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&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0"&gt;&lt;b&gt;NOTE&amp;#160;9 &amp;#150; INCENTIVE FROM LESSOR&lt;/b&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Landlord construction contributions
usually take the form of up-front cash. &amp;#160;Depending on the specifics of the leased space and the lease agreement, amounts paid
for structural components are recorded during the construction period as leasehold improvements or the landlord construction contributions
are recorded as an incentive from lessor. &amp;#160;The incentive from lessor is amortized over the life of the lease which is 10 years.
&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company received $590,000 from the
Company&amp;#146;s landlords as construction contributions pursuant to agreed-upon terms in its lease agreement with Westfield Century
City. &amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;As of June 30, 2013, the Company received
a total of $403,750 from the landlords as construction contributions related to the Topanga lease.&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;Amortization of the incentive from lessor
was $15,475 and $25,540 for the three and six months ended June 30, 2013, and $14,506 and $24,507 for the three and six months
ended June 30, 2012. &amp;#160;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in"&gt;&lt;font style="background-color: white"&gt;&amp;#160;&lt;/font&gt;&lt;/p&gt;

&lt;p style="font: 10pt/normal Times New Roman, Times, Serif; margin: 0; text-align: justify"&gt;The Company is currently building out
its new Glendale, CA location. &amp;#160;Through June 30, 2013, the Company received $166,250 from the Company&amp;#146;s landlord as
construction contributions pursuant to agreed-upon terms in its lease agreement with Glendale II Mall Associates, LLC to lease
approximately 5,900 square feet in the Westfield Glendale Galleria Shopping Center. A total of $166,250 of the $475,000 was received
in the current quarter and an additional $166,250 is anticipated in the third quarter of 2013.&lt;/p&gt;</NonNumbericText><FootnoteIndexer /><CurrencyCode /><CurrencySymbol /><IsIndependantCurrency>false</IsIndependantCurrency><ShowCurrencySymbol>false</ShowCurrencySymbol><DisplayDateInUSFormat>false</DisplayDateInUSFormat></Cell></Cells><ElementDataType>nonnum:textBlockItemType</ElementDataType><SimpleDataType>na</SimpleDataType><ElementDefenition>Incentive From Lessor Disclosure Text Block</ElementDefenition><ElementReferences>No definition available.</ElementReferences><IsTotalLabel>false</IsTotalLabel><UnitID>0</UnitID><Label>Incentive From Lessor</Label></Row></Rows><Footnotes /><IsEquityReport>false</IsEquityReport><ReportName>Incentive From Lessor</ReportName><MonetaryRoundingLevel>UnKnown</MonetaryRoundingLevel><SharesRoundingLevel>UnKnown</SharesRoundingLevel><PerShareRoundingLevel>UnKnown</PerShareRoundingLevel><ExchangeRateRoundingLevel>UnKnown</ExchangeRateRoundingLevel><HasCustomUnits>true</HasCustomUnits><IsEmbedReport>false</IsEmbedReport><IsMultiCurrency>false</IsMultiCurrency><ReportType>Sheet</ReportType><RoleURI>http://gigglesnhugs.com/role/IncentiveFromLessor</RoleURI><NumberOfCols>1</NumberOfCols><NumberOfRows>2</NumberOfRows></InstanceReport>
