construed under and in accordance with the laws of the Province of Quebec. 

  

	 	12.5	This Agreement may not be modified or amended except by instrument in writing signed by the parties to this Agreement. 

  

	 	12.6	Any party to this Agreement may change its address for notice set out in Section 11 in this Agreement by notice of the change of address to the other party.

  

	 	12.7	This Agreement is personal to the Employee and shall not be assigned by him. The Employee shall not hypothecate, delegate, encumber, alienate, transfer, or otherwise dispose of the
Employee’s rights and duties under this Agreement. The Company may assign this Agreement without the Employee’s consent to any other entity and on such assignment, the provisions of this Agreement applicable to the Company shall be
construed as being applicable to the entity to which this Agreement has been assigned. This Agreement shall enure to the benefit of and be binding on the successors and permitted assigns of the Company. 

  

	 	12.8	Waiver of any breach of this Agreement is not a waiver of any subsequent breach of this Agreement, nor is any forbearance to seek a remedy for any breach a waiver of any rights and
remedies with respect to any subsequent breach. 

  

	 	12.9	If any clause, section, phrase, provision, or portion of this Agreement or its application to any person or circumstance shall be held invalid or unenforceable under any applicable
law, such event shall not affect or render invalid or unenforceable the remainder of this Agreement and shall not affect the application of any clause, provision, or portion to other persons or circumstances. 

  

	 	12.10	The Employee agrees that Sections 8 and 9 of this Agreement shall survive any change, modification, or alteration to any of the terms of the Employee’s employment as well
as the termination of the Employee’s employment for any reason whatsoever. 

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	 	12.11	The Employee acknowledges that he has had full opportunity to review and consider the content of this Agreement and to obtain adequate and independent legal advice with respect to
this Agreement, prior to its execution by the Employee. Further, the Employee acknowledges and represents that the Employee does execute this Agreement voluntarily with full knowledge of its terms and conditions. 

  

	 	12.12	The parties hereto acknowledge that they have requested and are satisfied that this Agreement and all related documents be drawn up in the English language. Les parties aux
présentes reconnaissent avoir requis que la présente entente et les documents qui y sont relatifs soient rédigés en anglais. 

 SIGNATURE PAGE TO FOLLOW. 

  

									
	 4349466 CANADA, INC.
	 		 	 FRED JALBOUT

					
	Per:	 	/s/ Ronald S. Stowell	 		 		 	/s/ Fred Jalbout
		 	Authorized Signatory	 		 		 	Fred Jalbout
					
		 		 		 		 	  
		 		 		 		 	WitnessLease Agreement

 Exhibit 10.4 
 LEASE AGREEMENT 
  

			
	BETWEEN:	  	3970957 Canada Inc., a corporation incorporated under the laws of Canada (the “Landlord”);
		
	AND:	  	4349466 Canada Inc., a corporation incorporated under the laws of Canada, which immediately after the Commencement Date shall be renamed LSI Saco Technologies Inc. (the
“Tenant”).

  

	1.	LEASED PREMISES 

  

	1.1	By these presents, the Landlord leases to the Tenant and the Tenant accepts to lease from the Landlord (the present agreement being hereinafter referred to as the
“Lease”), under the terms and conditions hereinafter provided, premises (the “Leased Premises”) composed of approximately thirty-one thousand nine hundred (31,900) square feet, bearing civic numbers 7809 and
7815 Trans Canada Highway, City of Montréal (Borough of Saint-Laurent), Province of Québec, H4S 1L3 (the “Building”), erected on the Land described as lot one million one hundred sixty-four thousand two hundred and
thirty-six (1,164,236) of the Cadastre du Québec, Registration Division of Montréal (the “Land”), the Land and the Building erected thereon are hereinafter referred to as the “Property”)
, the whole as the Leased Premises are more fully outlined in red on Schedule “A” attached hereto. 

  

	1.2	The area of the Leased Premises is to be measured prior to the Commencement Date by an architect appointed by the Landlord, at its sole expense, in accordance with the National
Association of Building Owners and Managers Standard Method of Floor Measurement as approved in June 7, 1996. Such measurement shall be final an binding all parties. 

  

	2.	TERM 

  

	2.1	The term of the Lease shall be for three (3) years (such initial term is hereinafter referred to the “Initial Term” and the Initial Term and any renewal
thereof is hereinafter referred to as the “Term”) commencing on June 26, 2006 (herein the “Commencement Date”) and ending on June 26, 2009. 

  

	2.2	Provided the Tenant is not in material default under the Lease, the Tenant shall have three (3) options to renew the Term for an additional period of three (3) years each,
upon prior written notice to the Landlord of its intention to renew the Lease not less than six (6) months prior to the expiration of the Term, on the same terms and conditions as are contained in this Lease, except that (i) there will be
no further option to renew (other than the options contemplated herein) and (ii) the Minimum Rent (as such term is defined 

 hereunder) shall be adjusted, for the first, second and third renewal period, based upon the percentage
difference in the CPI (as such term is defined hereunder) between (a) the CPI on the day of the beginning of the then current three (3) year period Term and (b) the CPI on the day that is three (3) months prior to the date of the
exercise of the Tenant’s right to renew the Term. 
  

	2.3	For the purpose of this Section, “CPI” means the Consumer Price Index (all items) for the region of Montréal as published by Statistics Canada or any successor body
or, in the absence of such index or successor body, the index most closely corresponding thereto, subject to appropriate adjustments if the method of calculation or basis of comparison differs. 

  

	3.	NET RENTAL 

  

	3.1	In consideration of the rental of the Leased Premises, the Tenant covenants and agrees to pay to the Landlord throughout the Term, the sum of CAD$16,615.66 per month, payable in
advance on the first day of each month (the “Minimum Rent”) (as determined to be the market rental value of such property pursuant to the summary report attached hereto as Exhibit A). In the event that the first day or the last day
of the Term is not the first or the last day of a calendar month, as the case may be, the Minimum Rent shall be calculated on a “per diem” basis for those months. All payments will be payable to the Landlord in Canadian Dollars, at its
offices located at 260 Strathcona; Mont-Royal, QC; H3R 1E7, or at any other location or to any other person that the Landlord may from time to time reasonably request in writing. 

  

	3.2	It is the intention of the parties and the Tenant acknowledges that the Minimum Rent is entirely “net” to the landlord, and the Tenant shall be responsible for all costs,
charges or expenses of any kind whatsoever arising from or relating to the Leased Premises, the contents thereof or the business carried on therein or thereon and the Lessee shall pay all such costs, charges and expenses to the Landlord’s
complete and entire exoneration. Any cost, charge or expense contemplated herein paid or payable by the Tenant and which is recovered by the Landlord under or in respect of any insurance policy, legal or contractual warranty or guaranty or claim for
damages or indemnification against a third person shall be reimbursed to the Tenant. 

  

	3.3	In addition to the Minimum Rent, throughout the term, the Tenant shall pay the following: 

  

	 	(a)	all real estate taxes, rates, duties, assessments and other charges that are levied, rated, charged or assessed against or in respect of the Leased Premises and all improvements,
equipment and facilities of the Tenant on or in the Leased Premises or any part thereof; 

  

	 	(b)	every tax and license fee which is levied, rated, charged or assessed against or in respect of every business carried on in the Leased Premises or in respect of the use or occupancy
thereof or any part of the Leased Premises by the Tenant; and 

  

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	 	(c)	the full amount of any taxes in the nature of a business transfer tax, value added tax, sales tax or any other tax levied, rated, charged or assessed against the Landlord or the
Tenant in respect of the Rent (as such term is defined hereunder) payable by the Tenant under this Lease or in respect of the rental of space under this Lease, whether characterized as a goods and services tax, sales tax, value added tax, business
transfer tax or otherwise. 

 Taxes payable pursuant to paragraphs (i) and (ii) shall be paid by the Tenant to the
lawful taxing authority when due, and within thirty (30) days of written request of the Landlord Tenant shall produce evidence of such payment to the Landlord. Taxes payable pursuant to paragraph (iii) shall be paid to the Landlord at the
time required by applicable Law (as such term is defined hereunder). Without limiting the generality of the foregoing, the Tenant shall be solely responsible for and pay the Goods and Services Tax (GST) and Quebec Sales Tax (QST) payable on the
Minimum Rent referred to in Section 3.1 above and any Additional Rent, as well as any new (future) business tax that might be levied by any taxing authority, and which business tax would normally be paid by a tenant during the Term of the
Lease, and any capital tax pursuant to any taxation legislation, payable by the Landlord with respect to the Property. Notwithstanding anything in this Lease to the contrary, Tenant shall not have any obligation to pay Landlord’s federal and
provincial income and other taxes, nor shall they include any taxes on capital or large corporations’ taxes not related to the ownership by the Landlord of the Property. 
 Throughout the Term, Tenant shall be entitled, at its expense to contest or appeal the levy or imposition of any tax for which Tenant is obligated under
this Lease and any evaluation imposed with respect thereto provided such contestation or appeal is prosecuted in good faith and with reasonable diligence. Tenant may settle, compromise, consent to, waive or otherwise determine at its sole discretion
all matters and things relating to such contestation or appeal. If Tenant withholds payment of any taxes (which Tenant shall only do if so permitted by law), Tenant shall give the Landlord and its hypothecate creditors, if any, such security and
undertaking as they reasonable request to ensure that Tenant will pay such taxes and Tenant will indemnify and hold Landlord harmless from any costs, expenses, prosecutions, fines or other liabilities in respect to such contestations or appeals.
Tenant may file contestations or appeals in Tenant’s own name, or in the name of the Landlord, should this be necessary, and Landlord agrees to execute, at the reasonable request of Tenant and at Tenant’s expense all necessary deeds and
documents for the purpose thereof. Tenant shall keep landlord fully informed as to the status of any contestations or appeals. 
  

	3.4	The Tenant shall pay all costs, charges and expenses of every kind relating to the Leased Premises, and the repair, replacement, operation and management of the Leased Premises,
including without limitation and by way of example only, roof replacements, entire mechanical repairs and replacements (including heating, and air conditioning systems), structural repairs, repairs to foundations and bearing walls and all other
repairs and replacements both minor and major repairs, which are from time to time required to be made to the Leased Premises, as a reasonable owner who himself owns or occupies the Leased Premises for the purposes contemplated in this Lease would
do. In addition, the Tenant shall be solely responsible for utilities, water taxes, heating costs, exterior and 

  

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 interior maintenance, and all other charges in respect of the Leased Premises. The Tenant shall pay as
and when due all water taxes, business tax and similar rates and taxes which may be levies or imposed upon the Leased Premises or upon the business carried on therein as well as any other rates or taxes which may be payable by the Tenant as tenant
or occupant thereof. If the mode of collecting such taxes be so altered as to make the Landlord liable therefore instead of the Tenant, the Landlord will pay such accounts and Tenant will repay those as additional rent on demand the amounts so paid.

  

	3.5	The Tenant shall pay the costs of all utilities consumed or used within the Leased Premises including without limitation, the cost of water, gas electricity, fuel and/or other
energy. Such utilities shall be separately metered and paid by the Tenant directly to their supplier. The Tenant shall for the costs of all fittings, machines, meters or other things leased in respect thereof and for all works and services performed
by any corporation in commission in connection with any such utilities. 

  

	3.6	All sums and amounts payable by the Tenant to the Landlord pursuant to this Lease other than Minimum Rent shall constitute an “Additional Rent”. The Minimum Rent
and any Additional Rent payable are herein collectively referred to as the “Rent”. 

  

	4.	USE OF LEASED PREMISES 

  

	4.1	The Tenant shall use and occupy the Leased Premises for the purposes of manufacture and assembly of video screens, offices, warehousing and shipping, and for any other legal
purpose. 

  

	5.	ASSIGNMENT AND SUBLETTING 

  

	5.1	The Tenant may not assign or transfer this Lease or sublet the Leased Premises or a part thereof, or permit the use by a third party, (individually, a “Transfer”)
without having beforehand obtained the written consent of the Landlord, which consent may not be unreasonably withheld. 

  

	5.2	Notwithstanding the foregoing, the Tenant shall be entitled to Transfer in whole or in part the Lease or the Leased Premises, as the case may be, without having to obtain the
Landlord’s consent (but upon notice as hereinafter provided), in the case of any Transfer to a transferee who is an entity: 

  

	 	(a)	affiliated to the Tenant; provided that if the transferee ceases to be an entity affiliated to the Tenant, then on the day of such event, a Transfer shall be deemed to have occurred
for which the Landlord’s consent shall be required as per the terms of Section 5.1; or 

  

	 	(b)	acquiring all or substantially all the assets of the Tenant; 

 (said transferee is referred to as a “Permitted Transferee” and said Transfer is referred to as a “Permitted Transfer”). 
  

 - 4 - 

 For the purpose of this Section 5, an “entity affiliated to the Tenant” means, with
respect to any specified entity, an entity that directly or indirectly controls, is controlled by, or is under common control with, the Tenant, its partners or shareholders. For purpose of this definition, “control,” when used in
connection with any specified entity, means the power to direct the management or policies of such entity, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise. 
 The Tenant must notify the Landlord in writing that a Permitted Transfer has taken place no later than twenty (20) days after the effective date of
the Permitted Transfer and provide the Landlord with evidence satisfactory to the Landlord, acting reasonably, that the Transfer is a Permitted Transfer. 
 The Tenant and the Permitted Transferee shall promptly execute after the effective date of the Permitted Transfer an agreement in writing, pursuant to which the Permitted Transferee agrees to be bound by the terms and
conditions of the Lease, to the extent related to the Permitted Transfer. 
 In all cases, the Tenant shall continue to be bound by this Lease
as a solidary debtor, notwithstanding any Transfer or Permitted Transfer, and notwithstanding the Landlord’s consent, unless the Landlord has expressly agreed otherwise in writing. 
  

	5.3	If Landlord shall sell, assign or transfer (a “Landlord Transfer”) all or any part of its interest in the Property, in the Leased Premises or in the Lease to a
successor in interest which expressly assumes in writing the obligations of Landlord hereunder, from and after the date of such Landlord Transfer, the Landlord shall thereupon be released or discharged from all covenants and obligations which
thereafter arise hereunder, and Tenant shall look solely to such successor in interest for performance of all such obligations of Landlord from and after the date of such Landlord Transfer. 

  

	6.	ACCESS TO LEASED PREMISES 

  

	6.1	The Landlord, its agents and representatives may enter the Leased Premises during normal business hours of a business day to make such verification of the condition of the Leased
Premises or to make maintenance and repair work if necessary. The Landlord will be required to notify the Tenant by giving the Tenant at least a business day prior notice, except in emergency cases in which case no notice shall be required. An
“emergency case” shall be an instance in which the Landlord has reason to reasonably believe that there is imminent danger of harm to human life or physical property. The Landlord and its agents and representatives shall conduct such
inspections and repairs in a manner so as not to unreasonably disturb the Tenant’s use and enjoyment of the Leased Premises. 

  

	7.	REPRESENTATIONS AND WARRANTIES 

  

	7.1	Landlord has good, valid and marketable title to all of the Leased Premises, free and clear of any Liens. All of the Leased Premises and the buildings located thereon are in
material compliance with applicable zoning laws and regulations. The Leased Premises and the structures and buildings owned or leased by the Landlord, and the mechanical components (including HVAC systems), roofs, fixtures and equipment located
therein or 

  

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 thereon, are, as of the Commencement Date, in good operating condition and repair, subject only to normal
maintenance and repair, fit for the uses for which they are intended, and no necessary repairs will need to be made as of the Commencement Date to continue the use of such buildings and structures as presently used. There are no outstanding options,
rights of first refusal to purchase any of the Leased Premises, and there are no leases, subleases, licenses, or other agreements granting to any party or parties the right of use or occupancy of any portion of the Leased Premises. 
  

	8.	COMPLIANCE WITH RULES, LAWS AND INDEMNIFICATION 

  

	8.1	The Landlord and Tenant shall comply with all Laws, including Environmental Laws, governing the business conducted in the Leased Premises. 

  

	8.2	Tenant shall indemnify and hold harmless Landlord and its successors, assigns and heirs from and against any and all claims, liabilities and losses arising from Tenant’s use or
occupancy of the Leased Premises, or from the conduct of Tenant’s business, or from any activity, work, or things done, permitted or suffered by Tenant in or about the Premises and shall further indemnify and hold harmless Landlord from and
against any and all claims, liabilities, and losses arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any negligence of the Tenant, or any of
the Tenant’s agents, contractors, or employees, and from and against all costs, attorneys’ fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding to be brought against Landlord by reason of any
such claim. Tenant, upon notice from Landlord, shall defend the same at Tenant’s expense by counsel reasonably satisfactory to Landlord. 

  

	8.3	Landlord shall indemnify and hold harmless Tenant and its successors, assigns and heirs from and against any and all claims, liabilities, and losses arising from any breach or
default in the performance of any obligation on Landlord’s part to be performed under the terms of this Lease, or arising from any negligence of the Landlord, or any of the Landlord’s agents, contractors, or employees, and from and against
all costs, attorneys’ fees, expenses and liabilities incurred in the defense of any such claim or any action or proceeding to be brought against Tenant by reason of any such claim. Landlord, upon notice from Tenant, shall defend the same at
Landlord’s expense by counsel reasonably satisfactory to Tenant. 

  

	8.4	The following terms have the following meaning: 

  

	 	(a)	“Environment” means all components of the earth, including air (and all layers of the atmosphere), land (and all surface and subsurface soil, underground spaces and
cavities and all land submerged under water) and water (and all surface and underground water), organic and inorganic matter and living organisms and any sewer system. For greater certainty, the interacting natural systems that include components
referred to above are included in the definition of “Environment”; 

  

	 	(b)	“Environmental Laws” means Laws relating to public health and safety, pollution or the protection of the Environment; 

  

 - 6 - 

	 	(c)	“Laws” means (i) all laws, statutes, codes, ordinances, decrees, rules, regulations and municipal by-laws; (ii) all judgments, orders, writs, injunctions,
decisions, rulings, decrees, directions, instructions, penalties, sanctions and awards of any Governmental Entity; and (iii) all policies, practices and guidelines of, or contracts with, any Governmental Entity which, although not actually
having the force of law, are considered by such Governmental Entity as requiring compliance as if having the force of law, in each case binding on or affecting the Party or Person referred to in the context in which such word is used.

  

	9.	INSURANCE 

  

	9.1	The Tenant shall, at its expense, maintain in force during the Term in the names of the Tenant, the Landlord and the Landlord’s mortgagee, if any, the following insurance:

  

	 	(a)	comprehensive general liability insurance against claims for personal injury, death or property damage arising out of all operations of the Tenant, (including Tenants’ legal
liability, personal liability and property damage) with respect to the business carried, on in and from the Leased Premises; and 

  

	 	(b)	property insurance covering loss or damage to the Leased Premises, in the amount of the full replacement value thereof, as the same may exist from time to time, which replacement
value is now estimated to be CAD$2,250,000 but in no event less than the total amount required by lenders having liens on the Leased Premises, against all perils included within the classification of fire, extended coverage, vandalism, malicious
mischief, flood (in the event same is required by lender having a lien on the Leased Premises), and special extended perils (“all risk” as such term is used in the insurance industry). 

  

	9.2	Without limiting the generality of the foregoing, Tenant shall use its commercially reasonable best efforts to ensure that Tenant’s policies of insurance required to be
maintained in force pursuant to Section 9.1 contain the following clauses: 

  

	 	(a)	a waiver of any subrogation rights which Tenant’s insurers may have against Landlord and its creditors and/or against those for whom Landlord is responsible in law;

  

	 	(b)	with respect to the general liability insurance policy, a severability of interests clause and a cross-liability clause; 

  

	 	(c)	a clause stating that Tenant’s insurance policy will be considered as primary insurance and shall not call into contribution any other insurance that may be available to
Landlord or to its creditors; and 

  

	 	(d)	a joint loss endorsement or agreement, where applicable. 

 The Tenant agrees to furnish upon request from the Landlord verification of compliance with the provisions of this Section 9.1. 
  

 - 7 - 

	10.	DEFAULT BY TENANT 

  

	10.1	An “Event of Default” will be considered to have occurred when any one of the following happens: 

  

	 	(a)	the Tenant fails to pay the Rent hereby reserved or any part thereof on the day appointed for payment thereof, and does not cure such default within ten (10) days after receipt
of written notice thereof from the Landlord; 

  

	 	(b)	the Tenant shall have breached or failed to comply with any of its covenants and agreements contained in this Lease (save for non-payment of Rent) and shall have failed to commence
diligently to remedy such breach or non-compliance within fifteen (15) business days and failed to have fully remedied the breach or non-compliance within thirty (30) days (or such longer period as the Landlord may reasonably determine,
having regard to the nature of the default) after written notice thereof given by the Landlord to the Tenant; 

  

	 	(c)	the Tenant shall make any assignment for the benefit of creditors or become bankrupt or insolvent or take the benefit of any act now or hereinafter in force for bankrupt or
insolvent debtors; 

  

	 	(d)	the Tenant is a corporation and any order shall be made for the winding up of the Tenant or other termination of the corporate existence of the Tenant; 

  

	 	(e)	a trustee, receiver, interim receiver, receiver and manager, custodian or liquidator is appointed for the business, property, affairs, or revenue of the Tenant;

  

	 	(f)	this Lease or any of the Tenant’s assets on the Leased Premises are taken or seized under writ of execution, an assignment, pledge, charge, debenture or other security
instrument. 

  

	10.2	Each time that an Event of Default occurs, in addition to the other rights and recourses which are granted to the Landlord pursuant to the Lease or at law, the Landlord shall have
the following rights and remedies, which shall be cumulative and not alternative: 

  

	 	(a)	the right to terminate the Lease by notice to the Tenant; 

  

	 	(b)	the right to remedy or attempt to remedy, at the expense of the Tenant any default of the Tenant pursuant to the Lease on behalf of the Tenant and to enter the Leased Premises for
such purposes; 

  

	 	(c)	the right to recover from the Tenant all damages suffered as well as all expenses incurred by the Landlord pursuant to the default of the Tenant; and 

  

	 	(d)	if the resiliation of the Lease results from or is based on the bankruptcy or the insolvency, the right to recover from the Tenant the full amount of Rent for a period of three
(3) months prior to the bankruptcy as well as Rent for the three (3) months following. 

  

 - 8 - 

	11.	RIGHT OF FIRST REFUSAL 

  

	11.1	If, at any time during the Term and provided that the Tenant is not in material default under the Lease, the Landlord receives an offer from a third party with which it deals at
arm’s length within the meaning of the Income Tax Act (Canada) (the “Acquiror”) to purchase the Property (the “Offer”), which it is prepared to accept, the Landlord shall transmit to the Tenant, no later
than five (5) business days after its receipt, a copy of said Offer. 

  

	11.2	The Tenant shall have twenty-one (21) days from the receipt of the notice given by the Landlord accompanied with the relevant documents within which to indicate in writing to
the Landlord whether or not it intends to purchase the Property, at the price and under the same terms and conditions provided in the Offer (the “Response”). 

  

	11.3	Should the Tenant fail to give a written Response to the Landlord within the prescribed delay of twenty-one (21) days of its intention to purchase the Property, the Tenant
shall be deemed to have refused to purchase the Property, and the Landlord shall have the right to sell the Property to the Acquiror at the price and under the same terms and conditions provided in the Offer no later than within sixty (60) days
following (i) the Tenant’s written refusal to exercise its right of first refusal contemplated herein (the “Right of First Refusal”), or (ii) the expiry of the said delay of thirty (30) days. If the Landlord
fails to finalize the sale of the Property within such delay, any sale envisaged after such period of sixty (60) days shall be subject to the Right of First Refusal provided for herein. 

  

	11.4	The Landlord may not accept an Offer unless the Acquiror agrees to assume the Landlord’s obligations during the Term of the Lease. The Offer shall not contain any other
consideration that is not solely in relation to the transfer of the Leased Premises. 

  

	11.5	Without limiting the generality of the foregoing, the Landlord shall notify the Tenant if, at any time during the Term, it has the intention of selling the Property prior to giving
effect to such intention to sale. 

  

	12.	OPTION TO PURCHASE 

  

	12.1	The Landlord hereby grants to the Tenant an exclusive option to purchase all of the Landlord’s rights, title and interest in and to the Property at its fair market value (the
“Option”) to be exercised by the Tenant at any time during the Term of this Lease. Such sale of the Property to the Tenant shall be made with legal warranty as to ownership only. 

  

	12.2	The fair market value of the Property shall be established and said purchase process shall be conducted in the following manner: 

  

	 	(a)	concurrently with the delivery by the Tenant of the written notice advising the Landlord of its intention to exercise the Option, the Tenant shall submit to the Landlord by written
notice, (i) a list of five (5) qualified real estate appraisers 

  

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 experienced in the appraisal (in accordance with the then current appraisal standards accepted by
Canadian real estate institutional investors and lenders) of properties of a size and nature comparable to the Property, and (ii) its appraisal (the “Initial Appraisal”) of the prevailing fair market value for the Property;

  

	 	(b)	within ten (10) business days of its receipt of the Initial Appraisal, the Landlord shall either (i) accept the fair market value contained in the Initial Appraisal, or
(ii) submit to the Tenant by written notice, (a) its own list of five (5) appraisers meeting the above-listed requirements, and (b) its own appraisal of the fair market value for the Property (the “Appraisal of the
Landlord”); failure of the Landlord to either accept the Initial Appraisal or submit its own list of appraisers and its Appraisal of the Landlord within the delay herein provided shall be deemed to be a rejection of the Initial Appraisal as
being the proper fair market value for the Property; and 

  

	 	(c)	the first appraiser appearing on both lists shall be appointed by any party hereto as an arbitrator with an irrevocable mandate to select, within twenty (20) days of his (her)
appointment, either the Initial Appraisal or the Appraisal of the Landlord as being the one which is the closest to his (her) own opinion of the fair market value for the Property; the appraisal chosen by said arbitrator shall constitute the
applicable fair market value and shall be final, binding and not subject to any appeal; if no appraiser appears on both lists and the parties cannot jointly appoint an appraiser for the purpose of this Section, any of the parties may request the
appropriate Court of the judicial district of Montreal, Canada, to nominate such an appraiser. 

  

	12.3	If Tenant exercises the Option and the terms of Section 12.2 are properly complied with by the Tenant, the Landlord shall convey marketable title to the Property to Tenant or
Tenant’s designee by deed of sale before the Tenant’s notary, free, clear and unencumbered as of closing, except restrictions and easements of record and current real estate taxes on or before the later of (a) thirty (30) days
after the exercise of the Option or (b) ten (10) days after the determination of the fair market value in accordance with Section 12.2, at such exact date, time, and location in Montreal, Quebec, as shall be agreed to between Landlord
and Tenant at least two (2) days prior to such date. Simultaneously with closing of the purchase and sale of the Property, Landlord agrees to assign and transfer to Tenant all of its right, title and interest in and to the this Lease, as then
in effect, and Tenant agrees to assume all of Landlord’s obligations thereunder. If for any reason the closing of the sale of the Property cannot take place on or before the last day of the Term, the Term shall be deemed to be renewed up and
until the effective date of the sale. 

  

	13.	MISCELLANEOUS 

 Any notice, request, demand,
waiver, consent, approval or other communication which is required or permitted hereunder shall be in writing and shall be deemed given only if (i) delivered personally, (ii) sent by registered or certified mail, postage prepaid,
(iii) sent by confirmed facsimile with the original to follow by first class mail, postage prepaid, (iv) sent by 
  

 - 10 - 

 an internationally recognized overnight courier service with next day delivery guaranteed and delivery charges prepaid,
as follows: 
  

	 	(i)	If to the Tenant, at: 

 LSI Industries Inc. 

P.O. Box 42728 
 10000 Alliance Road

 Cincinnati, Ohio 45242 
 Attention: Ronald S. Stowell 
 Facsimile No.: (513) 791-0813 
 With a required copy to: 
 Keating
Muething & Klekamp PLL 
 One East Fourth Street, Suite 1400 
 Cincinnati, Ohio 45202 
 Attention: Paul V.
Muething 
 Facsimile No.: (513) 579-6457 
 and: 
 Stikeman Elliott LLP 
 1155 René-Lévesque Blvd. West 
 Suite 4000 
 Montreal, Québec 
 H3B 3V2

 Attention: William Rosenberg 
 Facsimile: (514) 397-3599 
  

	 	(ii)	If to the Landlord, at: 

 260 Strathcona 
 Mont-Royal, QC 
 H3R 1E7 
 Attention: Fred Jalbout 
 Facsimile:
(514) 745-1299 
 With a required copy to: 
 Davies Ward Phillips & Vineberg LLP 
 1501 McGill College Avenue 
 26th Floor

 Montreal, Québec 
 H3A
3N9 
 Attention:     Denis Ferland 
 Facsimile:     (514) 841-6499 
  

 - 11 - 

 or to such other address as the addressee may have specified in a notice duly given to the sender as provided herein.
Such notice, request, demand, waiver, consent, approval or other communication will be deemed to have been given as of the date so delivered, mailed or received by facsimile transmission. 
  

	13.1	This Lease may only be amended, supplemented or otherwise modified by written agreement signed by all parties. 

  

	13.2	No waiver of any of the provisions of this Lease shall be deemed to constitute a waiver of any other provision (whether or not similar) or a future waiver of the same provisions,
nor shall such waiver be binding unless executed in writing by the party to be bound by the waiver. No failure on the part of any party to exercise, and no delay in exercising any right under this Lease shall operate as a waiver of such right; nor
shall any single or partial exercise of any such right preclude any other or further exercise of such right or the exercise of any other right. 

  

	13.3	This Lease constitutes the entire agreement between the parties with respect to the Leasing of the Leased Premises and supersedes all prior agreements, understandings, negotiations
and discussions, whether oral or written, of the parties. 

  

	13.4	This Lease shall be binding upon and ensure to the benefit of the parties and their respective successors and permitted assigns. 

  

	13.5	This Lease shall be governed by and interpreted and enforced in accordance with the Laws of the Province of Québec and the federal Laws of Canada applicable therein.

  

	13.6	The parties hereto have requested that this Lease, its extension(s), amendment(s) as well as any notice, document, or proceeding relating to same be drawn up in English; Les
parties aux présentes ont requis que le présent Bail, son(ses) renouvellement(s), amendement(s) ainsi que tout autre avis, documents ou procédures s’y rapportant soient rédigés en Anglais.

  

 - 12 - 

 IN WITNESS WHEREOF the parties hereto have executed this Lease Agreement on
June 26, 2006. 
  

			
	3970957 CANADA INC.
		
	Per:	 	 /s/ Fred Jalbout
  

	 Name:
 Title:
	 	 Fred Jalbout
 President

	
	4349466 CANADA INC.
		
	Per:	 	 /s/ Fred Jalbout
  

	 Name:
 Title:
	 	 Fred Jalbout
 President

  

 - 13 -

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