Answers:

1. in whole at the end of the lease term

2. in equal parts over the next 36 months

3. in equal parts over the next 36 months

4. in whole at the beginning of the lease term

5. in equal parts over the next 16 months

To: accounting@sportingsupply.com Subject: Lease renewal Good morning, Yesterday I renewed our building lease for the next 3 years. I know we might move sooner than that, but it was cheaper this way. You mentioned that we only have the funds to operate for the next 16 months, but I'm confident things will look up soon. Thanks, Sheila Dawson CEO How should Sporting Supply recognize its building lease