SECTION 1 – REGISTRANT’S BUSINESS AND OPERATIONS

1.01 Entry into a Material Definitive Agreement.

On or about October 1, 2019, the Company entered into an office sublease agreement (hereinafter referred to as the “Lease Agreement”) with Winners Cycles, LLC, a Nevada limited liability company, whose business address of 7955 West Sahara Avenue, Suite 102, Las Vegas, Nevada 89117 (hereinafter referred to as the “Sublessor”). Pursuant to the Sublease Agreement, the Company subleased the commercial space located at 5031 Wagon Trail Avenue, Suite 102-106, Las Vegas, Nevada 89118 (hereinafter referred to as the “Office Space”). The Office Space consists of five different commercial suites which have been previously modified to be one contiguous office, showroom, and service center consisting of 8,954 square feet of rentable space. The Company paid to the Sublessor an initial deposit of $12,804.22 and has agreed to pay basic monthly rent of $8,506.30 plus monthly CAMS of $3,402.52 resulting in a full monthly payment of $11,908.82 to Sublessor with three annual rent abatements (e.g. November 2019, October 2020, and October 2021) whereby the Company only has to pay the CAMS for each particular monthly abatement of $3,402.52. The Lease Agreement terminates on July 22, 2022. The Company received approval for up to $15,000 in Office improvements to be paid for by the Sublessor. Additionally, according to section 2.3 of the Lease Agreement, if the Company is unable to get approval for a “Special Use Permit” (hereinafter referred to as the “SUP”) by Clark County, Department of Comprehensive Planning using commercially reasonable efforts, the Company will be allowed to terminate the Lease Agreement upon written notice of termination to the Sublessor which requires evidence of such denial of the SUP. If the Company terminates the Lease Agreement for denial of the SUP pursuant to the above subsection of the Lease Agreement, the Company will receive a refund of all monies paid to the Lessor to date and the parties to the Lease Agreement shall have no further obligations to each other.