**Exhibit 10.37**

**AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION**

**STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE—NET**

**(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)**

**1.       ****Basic Provisions (“Basic Provisions”).**

          1.1     **Parties:** This Lease (**“Lease”**), dated for reference purposes only, December 21, 2001, is made by and betweenEuclid Plaza, LLC a California limited liability company and President Properties, a California general partnership (**“Lessor”**) and Prolong Super Lubricants, a Nevada corporation (**“Lessee”**), (collectively the**“Parties,”** or individually a **“Party”**).

          1.2     **Premises:** That certainreal property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly known as 6 Thomas, Irvine, located in the County of Orange, State of California, and generally described as (describe brieflythe nature of the property and, If applicable, the **“Project”**, if the property is located within a Project) approximately 29,660 square foot, two-story, office/industrial building (“Premises”). (See also Paragraph2)

          1.3     **Term:** 5 years and 0 months (**“Original Term”**) commencing January 1, 2002(**“Commencement Date”**) and ending December 31, 2006 (**“Expiration Date”**). (See also Paragraph 3)

          1.4     **Early Possession:**  (**“Early Possession Date”**). (See also Paragraphs 3.2 and 3.3)

          1.5     **Base Rent:** $30, 500 per month (**“Base Rent”**), payable on the first day of each month commencing January2002. (See also Paragraph 4)

x If this box is checked, there are provisions in this **Lease for the Base Rent to be adjusted.**
          1.6     **Base Rent Paid Upon Execution:** $30, 500 as Base Rent for the period January 2002

          1.7     **Security Deposit:** $90,000 (**“Security Deposit”**). (See also Paragraph 5)

          1.8     **Agreed Use:** General office and warehousing of automotive appearance and lubricant products (See also Paragraph 6)

          1.9     **Insuring Party:**Lessor is the **“Insuring Party”** unless otherwise stated herein. (See alsoParagraph 8)

          1.10   **Real Estate Brokers:** (See also Paragraph 1*5)*

                    (a)  **Representation:** The following real estate brokers (collectively, the**“Brokers”**) and brokerage relationships exist in this transaction (check applicable boxes):

o N/A represents Lessor exclusively(**“Lessor’s Broker”**);
o N/A represents Lessee exclusively (**“Lessee’s Broker”**);
or o N/A represents both Lessor and Lessee (**“Dual Agency”**).
                    (b)  **Payment to Brokers:** Upon execution and delivery of this Lease by both Parties,Lessor shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no such agreement, the sum of ______ % of the total Base Rent for the brokerage services rendered by said Broker);

          1.11   **Guarantor.** The obligations of the Lessee under this Lease are to be guaranteed by _________________ (**“Guarantor”**). (Seealso Paragraph 37)

          1.12   **Addenda and Exhibits.** Attached hereto is an Addendum or Addenda consisting of Paragraphs50 through 53 and Exhibits all __________ of which constitute a part of this Lease.

**2.       ****Premises.  **         2.1     **Letting.** Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental, and uponall of the terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this Lease, or that may have been used in calculating rental, is an approximation which the Parties agree isreasonable and the rental based thereon is not subject to revision whether or not the actual size is more or less.          2.2     **Condition.** Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the EarlyPossession Date, whichever first occurs (**“Start Date”**), and, so long as the required service contracts described in Paragraph 7.1(b) below are obtained by Lessee within thirty (30) days following the Start Date, warrants that theexisting electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be ingood operating condition on said date and that the structural elements of the roof, bearing walls and foundation of any buildings on the Premises (the**“Building”**) shall be free of material defects. If a non-compliance with saidwarranty exists as of the Start Date, Lessor shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity thenature and extent of such noncompliance, rectify same at Lessor’s expense. If, after the Start Date, Lessee does not give Lessor written notice of any noncompliance with this warranty  within: (i) one year as to the surface of the roof andthe structural portions of the roof, foundations and bearing walls, (ii) six (6) months as to the HVACsystems, (iii) thirty (30) days as to the remaining systems and other elements of the Building, correction of such noncompliance shall be theobligation of Lessee at Lessee’s sole cost and expense.          2.3     **Compliance.** Lessor warrants that theimprovements on the Premises comply with all applicable laws, covenants or restrictions of record, building codes, regulations and ordinances (**“Applicable Requirements”**) in effect on the Start Date. Said warranty does not apply tothe use to which Lessee will put the Premises or to any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the zoning is appropriate forLessee’s intended use, and acknowledges that past uses of the Premises may no longer be allowed, If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lesseesetting forth with specificity the nature and extent of such noncompliance, rectify the same at Lessor’s expense. If Lessee does not give Lessor written notice of a noncompliance with this warranty within six (6) months following the StartDate, correction of that noncompliance shall be the obligation of Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed (as opposed to being in existence at the Start Date which is addressed in Paragraph6.2(a) below) so as to require during the term of this Lease the construction of an addition to or an alteration of the Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Building(“Capital Expenditure”), Lessor and Lessee shall allocate the cost of such work as follows:

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                    (a)  Subject to Paragraph 2.3(c) below, if suchCapital Expenditures are required as a result of the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such CapitalExpenditure is required during the last two (2) years of this Lease and the cost thereof exceeds six (6) months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within ten (10) days after receipt ofLessee’s termination notice that Lessor has elected to pay the difference between the actual cost thereof and the amount equal to six (6) months’ Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of thePremises which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least ninety (90) days thereafter. Such termination date shall, however, in no event be earlier than the last day that Lesseecould legally utilize the Premises without commencing such Capital Expenditure.                    (b)  If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lesseeshall allocate the obligation to pay for such costs pursuant to the provisions of Paragraph 7.1(c); provided, however, that if such Capital Expenditure is required during the last two years of this Lease or if Lessor reasonably determines that it isnot economically feasible to pay its share thereof, Lessor shall have the option to terminate this Lease upon ninety (90) days prior written notice to Lessee unless Lessee notifies Lessor, In writing, within ten (10) days after receipt ofLessor’s termination notice that Lessee will pay for such Capital Expenditure, If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with interest,from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to finance Lessor’s share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee onan offset basis, Lessee shall have the right to terminate this Lease upon thirty (30) days written notice to Lessor.                    (c)  Notwithstanding the above, the provisions concerning Capital Expenditures are intended toapply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use, change in intensity of use, or modification to the Premisesthen, and in that event, Lessee shall be fully responsible for the cost thereof, and Lessee shall not have any right to terminate this Lease.          2.4     **Acknowledgements.**  Lessee acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy itself withrespect to the condition of the Premises (including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements), and their suitability for Lessee’s intendeduse; (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises; and (c) neither Lessor, Lessor’s agents, nor anyBroker has made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease.  In addition, Lessor acknowledges that: (a) Broker has made no representations, promises or warrantiesconcerning Lessee’s ability to honor the Lease or suitability to occupy the Premises; and (b) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.          2.5     **Lessee as Prior Owner/Occupant.** The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediatelyprior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work.**3.       ****Term.**          3.1     **Term.**  The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.          3.2     **Early Possession.** If Lessee totally or partially occupies the Premises prior to the Commencement Date, theobligation to pay Base Rent shall be abated for the period of such early possession. All other terms of this Lease (including, but not limited to, the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall,however, be in effect during such period. Any such early possession shall not affect the Expiration Date.          3.3     **Delay in Possession.** Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises toLessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not, however,be obligated to pay Rent or perform its other obligations until it receives possession of the Premises.  If possession is not delivered within sixty (60) days after the Commencement Date, Lessee may, at its option, by notice in writing withinten (10) days after the end of such sixty (60) day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder. If such written notice is not received by Lessor within said ten (10) day period,Lessee’s right to cancel shall terminate.  Except as otherwise provided, if possession is not tendered to Lessee by the Start Date and Lessee does not terminate this Lease, as aforesaid, any period of rent abatement that Lessee wouldotherwise have enjoyed shall run from the date of delivery of possession and continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused by the acts or omissions of Lessee. Ifpossession of the Premises is not delivered within four (4)months after the Commencement Date, this Lease shall terminate unless other agreements are reached between Lessor and Lessee, in writing.          3.4     **Lessee Compliance.** Lessor shall not be required to tender possession of the Premises to Lessee until Lessee compiles with itsobligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstandingLessor’s election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may electto withhold possession until such conditions are satisfied.**4.       ****Rent.**          4.1     **Rent Defined.** All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security Deposit) aredeemed to be rent (“Rent”).          4.2     **Payment.** Lessee shall cause payment of Rent to be received byLessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. Rent for any period during the term hereof which is for less than one (1) fullcalendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing.Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating.**5.**       **Security Deposit.** Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful performance of its obligationsunder this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate Lessor for anyliability, expense, loss or damage which Lessor may suffer or incur by reason thereof.  If Lessor uses or applies all or any portion of said Security Deposit, Lessee shall within ten (10) days after written request therefor deposit monies withLessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional monies with Lessor so that thetotal amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate a material change in thebusiness of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and tear that the Premisesmay suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced, Lessee shall deposit suchadditional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on said change in financial condition. Lessor shall not be required to keep the Security Deposit separate from itsgeneral accounts. Within fourteen (14) days after the expiration or termination of this Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within thirty (30) days after the Premises have been vacated pursuant toParagraph 7.4(c) below, Lessor shall return that portion of the security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be held in trust, to bear interest or to be prepayment for any monies to be paidby Lessee under this Lease.**6.       Use.**          6.1     **Use.** Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably comparablethereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs owners and/or occupants of, or causes damage to neighboring properties.Lessor shall not unreasonably withhold or delay its consent to any written request for a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electricalsystems therein, is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within five (5) business days after such request give written notification of same, which notice shall include an explanationof Lessor’s objections to the change in use.          6.2     **Hazardous Substances.**                    (a)  Reportable Uses Require Consent. The term “Hazardous Substance” as used in thisLease shall mean any product, substance, or

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waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in combination with other materials expected to be on the Premises, is either:(i) potentially injurious to the public health, safety or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or thirdparty under any applicable statute or common law theory. Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in anyactivity in or on the Premises which constitutes a Reportable Use of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements. “ReportableUse” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which areport, notice, registration or business plan is required to be filed with, any governmental authority and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice begiven to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, so long as suchuse is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor to any liability therefor. In addition,Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against damage, contamination, injury and/orliability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security Deposit.                    (b)  **Duty to inform Lessor.** If Lessee knows, or has reasonable cause to believe, that aHazardous Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report,notice, claim or other documentation which it has concerning the presence of such Hazardous Substance.                    (c)  **Lessee Remediation.** Lessee shall not cause or permit any Hazardous Substance to bespilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, take all investigatory and/or remedial action reasonably recommended, whether or notformally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to orinvolving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party.                    (d)  **Lessee Indemnification.** Lessee shall indemnify, defend and hold Lessor, its agents,employees, lenders and ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving anyHazardous Substance brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Leases with respect to underground migration of any Hazardous Substance under the Premises fromadjacent properties).  Lessee’s obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation, removal,remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. **No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under thisLease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement.**                    (e)  **Lessor Indemnification.** Lessor and its successors and assigns shall indemnify,defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost of remediation, which existed as a result of Hazardous Substances, on the Premises prior to the Start Dateor which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor’s obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation,removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.                    (f)  **Investigations and Remediations.** Lessor shall retain the responsibility and pay forany investigations or remediation measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless such  remediation measure is required as aresult of Lessee’s use (including ‘‘Alterations”, as defined in Paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at therequest of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial responsibilities.                    (g)  **Lessor Termination Option. **  If a Hazardous Substance Condition occursduring the term of this Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable Requirements and this Lease shall continue in full force and effect,but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’sexpense, in which event this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds twelve (12) times the then monthly Base Rent or $100,000, whichever is greater, give written notice toLessee, within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, or Lessor’s desire to terminate this Lease as of the date sixty (60) days following the date of such notice. In theevent Lessor elects to give a termination notice, Lessee may, within ten (10) days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Conditionexceeds an amount equal to twelve (12) times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within thirty (30) days following such commitment. In suchevent, this Lease shall continue in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds orassurance thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s notice of termination.          6.3     **Lessee’s Compliance with Applicable Requirements.**  Except as otherwise provided in this Lease, Lessee shall, atLessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’sengineers and/or consultants which relate in any manner to the Premises, without regard to whether said requirements are now in effect or become effective after the Start Date. Lessee shall, within ten (10) days after receipt of Lessor’swritten request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor inwriting (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply with any Applicable Requirements.          6.4     **Inspection; Compliance.** Lessor and Lessor’s “Lender” (as defined in Paragraph 30 below) andconsultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times, for the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease.The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a contamination is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lesseeshall upon request reimburse Lessor for the cost of such inspections, so long as such inspection is reasonably related to the violation or contamination.**7.       Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.**         7.1     **Lessee’s Obligations.**                    (a)  **In General.** Subject to the provisions of Paragraph 2.2 (Condition), 2.3(Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense, keep the Premises, Utility Installations, andAlterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs asa result of Lessee’s use, any prior use, the elements or the age of such portion of the Premise). Including, but not limited to, all equipment or facilities, such as plumbing, heating, ventilating, air-conditioning, electrical, lightingfacilities, boilers, pressure vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls,signs, sidewalks and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair, shall exercise and perform good maintenance practices, specifically including the procurement andmaintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order,condition and state of repair. Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition consistent with the exterior appearance of other similar facilities of comparable age and size in thevicinity, including, when necessary, the exterior repainting of the Building.                    (b)  **Service Contracts.** Lessee shall, at Lessee’s sole expense, procure and maintaincontracts,with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and improvements, if any, if and when installed on the Premises: (i) HVACequipment, (ii) boiler and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke defection

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(iv) landscaping and irrigation systems, (v) roof covering and drains. (vi) driveways and parking lots, (vii) clarifiers (viii) basic utility feed to the perimeter of theBuilding, and (ix) any other equipment, if reasonably required by Lessor.                    (c)  **Replacement.** Subject to Lessee’s indemnification of Lessor as set forth inParagraph 8.7 below, and without relieving Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if the Basic Elements described in Paragraph 7.1(b) cannot be repaired other than at a cost whichis in excess of 50% of the cost of replacing such Basic Elements, then such Basic Elements shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month during theremainder of the term of this Lease, on the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is the number of monthsof the useful life of such replacement as such useful life is specified pursuant to Federal income tax regulations or guidelines for depreciation thereof (including interest on the unamortized balance as is then commercially reasonable in thejudgment of Lessor’s accountants), with Lessee reserving the right to prepay its obligation at any time.          7.2     **Lessor’s Obligations.** Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage orDestruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of theLessee. It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter ineffect  to the extent it is inconsistent with the terms of this Lease.          7.3     **Utility Installations; TradeFixtures; Alterations.**                    (a)  **Definitions; ConsentRequired.**  The term **“Utility Installations”** refers to all floor and window coverings, air lines, power panels, electrical distribution, security and fire protection systems, communication systems, lighting fixtures, HVACequipment, plumbing, and fencing in or on the Premises. The term **“Trade Fixtures”** shall mean Lessee’s machinery and equipment that can be removed without doing material damage to the Premises. The term**“Alterations”** shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion. **“Lessee Owned Alterations and/or Utility Installations”** are definedas Alterations and/or Utility Installations made by Lessee that are not yet owned by Lesser pursuant to Paragraph 7.4(a). Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor’s prior written consent.Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing,relocating or removing the roof or any existing walls, and the cumulative cost thereof during this Lease as extended does not exceed $50,000 in the aggregate or $10,000 in any one year.                    (b)  **Consent.** Any Alterations or Utility Installations that Lessee shall desire to makeand which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor withcopies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in a prompt and expeditious manner. Any Alterations or UtilityInstallations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For work which costs an amount equal to the greater of onemonth’s Base Rent, or $10,000, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to one and one-half times the estimated cost of such Alteration or Utility Installation and/or uponLessee’s posting an additional Security Deposit with Lessor.                    (c)  **Indemnification.** Lessee shall pay, when due, all claims for labor or materialsfurnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien against the Premises or any interest therein. Lessees shall give Lessornot less than ten (10) days’ notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity of any such lien, claim ordemand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement thereof. If Lessor shallrequire, Lessee shall furnish a surety bond in an amount equal to one and one-half times the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action,Leases shall pay Lessor’s attorneys’ fees and costs.          7.4     **Ownership, Removal; Surrender; andRestoration.**                    (a)  **Ownership.**   Subject toLessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time, elect inwriting to be the owner to all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per Paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expirationor termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.                    (b)  **Removal.** By delivery to Lessee of written notice from Lessor not earlier than ninety(90) and not later than thirty (30) days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed by the expiration or termination of this Lease. Lessor may requirethe removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent                    (c)  **Surrender/Restoration.** Lessee shall surrender the Premises by the Expiration Date orany earlier termination date, with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear”shall not include any damage or deterioration that would have been prevented by good maintenance practice. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee Owned Alterations and/orUtility Installations, furnishings, and equipment as well as the removal of any storage tank installed by or for Lessee, and the removal, replacement, or remediation of any soll, material or groundwater contaminated by Lessee. Trade Fixtures shallremain the property of Lessee and shall be removed by Lessee. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the previsions ofParagraph 26 below.**8.       Insurance; Indemnity.**          8.1     **Payment For Insurance.** Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the costattributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Leaseterm. Payment shall be made by Lessee to Lessor within ten (10) days following receipt of an invoice.          8.2     **Liability Insurance.**                    (a)     **Carried by Lessee.** Lessee shall obtain and keep in force aCommercial General Liability Policy of insurance protecting Lessee and Lessor against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and allareas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $ 2,000,000 per occurrence with an **“Additional Insured-Managers or Lessors of Premises Endorsement”**and contain the **“Amendment of the Pollution Exclusion Endorsement”** for damage caused by heat, smoke or fumes from a hostile fire. The Policy shall not contain any intra-insured exclusions as between insured persons or organizations,but shall include coverage for liability assumed under this Lease as an ‘insured contract’ for the performance of Lessee’s indemnity obligations under this Lease. The limits of said insurance shall not, however, limit the liability ofLessee nor relieve Lessee of any obligation hereunder. All insurance carried by Lessee shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only.                    (b)     **Carried by Lessor.** Lessor shall maintain liabilityinsurance as described in Paragraph 8.2(a). In addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.          8.3     **Property Insurance - Building, Improvements and Rental Value.**                    (a)  **Building and Improvements.** The Insuring Party shall obtain and keep in force apolicy or policies in the name of Lessor, with loss payable to Lessor, any groundlessor, and to any Lender(s) insuring loss or damage to the Premises. The amount of such insurance shall be equal to the full replacement cost of the Premises, as thesame shall exist from time to time, or the amount required by any Lenders, but in no event more than the commercially reasonable and available insurable value thereof. If Lessor is the insuring Party, however, Lessee Owned Alterations and UtilityInstallations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against allrisks of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition,reconstruction or replacement of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation

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provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by afactor of not less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall notexceed $1,000 per occurrence, and Lessee shall be liable for such deductible amount in the event of an insured Loss.                    (b)  **Rental Value.** The Insuring Party shall obtain and keep in force a policy or policiesin the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one (1) year. Said insurance shall provide that in the event the Lease is terminated by reason of an insured loss, the period of indemnity forsuch coverage shall be extended beyond the date of the completion of repairs or replacement of the Premises, to provide for one full year’s loss of Rent from the date of any such loss. Said insurance shall contain an agreed valuation provisionin lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next twelve (12) month period, Lessee shall be liable for any deductible amount in the eventof such loss,                    (c)  **Adjacent Premises.** If the Premises are part ofa larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building or buildings if said increase is caused byLessee’s acts, omissions, use or occupancy of the Premises.**          **8.4**   Lessee’s Property/Business InterruptionInsurance.**                    (a)  **Property Damage.** Lessee shall obtain andmaintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned Alterations and Utility Installations.  Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 peroccurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility installations. Lessee shall provide Lessor with written evidence that suchinsurance is in force.                    (b)  **Business Interruption.** Lessee shallobtain and maintain loss of income and extra expense insurance in amounts as will reimburse Lessee for direct or indirect loss of earnings attributable to an perils commonly insured against by prudent lessees in the business of Lessee orattributable to prevention of access to the Premises as a result of such perils.                    (c)  **No Representation of Adequate Coverage.** Lessor makes no representation that thelimits or forms of coverage of insurance specified hereof are adequate to cover Lessee’s property, business operations or obligations under this Lease.**          **8.5**   Insurance Policies.** Insurance required herein shall be by companies duly licensed or admitted to transact business in the statewhere the Premises are located, and maintaining during the policy term a “General Policyholders Rating” of at least B+, V, as set forth in the most current issue of “Best’s Insurance Guide”, or such other rating as may berequired by a Lender. Lessee shall not do or permit to be done anything which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificatesevidencing the existence and amounts of the required insurance.  No such policy shall be cancelable or subject to modification except after thirty (30) days prior written notice to Lessor.**Lessee shall, at least thirty (30) days prior tothe expiration of such policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be payable by Lesseeto Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, theother Party may, but shall not be required to, procure and maintain the same.**          **8.6**   Waiver of Subrogation.**Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to theperils required to be insured against herein. The effect of such releases and waivers is not limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damageinsurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee as the case may be, so long as the insurance is not invalidated thereby.**          **8.7   **Indemnity.**  Except for Lessor’s gross negligence or willful misconduct. Lessee shall indemnify, protect, defend and holdharmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees,expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall uponnotice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need not have first paid any such claim in order to be defended or indemnified.**          **8.8   **Exemption of Lessor from Liability.** Lessor shall not be liable for injury or damage to the person or goods, wares,merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water orrain, or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon thePremises or upon other portions of the Building of which the Premises are a part, or from other sources or places. Lessor shall not be liable for any damages arising from any act or neglect of any other tenant of Lessor. NotwithstandingLessor’s negligence or breach of this Lease, Lessor shall under no circumstances be liable for injury to Lessee’s business or for any loss of income or profit therefrom. **9.     Damage or Destruction.****          **9.1**   Definitions.**                    (a)  **“Premises Partial Damage”** shall mean damage ordestruction to the improvements on the Premises, other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in six (6) months or less from the date of the damage or destruction. Lessor shall notify Lessee inwriting within thirty (30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.                    (b)  **“Premises Total Destruction”** shall mean damage or destruction to thePremises, other than Lessee Owned Alterations and Utility installations and Trade Fixtures, which cannot reasonably be repaired in six (6) months or less from the date of the damage or destruction, Lessor shall notify Lessee in writing within thirty(30) days from the date of the damage or destruction as to whether or not the damage is Partial or Total.                   (c) ** “Insured Loss”** shall mean damage or destruction to improvements on the Premises,other than Lessee Owned Alterations and Utility installations and Trade Fixtures, which was caused by an event required to be covered by the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limitsinvolved.                    (d)  **“Replacement Cost”** shall mean the costto repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required by the operation of Applicable Requirements, andwithout deduction for depreciation.                    (e)  **“Hazardous SubstanceCondition”** shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises.**          **9.2   **Partial Damage - Insured Loss.** If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at Lessor’sexpense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, atLessor’s election, make the repair of any damage or destruction the total cost to repair of which is $ 10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for thatpurpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductiblewhich is Lessee’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of the improvements, full replacement cost insurance coverage was notcommercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover same, or adequateassurance thereof, within ten (10) days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said ten (10) day period, the party responsible for making therepairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to Lessee within ten (10) days thereafterto: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or have this Lease terminate thirty (30) days thereafter. Lesseeshall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be someinsurance coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.**          **9.3   **Partial Damage - Uninsured Loss.** If a Premises Partial Damage that is not an insured Loss occurs, unless caused by a negligent orwillful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either: (i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full forceand effect, or (ii) terminate this Lease by giving written notice to Lessee

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within thirty (30) days after receipt by Lessor of knowledge of the occurrence of such damage. Such termination shall be effective sixty (60) days following the date of suchnotice. In the event Lessor elects to terminate this Lease. Lessee shall have the right within ten (10) days after receipt of the termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damagewithout reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within thirty (30) days after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shallproceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified in the termination notice.         ** **9.4**   Total Destruction.** Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Leaseshall terminate sixty (60) days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as providedin Paragraph 8.6.        ** **9.5**   Damage Near End of Term.** If at any time during the last six (6) months of this Lease there is damage forwhich the cost to repair exceeds one (1) month’s Base Rent, whether or not an insured Loss, Lessor may terminate this Lease effective sixty (60) days following the date of occurrence of such damage by giving a written termination notice toLessee within thirty (30) days after the date of occurrence of such damage.  Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Leaseby, (a) exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is ten days after Lessee’s receipt ofLessor’s written notice purporting to terminate this Lease, or (ii) the day prior to the rate upon which such option expires.  If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurancethereof, to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee falls toexercise such option and provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall be extinguished.        **  **9.6**   Abatement of Rent; Lessee’s Remedies.**                    (a) * ***Abatement.** In the event of Premises Partial Damage or Premises TotalDestruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to thedegree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability forany such damage, destruction, remediation, repair or restoration except as provided herein.*            *        (b)*  ***Remedies.** If Lessor shall be obligated to repair or restore thePremises and does not commence, in a substantial and meaningful way, such repair or restoration within ninety (90) days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give writtennotice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee’s election to terminate this Lease on a date not less than sixty (60) days following the giving of such notice. If Lessee gives such notice and such repair orrestoration is not commenced within thirty (30) days thereafter, this Lease shall terminate as of the date specified in said notice. If the repair or restoration is commenced within said thirty (30) days, this Lease shall continue in full force andaffect, **“Commence”** shall mean either the unconditional authorization of the preparation of the required plans, or the beginning of the actual work on the Premises, whichever first occurs.           9.7   **Termination - Advance Payments.** Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerningadvance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor.        9.8  *** *Waive Statutes.**  Lessor and Lessee agree that the terms of this Lease shall govern the effect of any damage to or destructionof the Premises with respect to the termination of this Lease and hereby waive the provisions of any present or future statute to the extent inconsistent herewith.**10.     Real Property Taxes.**          10.1   **Definition of “Real PropertyTaxes.”** As used herein, the term “Real Property Taxes” shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estatetaxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority havingthe direct or indirect power to tax and where the funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, country or other local taxing authority of a jurisdiction within whichthe Premises are located. The term **“Real Property Taxes”** shall also include any tax, fee, levy, assessment or charge, or any increase therein. Imposed by reason of events occurring during the term of this Lease, including but notlimited to, a change in the ownership of the Premises.         10.2                   (a)  **Payment of Taxes.** Lessee shall pay the Real Property Taxes applicable to the Premises during the term of this Lease. Subject to Paragraph 10.2(b), all suchpayments shall be made at least ten (10) days prior to any delinquency date.   Lessee shall promptly furnish Lessor with satisfactory evidence that such taxes have been paid. If any such taxes shall cover any period of time prior to orafter the expiration or termination of this Lease, Lessee’s share of such taxes shall be prorated to cover only that portion of the tax bill applicable to the period that this Lease is in effect, and Lessor shall reimburse Lessee for anyoverpayment. If Lessee shall fall to pay any required Real Property Taxes, Lessor shall have the right to pay the same, and lessees shall reimburse Lessor therefor upon demand.                 (b)  **Advance Payment** in the event Lessee incurs a late charge on any Rent payment, Lessor may, atLessor’s option, estimate the current Real Property Taxes, and require that such taxes be paid in advance to Lessor by Lessee, either: (i) in a lump sum amount equal to the installment due at least twenty (20) days prior to the applicabledelinquency date, or (ii) monthly in advance with the payment of the Base Rent.   If Lessor elects to require payment monthly in advance, the monthly payment shall be an amount equal to the amount of the estimated installment of taxesdivided by the number of months remaining before the month in which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as required toprovide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sums as are necessary to pay such obligations.All monies paid to Lessor under this Paragraph may be intermingled with other monies of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its obligations under this Lease, then any balance of funds paid toLessor under the provisions of this Paragraph may, at the option of Lessor, be treated as an additional Security Deposit.           10.3   **Joint Assessment.** If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion of the Real Property Taxes for all of the land andimprovements included within the tax parcel assessed, such proportion to be conclusively determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be reasonablyavailable.         10.4   **Personal Property Taxes.** Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon LesseeOwned Alterations, Utility installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause such property to be assessed and billed separately from the real property of Lessor. If any ofLessee’s said personal property shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property within ten (10) days after receipt of a written statement.**11.**     **Utilities.** Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxesthereon. If any such services are not separately metered to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered.**12.     Assignment and Subletting.**         12.1   **Lessor’s Consent Required.                 **  (a)   Lessee shall not voluntarily or by operation of law assign, transfer,mortgage or encumber (collectively, **“assign or assignment”**) or subject all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s prior written consent.                (b)   A change in the control of Lessee shall constitute an assignment requiring consent. The transfer, on acumulative basis, of twenty-five percent (25%) or more of the voting control of Lessee shall constitute a change in control for this purpose.                 (c)   The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or not aformal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than twenty-five percent (25%) of such Net Worth as it was represented atthe time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shallbe considered an assignment of this Lease to which Lessor may withhold its consent. **“Net Worth of Lessee”** shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles.                   (d)  An assignment or subletting without consent shall, at Lessor’s option, be aDefault curable after notice per Paragraph 13.1(c), or a

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noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a noncurable Breach, Lessor mayeither: (i) terminate this Lease, or (ii) upon thirty (30) days written notice, increase the monthly Base Rent to one hundred ten percent (110%) of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) thepurchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to one hundred ten percent (110%) of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during theremainder of the Lease term shall be increased to One Hundred Ten Percent (110%) of the scheduled adjusted rent.                         (e)  Lessee’s remedy for any breach of Paragraph 12.1 byLessor shall be limited to compensatory damages and/or injunctive relief.           12.2     **Terms and Conditions Applicable toAssignment and Subletting.**                         (a)  Regardless of Lessor’s consent, any assignment orsubletting shall not: (i) be effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease; (ii) release Lessee of any obligations hereunder; or (iii) alter the primary liability ofLessee for the payment of Rent or for the performance of any other obligations to be performed by Lessee.                     (b)  Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of suchassignment nor the acceptance of Rent or performance shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach.                    (c)  Lessor’s consent to any assignment or subletting shall not constitute aconsent to any subsequent assignment or subletting.                          (d)  In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations underthis Lease, including any assignee or sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefore to Lessor, or any security held by Lessor.                      (e)  Each request for consent to an assignment or subletting shall be inwriting, accompanied by information relevant to Lessor’s determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or requiredmodification of the Premises, if any, together with a fee of $1,000 or ten percent (10%) of the current monthly Base Rent applicable to the portion of the Premises which is the subject of the proposed assignment or sublease, whichever is greater, asconsideration for Lessor’s considering and processing said request.   Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested.                     (f)  Any assignee of, or sublessee under, this Lease shall, by reason of acceptingsuch assignment or entering into such sublease, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said assignmentor sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing.           12.3        **Additional Terms and Conditions Applicable to Subletting.** The following terms and conditions shall apply to any subletting by Lessee of all or anypart of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly incorporated therein:                       (a)  Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on any sublease, and Lessor maycollect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s obligations, Lessee may collect said Rent. Lessor shall not, by reason of theforegoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee herebyirrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due underthe sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary.                    (b)  In the event of a Breach by Lessee, Lessor may, at its option, require sublessee toattorn to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for anyprepaid rents or security deposit paid by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.                        (c)  Any matter requiring the consent of the sublessorunder a sublease shall also require the consent of Lessor.                     (d)  No sublesseeshall further assign or sublet all or any part of the Premises without Lessor’s prior written consent.                     (e)  Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified insuch notice. The sublessee shall have a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. **               13.                 Default; Breach;Remedies.**                     13 1     **Default;Breach,**     A **“Default”** is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or rules under this Lease. A **“Breach”** is defined as theoccurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace period:                         (a)  The abandonment of the Premises; or thevacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing reasonable assurances tominimize potential vandalism,                       (b)  The failure of Lessee to makeany payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease whichendangers or threatens life or property, where such failure continues for a period of three (3) business days following written notice to Lessee.                         (c)  The failure by Lessee to provide (i) reasonable writtenevidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) a Estoppel Certificate, (v) a requested subordination. (vi) evidence concerning any guarantyand/or Guarantor, (vii) any document requested under Paragraph 42 (easements), or (viii) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for aperiod of ten (10) days following written notice to Lessee.                          (d)  A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than thosedescribed in subparagraphs 13.1(a), (b) or (c), above, where such Default continues for a period of thirty (30) days after written notice; provided, however, that if the nature of Lessee’s Default is such that more than thirty (30) days arereasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion,                         (e)  The occurrence of any of the following events: (i) the makingof any general arrangement or assignment for the benefit of creditors; (ii) becoming a**“debtor”** as defined in 11 U. S.C., § 101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the sameis dismissed within sixty (60) days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where possession is not restoredto Lessee within thirty (30) days; or (iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is not dischargedwithin thirty (30) days; provided, however, in the event that any provision of this subparagraph 13.1 (e) is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.                         (f)  The discovery that any financial statement ofLessee or of any Guarantor given to Lessor was materially false.                     (g)  If theperformance of Lessee’s obligations under this Lease is guaranteed: (i) the death of a Guarantor; (ii) the termination of a Guarantor's liability with respect to this Lease other than in accordance with the terms of such guaranty; (iii) aGuarantor’s becoming insolvent or the subject or a bankruptcy filing; (iv) a Guarantor’s refusal to honor the guaranty; or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure, withinsixty (60) days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and theGuarantors that existed at the time of execution or this Lease,        13.2        **Remedies.** If Lessee falls to perform anyof its affirmative duties or obligations, within ten (10) days after written notice (or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee’s behalf, including but not limited to theobtaining of reasonably required bonds, insurance policies, or governmental licenses, permits or approvals. The costs and expenses of any such performance by Lessor shall be due and payable by Lessee upon receipt of invoice therefor.  If anycheck given to Lessor by Lessee shall not be honored by the bank upon which it drawn, Lessor at its option, may require all future payments to be made by Lessee to be by cashier’s check. In the event of a Breach, Lessor may, with or withoutfurther notice or demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:

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                         (a)  TerminateLessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor, In such event Lessor shall be entitled to recover from Lessee: (i) theunpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental lossthat the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee provescould be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its obligations under this Lease or which in the ordinary course of things wouldbe likely to result therefrom, including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, reasonable attorneys’ fees, and that portion ofany leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred to in provision (iii) of the Immediately preceding sentence shall be computedby discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent (1%).  Efforts by Lessor to mitigate damages caused by Lessee’s Breachof this Lease shall not waive Lessor’s right to recover damages under Paragraph 12. If termination of this Lease is obtained through the provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding anyunpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent orquit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shallrun concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/orby said statute,                          (b)  Continue the Lease andLessee’s right to possession and recover, the Rent as it becomes due, in which event Lessee may sublet or assign subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect theLessor’s interests, shall not constitute a termination of the Lessee’s right to possession.                      (c)  Pursue any other remedy now or hereafter available under the laws or Judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease and/orthe termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee’s occupancy of thePremises.          13.3        **Inducement Recapture.** Any agreement for free or abated rent or other charges, or forthe giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as **“Inducement Provisions,”**shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants and conditions of this Lease.  Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deletedfrom this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by Lessee toLessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of Rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of thisparagraph unless specifically so stated in writing by Lessor at the time of such acceptance.            13.4        **Late Charges.**     Lessee hereby acknowledges that late payment by Lessee of Rent will cause Leasor to incur costs not contemplated by thisLease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shallnot be received by Lessor within five (5) days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall pay to Lessor a one-time late charge equal to ten percent (10%) of each such overdue amount.  TheParties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’sDefault or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted hereunder.  In the event that a late charge is payable hereunder, whether or not collected, for three (3)consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in advance,           13.5        **Interest.**     Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due *as*to scheduled payments (such as Base Rent) or within thirty (30) days following the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled payments, or the thirty-first (31st) day after itwas due as to nonscheduled payments. The Interest (**“Interest”**) charged shall be equal to the prime rate reported in the Wall Street Journal as published closest prior to the date when due plus four percent (4%), but shall not exceedthe maximum rate allowed by law. Interest is payable in addition to the potential late charge provided for in Paragraph 13.4.            13.6        **Breach by Lessor.**                     (a)  **Notice of Breach.**  Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to perform an obligation required to be performed by Lessor. For purposes of thisParagraph, a reasonable time shall in no event be less than thirty (30) days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such purpose, of written notice specifying wherein suchobligation of Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more than thirty (30) days are reasonably required for its performance, then Lessor shall not be in breach if performance iscommenced within such thirty (30) day period and thereafter diligently pursued to completion.                      (b)  **Performance by Lessee on Behalf of Lessor.** In the event that neither Lessor nor Lender cures said breach within thirty (30) days after receipt of said notice, or if havingcommenced said cure they do not diligently pursue it to completion, then Lessee may elect to cure said breach at Lessee’s expense and offset from Rent an amount equal to the greater of one month’s Base Rent or the Security Deposit, and topay an excess of such expense under protest, reserving Lessee’s right to reimbursement from Lessor, Lessee shall document the cost of said cure and supply said documentation to Lessor.            14.         **Condemnation.** If the Premises or any portion thereof are taken under thepower of eminent domain or sold under the threat of the exercise of said power (collectively **“Condemnation”**), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession,whichever first occurs.  If more than ten percent (10%) of any building portion of the Premises, or more than twenty-five percent (25%) of the land area portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may,at Lessee’s option, to be exercised in writing within ten (10) days after Lessor shall have given Lessee written notice of such taking (or in the absence of such notice, within ten (10) days after the condemning authority shall have takenpossession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease shall remain in full force and effect as to the portion of thePremises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of Lessor, whether such award shall bemade as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation for Lessee’s relocation expenses, loss of businessgoodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this Paragraph.  All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnationonly, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation. Lessor shall repair any damage tothe Premises caused by such Condemnation.         ** 15.         Brokers’ Fee.**              15.1          **Additional Commission.**  In addition to the payments owedpursuant to Paragraph 1.10 above, and unless Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a) if Lessee exercises any Option, (b) if Lessee acquires any rights to the Premises or other premises owned by Lessor and locatedwithin the same Project, if any, within which the Premises is located, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement oroperation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the schedule of said Brokers in effect at the time of the execution of this Lease.             15.2          **Assumption of Obligations.**   Any buyer or transferee ofLessor’s interest in this Lease shall be deemed to have assumed Lessor’s obligation hereunder. Each Broker shall be a third party beneficiary of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to a Broker anyamounts due as and for commissions pertaining to this Lease when due, then such amounts shall accrue Interest.  In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s Broker may send written notice toLessor and Lessee of such failure and if Lessor falls to pay such amounts within ten (10) days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed tobe a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s Broker.                 15.3          **Representations and Indemnities of Broker Relationships,** Lessee and Lessor each represent and warrant to the other that it has had

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no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one other than said named Brokers is entitled toany commission or finder’s fee in connection herewith.  Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by anysuch unnamed broker, finder or other similar party by reason of any dealings or actions of the Indemnifying Party, including any costs, expenses, and/or attorneys’ fees reasonably incurred with respect thereto.**16.**          **Estoppel Certificates.**                         (a)  Each Party (as**“Responding Party”**) shallwithin ten (10) days after written notice from the other Party (the**“Requesting Party”**) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current **“EstoppelCertificate”** form published by the American Industrial Real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.                         (b)  If the Responding Party shall fail to execute or deliver theEstoppel Certificate within such ten day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) thereare no uncured defaults in the Requesting Party’s performance, and (iii) if Lessor is the Requesting Party, not more than one month’s Rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the RequestingParty’s Estoppel Certificate, and the Responding Party shall be estopped from denying the truth of the facts contained in said Certificate.                         (c)  If Lessor desires to finance, refinance, or sell thePremises, or any part thereof, Lessee and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such financial statements as may be reasonably required by such lender or purchaser, including, but not limited to,Lessee’s financial statements for the past three (3) years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall be used only for the purposes herein set forth.**17.**         **Definition of Lessor.**     The term**“Lessor”**as used herein shall mean the owner or owners at the time in questionof the fee title to the Premises, or, this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee orassignee (in cash or by credit) any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liabilitywith respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor.  Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be binding only upon theLessor as hereinabove defined. Notwithstanding the above, and subject to the provisions of Paragraph 20 below, the original Lessor under this Lease, and all subsequent holders of the Lessor’s interest in this Lease shall remain liable andresponsible with regard to the potential duties and liabilities of Lessor pertaining to Hazardous Substances as outlined in Paragraph 6 above.**18.****         ****Severability.**     The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction, shallin no way affect the validity of any other provision hereof.**19.****         ****Days.**     Unless otherwisespecifically indicated to the contrary, the word “days” as used in this Lease shall mean and refer to calendar days.**20.****         ****Limitation on Liability.**     Subject to the provisions of Paragraph 17 above, the obligations of Lessor under this Leaseshall not constitute personal obligations of Lessor, the individual partners of Lessor or its or their individual partners, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for thesatisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against the individual partners of Lessor, or its or their individual partners, directors, officers or shareholders, or any of their personal assets forsuch satisfaction.**21.****         ****Time of Essence.** Time is of the essence with respect to the performance of all obligations to beperformed or observed by the Parties under this Lease.**22*.     *No Prior or Other Agreements; Broker Disclaimer.**  This Lease contains all agreements betweenthe Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon,its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to the nature, quality and character of the Premises.  Brokers have no responsibility with respect thereto or withrespect to any default or breach hereof by either Party. The liability (including court costs and Attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or performance by either Lessor or Lessee under this Lease or anyamendment or modification hereto shall be limited to an amount up to the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any grossnegligence or willful misconduct of such Broker.**23.         Notices.**           23.1     **Notice Requirements.**     All notices required or permitted by this Lease shall be in writingand may be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, of by facsimile transmission, and shall be deemed sufficiently given if servedin a manner specified in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify adifferent address for notice, except that upon Lessee’s taking possession of the Premises, the Premises shall constitute Lessee’s address for notice.  A copy of all notices to Lessor shall be concurrently transmitted to such party orparties at such addresses as Lessor may from time to time hereafter designate in writing.           23.2    **Date ofNotice.** Any notice sent by registered or certified mail, return receipt requested, shall be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mall the noticeshall be deemed given forty-eight (48) hours after the same is addressed as required herein and mailed with postage prepaid,  Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemedgiven twenty-four (24) hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered upon telephone confirmation of receipt, provided a copy is alsodelivered via delivery or mail. If notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.**24.**         **Waivers.**     No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed awaiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be deemed to renderunnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. The acceptanceof Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of monies or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee inconnection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment**25.****         ****Recording.**     Either Lessor or Lessee shall, upon request of the other, execute, acknowledge and deliver to the other ashort form memorandum of this Lease for recording purposes. The Party requesting recordation shall be responsible for payment of any fees applicable thereto.**26.**         **No Right To Holdover.** Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lessee. Inthe event that Lessee holds over, then the Base Rent shall be increased to one hundred fifty percent (150%) of the Base Rent applicable during the month immediately preceding the expiration or termination. Nothing contained herein shall be construedas consent by Lessor to any holding over by Lessee.**27.****         ****Cumulative Remedies.** No remedy or election hereunder shall be deemedexclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.**28.****         ****Covenants andConditions:** Construction of Agreement.   All provisions of this Lease to be observed or performed by Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Partiesonly and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fairmeaning as a whole, as if both Parties had prepared it.**29.         Binding Effect;  Choice of Law.** This Lease shall be binding upon theparties, their personal representatives, successors and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which thePremises are located.**30.         Subordination;  Attornment; Non-Disturbance.**          30.1     **Subordination.**     This Lease and any Option granted hereby shall be subject and subordinate to anyground lease, mortgage, deed of trust, or other hypothecation or security device (collectively, **“Security Device”**), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to allrenewals, modifications, and extensions thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together’ referred to as “Lessor’s Lender”) shall have no liability or obligation to perform any of theobligations of Lessor under this Lease. Any Lender may elect to  have this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Optionsshall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation thereof.          30.2     **Attornment.** Subject to the non-disturbance provisions of Paragraph 30.3, Lessee agrees to attorn to a Lender or any otherparty who

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acquires ownership of the Premises by reason of a foreclosure of a Security Device, and that in the event of such foreclosure, such new owner shall not; (i) be liable for anyact or omission of any prior lessor or with respect to events occurring prior to acquisition of ownership; (ii) be subject to any offsets or defences which Lessee might have against any prior lessor; or (iii) be bound by prepayment of more than one(1) month’s rent.           30.3     **Non-Disturbance.**With respect to Security Devices entered into by Lessor after theexecution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a **“Non-Disturbance Agreement”**) from the Lender which Non-Disturbance Agreementprovides that Lessee’s possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof and attorns to the record owner of the Premises. Further, withinsixty (60) days after the execution of this Lease, Lessor shall use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security Device which be secured by the Premises. In the event thatLessor is unable to provide the Non-Disturbance Agreement within said sixty (60) days, then Lessee may, at Lessee’s option, directly contact Lessor’s lender and attempt to negotiate for the execution and delivery of a Non-DisturbanceAgreement.         30.4     **Self-Executing.** The agreements contained in this Paragraph 30 shall be effective without the executionof any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably requiredto separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein.**31.      Attorneys’ Fees.**If any Party or Brokerbrings an action or proceeding involving the Premises to enforce the terms hereof or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonableattorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term **“Prevailing Party”** shall include, withoutlimitation, a Party or Broker who substantially obtains or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ feesaward shall not be computed in accordance with any court fee schedule, but shall be such as to fully reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurredin the preparation and service of notices of Default and consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach.**32.      Lessor’s Access;****Showing Premises; Repairs.** Lessor and Lessor’s agents shall have the right to enter the Premises at any time, in the case of an emergency, andotherwise at reasonable times for the purpose of showing the same to prospective purchasers, lenders, or lessees, and making such alterations, repairs, improvements or additions to the Premises as Lessor may deem necessary. All such activities shallbe without abatement of rent or liability to Lessee. Lessor may at any time place on the Premises any ordinary **“For Sale”** signs and Lessor may during the last six (6) months of the term hereof place on the Premises any ordinary**“For Lease”** signs. Lessee may at any time place on or about the Premises any ordinary **“For Sublease”** sign.**33.      Auctions.**Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit anauction.**34.      Signs.** Except for ordinary “For Sublease” signs, Lessee shall not place any sign upon the Premises without Lessor’s prior writtenconsent. All signs must comply with all Applicable Requirements.**35.      Termination; Merger.** Unless specifically stated otherwise in writing by Lessor, thevoluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser estate in the Premises; provided,however, that Lessor may elect to continue any one or all existing subtenancies. Lessor’s failure within ten (10) days following any such event to elect to the contrary by written notice to the holder of any such lesser interest, shallconstitute Lessor’s election to have such event constitute the termination of such interest.**36.      Consents.** Except as otherwise provided herein, wherever inthis Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual reasonable costs and expenses (including, but not limited to, architects’,attorneys’, engineers’ and other consultants’ fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including, but not limited to, consents to an assignment, a subletting or the presenceor use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act, assignment or subletting shall not constitute an acknowledgment that no Default or Breach byLessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such consent. The failure to specify herein anyparticular condition to Lessor’s consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the particular matter for which consent is being given. Inthe event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in writing and in reasonable detail within ten (10)business days following such request.**37.       Guarantor.**          37.1     **Execution.** The Guarantors, if any, shall each execute a guaranty in the form most recently published by the American Industrial Real EstateAssociation, and each such Guarantor shall have the same obligations as Lessee under this Lease.          37.2     **Default.**It shall constitute a Default of the Lessee if any Guarantor falls or refuses, upon request to provide; (a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor’s behalf to obligate Guarantor,and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements, (c) a Tenancy Statement, or (d) written confirmation that the guaranty isstill in effect.**38.      Quiet Possession.**Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions onLessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof.**39.      Options.**          39.1     **Definition.“Option”** shall mean: (a) the right to extend the term of or renew this Lease or to extend or renew any lease that Lessee has on other property of Lessor, (b) the right of first refusal or first offer to lease either the Premises orother property of Lessor, (c) the right to purchase or the right of first refusal to purchase the Premises or other property of Lessor.          39.2     **Options Personal To Original Lessee.**Each Option granted to Lessee in this Lease is personal to the original Lessee, andcannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafterassigning or subletting.          39.3     **Multiple Options.**In the event that Lessee has any multiple Options toextend or renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised.          39.4     **Effect of Default on Options.**                      (a)     Lessee shall have no right to exercise an Option: (i) duringthe period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time Lessee isin Breach of this Lease, or (iv) in the event that Lessee has been given three (3) or more notices of separate Default, whether or not the Defaults are cured, during the twelve (12) month period immediately preceding the exercise of theOption.                       (b)     The period of time withinwhich an Option may be exercised shall not be extended or enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a).                       (c)     An Option shall terminate and be of no further force oreffect, notwithstanding Lessee’s due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term, (i) Lessee fails to pay Rent for a period of thirty (30) days after such Rent becomes due(without any necessity of Lessor to give notice thereof), (ii) Lessor gives to Lessee three (3) or more notices of separate Default during any twelve (12) month period, whether or not the Defaults are cured, or (iii) if Lessee commits a Breach ofthis Lease.**40.      Multiple Buildings.**If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it will observe all reasonablerules and regulations which Lessor may make from time to time for the management, safety, and care of said properties, Including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and that Lesseewill pay its fair share of common expenses incurred in connection therewith.**41.      Security Measures.**Lessee hereby acknowledges that the rental payable to Lessorhereunder does not include the cost of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents andinvitees and their property from the acts of third parties,**42.      Reservations.**Lessor reserves to itself the right, from time to time, to grant, without theconsent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonablyinterfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by

Page 10 of 12

 

Lessor to effectuate any such easement rights, dedication, map or restrictions,**43.      ****Performance Under Protest**. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party to the other under the provisions hereof, the Partyagainst whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall survive the right on the part of said Party toinstitute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover such sum or so much thereof as it was notlegally required to pay.**44.      ****Authority**. If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, eachindividual executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within thirty (30) days after request, deliver to the other Partysatisfactory evidence of such authority.**45.      Conflict**. Any conflict between the printed provisions of this Lease and the typewritten or handwritten provisionsshall be controlled by the typewritten or handwritten provisions.**46.      Offer**. Preparation of this Lease by either Party or their agent and submission of same tothe other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties hereto.**47.      ****Amendments**. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification. As long as they do not materially change Lessee’s obligations hereunder,Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing of the Premises.**48.      ****Multiple Parties**. If more than one person or entity is named herein as either Lessor or Lessee, such multiple Parties shall have joint and several responsibility to complywith the terms of this Lease.**49.      ****Mediation and Arbitration of Disputes**. An Addendum requiring the Mediationand/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease o is x is not attached to this Lease.
LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASESHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THEPREMISES.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT OR TAXCONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THESTRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE.

WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHERTHAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS LOCATED.

The parties hereto have executed this Lease at theplace and on the dates specified above their respective signatures.
  
 

 

 
Executed at:Costa Mesa, CA
 

Executed at:

Irvine, CA 
 
 

 
  
 

 

 
on:4/8/2002
 

on:

4/8/2002
 
 

 
  
 

 

 
By LESSOR: 
 

By LESSEE:

 

Euclid Plaza, LLC a California Limited Liability Company
 
Prolong Super Lubricants, a Nevada Corporation
  
 

 

 
By:
/s/ EDWIN A. MESERVE

 

By:

/s/ THOMAS C. BILLSTEIN
 
 

 
Name Printed: 
**Edwin A. Meserve**

 

Name Printed:

**Thomas C. Billstein**
Title:
**Managing Member**

 

Title:

**Vice President/Chief Operating Officer**
*By Lessor:*
PRESIDENT PROPERTIES, ACALIFORNIA GENERAL PARTNERSHIP

 

 

 
By:
/s/ EDWIN A. MESERVE

 

By:

 
 
 

 
Name Printed: 
**Edwin A. Meserve**

 

Name Printed: 

 
Title:
**General Partner**

 

Title:

 
 
  

 

 

 
Address: 
**3184-G Airway Avenue Costa Mesa, CA 92626**

 

Address:

**6 Thomas Irvine, CA 9261B**
Telephone: 
**(714) 241-6808**

 

Telephone: 

**(949) 597-2700**
Facsimile: 
**(714) 434-1111**

 

Facsimile: 

**(949) 587-2704**
Federal ID No.  
 

Federal ID No.

  
  
 

 

 
  
 

 

 

NOTE: These forms are often modified to meet the changing requirements of law and industry needs.Always write or call to make sure you are utilizing the most current form: AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 So. Flower Street, Suite 600.

Los Angeles, California 90017. (213)687-8777, Fax No. (213) 687-8616

Page 11 of 12 

 

  

[LOGO APPEARS HERE]

OPTION(S) TO EXTEND STANDARD LEASEADDENDUM

 

**Dated**

December 21, 2001

 

 

 

 

**By and Between (Lessor)**

Euclid Plaza, llc and President Properties

 

 

 

 

**(Lessee)**

Prolong Super Lubricants

 

 

 

 

**Address of Premises:**

6 Thomas Irvine, California

Paragraph 53

A.OPTION(S) TO EXTEND: Lessor hereby grants to Lessee the option to extend the term of this Lease for 1 additional 60 month period(s) commencing when the prior term expires upon each and all of the following terms andconditions.

          (i)     In order to exercise an option to extend, Lessee must give written notice of such election toLessor and Lessor must receive the same at least 12 but not more than N/A months prior to the date that the option period would commence, time being of the essence. If proper notification of the exercise of an option is not givenand/or received, such option shall automatically expire. Options (if there are more than one) may only be exercised consecutively.

          (ii)    The provisions of paragraph 39, including those relating to Lessee’s Default set forth in paragraph 39.4 of this Lease, areconditions of this Option.

          (iii)   Except for the provisions of this Lease granting an option or options to extend theterm, all of the terms and conditions of this Lease except where specifically modified by this option shall apply.

          (iv)    This Option is personal to the original Lessee, and cannot be assigned or exercised by anyone other than said original Lessee and onlywhile the original Lessee is in full possession of the Premises and without the intention of thereafter assigning or subletting.

          (v)     The monthly rent for each month of the option period shall be calculated as follows, using the method(s) indicated below: CheckMethod(s) to be Used and Fill in Appropriately)

o     I.     Cost of Living Adjustment(s) (COLA)        a.     On (Fill in COLA Dates):________________________________________________________________________ the Base Rent shall be adjusted by the change, if any, from the BaseMonth specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select one): o CPI W (Urban Wage Earners andClerical Workers) or oCPI U (All Urban Consumers), for (Fill in Urban Area):All Items (1982-1984 = 100), herein referred to as “CPI”.
        b.     The monthly rent payable inaccordance with paragraph A.I.a. of this Addendum shall be calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2months prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior to (select one) othe first month of the term of this Lease as set forth in paragraph 1.3 (“Base Month”) or o(Fill in Other “Base Month”): ___________________________________. The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any such new monthly rent be less than the rent payable for the monthimmediately preceding the rent adjustment.
        c.     In the event the compilation and/or publication of the CPI shall betransferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the same as the CPI shall be used to make such calculation. In the event that the Parties cannot agree on such alternativeindex, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitrationshall be paid equally by the Parties.

o     II.    Market Rental Value Adjustment(s) (MRV)        a.     On (Fill in MRV Adjustment Date(s) _______________________________________________________ the base Rent shall be adjusted to the “Market Rental Value” of theproperty as follows: 
                1)     Four months prior to each Market Rental ValueAdjustment Date described above, the Parties shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be reached, within thirty days, then:

                        (a)     Lessor and Lessee shall Immediately appoint amutually acceptable appraiser or broker to establish the new MRV within the next 30 days. Any associated costs will be split equally between the Parties, or

                        (b)     Both Lessor and Lessee shall each immediatelymake a reasonable determination of the MRV and submit such determination, in writing, to arbitration in accordance with the following provisions:

Page 1 of 2

                        (i)     Within 15 days thereafter, Lessor and Lesseeshall each select an o appraiser or o broker (**“Consultant”** - checkone) of their choice to act as an arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable Consultant to act as a third arbitrator.
                         (ii)    The 3 arbitrators shall within 30 days of theappointment of the third arbitrator reach a decision as to what the actual MRV for the Premises is, and whether Lessor’s or Lessee’s submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding onthe Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter be used by the Parties.

                         (iii)   If either of the Parties fails to appoint an arbitratorwithin the specified 15 days, the arbitrator timely appointed by one of them shall reach a decision on his or her own, and said decision shall be binding on the Parties.

                         (iv)    The entire cost of such arbitration shall be paid bythe party whose submitted MRV is not selected, i.e. the one that is NOT the closest to the actual MRV.           2)     Notwithstanding the foregoing, the new MRVshall not be less than the rent payable for the month immediately preceding the rent adjustment.

     b. Upon the establishment of each New Market Rental Value;

          1)     the new MRV will become the new “Base Rent” for the purpose of calculating any further Adjustments, and          2)     the first month of each Market Rental Value term shall became the new “Base Month” for the purpose ofcalculating any further Adjustments.

x III. Fixed Rental Adjustment(s) (FRA)The Base Rent shall be increased to the following amounts on the dates set forthbelow:**On (Fill in FRA Adjustment Date(s)):**
  

**The New Base Rent shall be:**

  

  

  
January 1, 2007 
$

39,140

 
January 1, 2008 
$

40,300

 
January 1, 2009 
$

41,520

 
January 1, 2010 
$

42,770

 
January, 1, 2011 
$

44,050

 

B.     NOTICE:         Unless specified otherwise herein, notice of any rental adjustments, other than Fixed Rental Adjustments, shall be made as specified in paragraph 23 of the Lease.

C.     BROKER’S FEE:          The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance with paragraph 15 of theLease.

NOTE:  These forms are often modified to meet changing requirements of law and needs of the industry. Always write or call to make sure you are utilizing the most current form:AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION, 700 S. Flower Street, Suite 600, Los Angeles, Calif, 90017

Page 2 of 2

**ADDENDUM**

TO THAT CERTAIN STANDARD INDUSTRIAL/COMMERCIAL SINGLE TENANT LEASE – NET DATED DECEMBER 21,2001, BY AND BETWEEN EUCLID PLAZA, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, AND PRESIDENT PROPERTIES, A CALIFORNIA GENERAL PARTNERSHIP (“LESSOR”) AND PROLONG SUPER LUBRICANTS, INC., A NEVADA CORPORATION (“LESSEE”) FOR THOSEPREMISES LOCATED AT 6 THOMAS, IRVINE, CALIFORNIA.

50.

**Base Rent.** The Monthly Base Rent payable during the Term shall be as follows: