Document:

ex10_2.htm

    

      
        

      

      
        STANDARD
INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - NET

      

      
        AIR
COMMERCIAL REAL ESTATE ASSOCIATION

      

      
        

      

      
        1.          Basic
Provisions ("Basic Provisions").

              1.1          
 Parties: This
Lease ("Lease"), dated
for reference purposes only February   14,    2007                                                                                                                                                                                                                      

        is made
by and between Land  Associates   Trust,    E.
C
..   Alsenz,    Trustee_____________________________________________________________________________________________________________________

      

      
        ____________________________________________________________________________________________________________________________________________________________________       ("Lessor")

      

      
        and T3 Motion, Inc., a
Delaware Corporation_____________________________________________________________________________________________________________________________________________

      

      
        ________________________________________________________________________________________________________________________     ("Lessee"), (collectively the
"Parties", or individually a "Party").

              1.2(a)       Premises: That certain
portion of the Project (as defined below), including all improvements therein or
to be provided by Lessor under the terms of this Lease, commonly known by the
street
address of  2990   Airway  Avenue                                                                                                                                                                                                                                                                                                                             

        located
in the City of Costa  Mesa  ,
County of Orange,  State
of California                            ,
with zip code 92626, as outlined on
Exhibit A_____  attached
hereto ("Premises") and generally described as (describe
briefly the nature of the Premises):     an   approximate   33,520   square   foot   Premises                                                                                                                                                                                                                                                                                                    

      

      
        In
addition to Lessee's rights to use and occupy the Premises as hereinafter
specified, Lessee shall have non-exclusive rights to the any utility raceways of
the building containing the Premises ("Building") and to the common Areas (as
defined in Paragraph 2.7 below), but shall not have any rights to the roof or
exterior walls of the Building or to any other buildings in the Project. The
Premises, the Building, the Common Areas, the land upon which they are located,
along with all other buildings and improvements thereon, are herein collectively
referred to as the    "Project"   (See also Paragraph
2)

      

      
        1.2(b)       Parking: 67_____________________________  unreserved
vehicle parking spaces. (See also Paragraph 2.6)

      

      
        1.3            Term: 5__________________years
and 3_______________________________________  months
("Original Term") commencing June   1,    2007                                            
 ("Commencement Date") and
ending August   31,    2012                    
("Expiration Date"). (See also
Paragraph 3)

      

      
        1.4            Early    Possession: Upon   full   execution   of   the   lease             
 document, 
payment    of    required monies,
providing evidence of insurance as identified in this lease, completion of
tenant improvements by Lessor and the current tenant vacating the Premises
("Early Possession
Date").

      

      
        (See also
Paragraphs 3.2 and 3.3)

      

      
        1.5           
Base Rent: $    22,458.40            per
month ("Base Rent"), payable on the first
day of each month commencing June   1,    2007
..(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            Lessee's Share of Common Area Operating
Expenses:         fifty percent (50%) ("Lessee's Share"). Lessee's Share has been
calculated by dividing the approximate square footage of the Premise by the
approximate square footage of the Project.  In the event that the size
of the Premises and/or the Project are modified during the term of this Lease,
Lessor shall recalculate Lessee's Share to reflect such
modification.

      

      
        1.7            Base
Rent and Other Monies Paid Upon Execution:

      

      
         (a)    Base Rent:
$11,229.20   for the period June   1   -   June   30,    2007______

                        
(b)    Common Area Operating
Expenses:  $ 4,
022.40*  for the period June 1 – June 30, 07.

                        
(c)    Security
Deposit: $26,
673.53________  ("Security Deposit"). (See also
Paragraph 5)

      

      
         (d)    Other:
$ _____________________for  ___________________________.

      

      
         (e)    Total Due Upon Execution of
this Lease: $41, 925.13.

      

      
        *
(Estimate)

      

      
 

      
        
          
             

          

          
            
            

             

            
              	 	 	PAGE 1 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

             

          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      1.8           
Agreed Use: General office, assembly,
storage and distribution of electric
vehicles                                                                                                                                                                                                                                     

        
          ______________________________________________________________________(See
also Paragraph G)

        

        
          1.9           Insuring
Party.  (Lessor is the) "Insuring Party". (See also Paragraph
8)

        

        
          1.10         Real
Estate Brokers:  (See also Paragraph 15)

        

        
            (a)        Representation:  The
following real estate brokers (the "Brokers") and brokerage relationships exist in
this transaction (check applicable boxes):
[x ] CB   Richard  Ellis   -   Desper/Spatafore 
represents Lessor exclusively ("Lessor's
Broker");

        

        
          [x ]  Lee  &   Associates   -  Hirsch/Schafer     represents
Lessee exclusively ("Lessee's Broker");
or

        

        
          [ 
 ]______________________________________  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 Brokers the brokerage fee agreed to in a
separate written agreement (or if there is no such agreement the sum of
__________________or ______________% of the total Base Rent for the
brokerage  services rendered by the Brokers).

        

        
          1.11          Guarantor.   The
obligations of the Lessee under this Lease are to be guaranteed
by   Ki   Yong  Nam
("Guarantor").  (See
also Paragraph 37)

        

        
          1.12         Attachments. Attached hereto
are the following, all of which constitute a part of this Lease: [x] an Addendum consisting of Paragraphs 52                                     through
53                             ;

        

        
          [ ] a
site plan depicting the Premises;

        

      

      
        [ ] a
site plan depicting the Project;

      

      
        [ ] a
current set of the Rules and Regulations for the Project;

      

      
        [ ] a
current set of the Rules and Regulations adopted by the owners'
association.

      

      
        [ ] a
Work Letter,

      

      
        [ ] other
(specify);
_____________________________________________________________________________________________________________________________________________________________________________

      

      
        

      

      
        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 upon all 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 Rent, is an approximation
which the Parties agree is reasonable and any
payments based thereon are not subject to revision whether or not the actual
size is more or less.    NOTE: Lessee is advised to verify the actual
size prior to executing this Lease.

      

      
        2.2            Condition.  Lessor
shall deliver that portion of the Premises contained within the
Building  ("Unit") to Lessee
broom clean and free of debris on the Commencement Date or the Early Possession
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 and
in effect within thirty days following the Start Date, warrants that the
existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating
and air conditioning systems   ("HVAC"), loading doors, sump pumps, if any,
and all other such elements in the Unit, other than those constructed by Lessee,
shall be in good operating condition on said date, that the structural elements
of the roof, bearing walls and foundation of the Unit shall be free of material
defects, and that the Unit does not contain hazardous levels of any mold or
fungi defined as toxic under applicable state or federal law. If a
non-compliance with such warranty exists as of the Start Date, or if one of such
systems or elements should malfunction or fail within the appropriate warranty
period, Lessor shall, as Lessor's sole obligation with respect to such matter,
except as other wise provided in this Lease, promptly alter receipt of
written notice from Lessee setting forth with specificity the nature and extent
of such non-compliance, malfunction or failure, rectify same at Lessor's
expense.   The warranty periods shall be as follows: (i) 6 months
as to the HVAC systems, and (ii) 30 days as to the remaining systems and other
elements of the Unit.   If Lessee does not give Lessor the
required notice within
the appropriate warranty period, correction of any such non-compliance,
malfunction or failure shall be the obligation of the Lessee at Lessee's sole
cost and expense (except for the repairs to the fire sprinkler systems, roof,
foundations, and/or bearing walls - see Paragraph 7).

      

      
        2.3            Compliance. Lessor warrants
that to the best of its knowledge the improvements on the Premises and the
Common Areas comply with the building codes that were in effect at the time that
each such improvement, or portion thereof, was constructed, and also with all
applicable laws, covenants or restorations of record, regulations, and
ordinances in effect on the Start Date ("Applicable Requirements"). Said warranty does
not apply to the use to which Lessee will put the Premises, modifications which
may be required by the Americans with Disabilities Act or any similar laws as a
result of Lessee's use (see Paragraph 49), or to any Allegations 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 Applicable Requirements and especially the zoning are
appropriate (or Lessee'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 Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify the same at
Lessor's expense.   If Lessee does not give Lessor written notice
of a non-compliance with this warranty within 6 months following the Start Date,
correction of that non-compliance shall to the obligation of Lessee at Lessee's
sole cost and expense.  If the Applicable Requirements are herefter
changed so as to require during the term of this Lease the construction of an
addition to or an alteration of the Unit, Premises and/or Building, the
remediation of any Hazardous Substance, or the reinforcement or other physical
modification of the Unit, Premises and/or Building ("Capital Expenditure"), Lessor and Lessee
shall allocate the cost of such work as follows:

      

      
               

      

      
                 

      

      
        
          
            
            

             

            
              	 	 	PAGE 2 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

             

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                   
(a)            Subject
to Paragraph 2.3(c) below, if such Capital 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 Capital Expenditure is required during the last 2
years of this Lease and the cost thereof exceeds 6 months' Base Rent, Lessee may
instead terminate this Lease unless Lessor notifies Lessee, in writing, within
10 days after receipt of Lessee's termination notice that Lessor has elected to
pay the difference between the actual cost thereof and the amount equal to 6
months' Base Rent. If Lessee elects termination, Lessee shall immediately cease
the use of the Premises which requires such Capital Expenditure and deliver to
Lessor written notice specifying a termination date at least 90 days thereafter.
Such termination date shall, however, in no event to earlier than the last day
that Lessee could 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 shall pay for such Capital Expenditure and Lessee
shall only be obligated to pay, each month during the remainder of the term of
this Lease, on the date that on which the Base Rent is due, an amount equal to
144th of the portion of such costs reasonably attributable to the Premises.
Lessee shall pay interest on the balance but may prepay its obligation at
any time. If, however, such Capital Expenditure is required during the last 2
years of this Lease or if Lessor reasonably determines that it is not
economically feasible to pay its share thereof, Lessor shall have the option to
terminate this Lease upon 90 days prior written notice to Lessee unless Lessee
notifies Lessor, in writing, within 10 days after receipt of Lessor'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 on
an offset basis, Lessee shall have the right to terminate this Lease upon 30
days written notice to
Lessor.

        
(c)             Notwithstanding
the above, the provisions concerning Capital Expenditures are intended to apply
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
intensely of use, or modification to the Premises then, and in that event,
Lessee shall either (i) immediately cease such changed use or intensity of use
and/or take such other steps as may be necessary to eliminate the requirement
for such Capital Expenditure, or (ii) complete such Capital Expenditure at its
own expense. 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 with respect 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 the
Americans with Disabilities Act), and their suitability for Lessee's intended
use, (b) Lessee has made such investigation as it deems necessary with reference
to such mailers and assumes all responsibility therefore as the same relate to
its occupancy of the Premises, and (c) neither Lessor, Lessor's agents, nor
Brokers have 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; (i) Brokers have made no representations, promises or
warranties concerning Lessee's ability to honor the Lease or suitability to
occupy the Premises, and (ii) 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  immediately prior to
the Start Date Lessee was the owner or occupant of the Premises.  In
such event, Lessee shall be responsible for any necessary connective
work.  2.6        
Vehicle Parking. Lessee
shall be entitled to use the number of parking spaces specified in Paragraph
1.2(b) on these portions of the Common Areas designated from time to time by
Lessor for parking. Lessee shall not use more parking spaces than said number.
Said parking spaces shall be used for parking by vehicles no larger than
full-size passenger automobiles or pick-up trucks, herein
called   "Permitted Size
Vehicles". Lessor may regulate the loading and unloading to vehicles
by adopting Rules and Regulations as provided in Paragraph 2.9.  No
vehicles other than Permitted Size Vehicles may be parked in the Common Area
without the prior whiten permission of Lessor. In
addition:

        

      

      
               
(a)            Lessee
shall not permit or allow any vehicles that belong to or are controlled by
Lessee or Lessee's employees, suppliers, shippers, customers, contractors or
invitees to be loaded, unloaded, or parked in areas other than those designated
by Lessor for such activities.

      

      
               
(b)            Lessee
shall not service or store any vehicles in the Common Areas.

      

      
               
(c)             If
Lessee permits or allows any of the prohibited activities described in this
Paragraph 2.6, then Lessor shall have the right, without notice, in addition to
such other rights and remedies that it may have, to remove or tow away the
vehicle involved and charge the cost to Lessee, which cost shall to immediately
payable upon demand by Lessor.

      

      
        2.7          
Common Areas - Definition. The term "Common Areas" is
defined as all areas and facilities outside the Premises and within the exterior
boundary line of the Project and interior utility raceways and installations
within the Unit that are provided and designated by the Lessor from lime to time
for the general non-exclusive use of Lessor, Lessee and other tenants of the
Project and their respective employees, suppliers, shippers, customers,
contractors and invitees, including parking areas, loading and unloading areas,
trash areas, roadways, walkways, driveways and landscaped
areas.

      

      
        2.8           Common
Areas - Lessee's Rights. Lessor grants to Lessee, for the benefit of
Lessee and its employees, suppliers, shippers, contractors, customers and
invitees, during the term of this Lease, the non-exclusive right to use. In
common with others entitled to such use, the Common Areas as they exist from
time to time, subject to any rights, powers, and privileges reserved by Lessor
under the terms hereof or under the terms to any rules and regulations or
restrictions governing the use of the Project. Under no circumstances shall the
right herein granted to use the Common Areas be deemed to include the right to
store any property, temporarily or permanently, in the Common Areas. Any such
storage shall be permitted only by the prior written consent of Lessor or
Lessor's designated agent, which consent may be revoked at any time. In the
event that any unauthorized storage shall occur then Lessor shall have the
right, without notice, in addition to such other rights and
remedies that it may have, to remove the properly and charge the cost to Lessee,
which cost shall be immediately payable upon demand by
Lessor.

      

       

      
        
          
            
            

             

            
              	 	 	PAGE 3 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

             

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          
            2.9           Common
Areas - Rules and Regulations, Lessor or such other person(s) as Lessor
may appoint shall have the exclusive control and management of the Common Areas
and shall have the right, from time to time, to establish, modify, amend and
enforce reasonable rules and regulations ("Rules and Regulations") for the
management, safety, care, and cleanliness of the grounds, the parking and
unloading of vehicles and the preservation of good order, as well as for the
convenience of other occupants or tenants of the Building and the Project and
their invitees, Lessee agrees to abide by and conform to all such Rules and
Regulations, and shall use its best efforts to cause its employees, suppliers,
shippers, customers, contractors and invitees to so abide and conform.
Lessor shall not be responsible to Lessee for the non-compliance with said Rules
and Regulations by other tenants of the Project.

          

          
            2.10         Common
Areas - Changes. Lessor shall have the
right, in Lessor's sole discretion, from time to time:

          

          
            (a)            To
make changes to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces,
parking areas, loading and unloading areas, ingress, egress, direction of
traffic, landscaped areas, walkways and utility raceways;

          

          
            (b)           
To close temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available;

          

          
            (c)            To
designate other land outside the boundaries of the Project to be a part of the
Common Areas;

          

          
            (d)            To
add additional buildings and improvements to the Common
Areas;

          

          
            (e)            To
use the Common Areas while engaged in making additional improvements, repairs or
alterations to the Project, or any portion thereof; and

          

          
                           
(f)             To
do and perform such other acts
and make such other changes in, to or with respect to the Common Areas and
Project as Lessor may, in the exercise of sound business judgment, deem to be
appropriate.

          

        

        
          
            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, the obligation 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 Lessee's Share of Common Area Operating
Expenses, Real Property Taxes and insurance premiums and to maintain the
Premises) shall 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 to Lessee by the Commencement Date. If, despite said
efforts, Lessor is unable to deliver possession as agreed, Lessor shall not be
subject to any liability therefore, nor shall such failure affect the validity
of this Lease or change the Expiration Date. Lessee shall not, however, be
obligated to pay Rent or perform its other obligations until Lessor delivers
possession of the Promises and any period of Rent abatement that Lessee would
otherwise have enjoyed shall run from the date of the delivery of possession and
continue for a period equal to what Lessee would otherwise have enjoyed, but
minus any days of delay caused by the acts or omissions of Lessee. If possession
is not delivered within 60 days after the Commencement Date, Lessee may, at its
option, by notice in writing within 10 days after the end of such 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 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 would otherwise 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. If possession of the Premises is not
delivered within 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 complies with its obligation 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,
notwithstanding Lessor'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 elect to 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) are deemed to
be rent ("Rent").

          

        

      

             
4.2            Common
Area Operating Expenses.   Lessee shall pay to Lessor during
the term hereof, in addition to the Base Rent, Lessee's Share (as specified
in Paragraph 1.6) of all Common Area Operating Expenses, as hereinafter defined,
during each calendar year of the term of this Lease, in accordance with the
following provisions:

      
                
(a)            "Common
Area Operating Expenses"   are defined, for purposes of
this Lease, as all costs incurred by Lessor rotating to the ownership and
operation of the Project, including, but not limited to, the
following:

      

      
        (i)              The
operation, repair and maintenance, in neat, clean, good order and condition ,
and if necessary, the replacement, of the following:

         (aa)          The  Common
Areas and Common  Area
improvements,  including  parking areas,  loading
and unloading areas, trash areas, roadways, parkways, walkways, driveways,
landscaped areas, bumpers, irrigation systems, Common Area lighting localities,
fences and gates, elevators, roofs, and roof drainage
systems.

      

      
         (bb)          Exterior
signs and any tenant directories.

      

      
         (cc)          Any 
fire sprinkler systems.

      

       

      
        
          
            
              	 	 	PAGE 4 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        
          
            (ii)             The
cost of water, gas, electricity and telephone to service the Common Areas and
any utilities not separately metered.

          

          
            (iii)            The
cost of trash disposal, pest control services, property management, security
services, owners' association dues and fees, the cost to repaint the
exterior of any structures and the cost to any environmental
inspections.

          

          
            (iv)            Reserves
set aside for maintenance,   repair and/or
replacement  of Common Area
improvements  and equipment.

          

          
            (v)             Real
Property Taxes (as defined in Paragraph 10).

          

          
            (vi)            The
cost to the premiums for the insurance maintained by Lessor pursuant to
Paragraph 6.

          

          
            (vii)           Any
deductible portion of an insured loss concerning the Building or the Common
Areas.

          

          
            (viii)          Auditors',
accountants' and attorneys' fees and costs related to the operation,
maintenance, repair and replacement of the Project.

          

          
            (ix)            The
cost of any capital improvement to the Building or the Project not covered under
the provisions of Paragraph 2.3 provided; however, that Lessor shall
allocate the cost of any such capital improvement over a 12 year period and
Lessee shall not be required to pay more than Lessee's Share of 1/144th of the
cost of such capital improvement in any given month.

          

          
              
(x)             
The cost of any other services to be provided by Lessor that are stated
elsewhere in this Lease to be a Common Area Operating
Expense.

          

          
            (b)            Any
Common Area Operating Expenses and Real Property Taxes that are specifically
attributable to the Unit, the Building or to any other building in the
Project or to the operation, repair and maintenance thereof, shall be allocated
entirely to such Unit, Building, or other building. However, any Common Area
Operating Expenses and Real Property Taxes that are not specifically
attributable to the Building or to any other building or to the operation,
repair and maintenance thereof, shall be equitably allocated by Lessor to all
buildings in the Project.

          

          
            (c)            The
inclusion of the improvements, facilities and services set forth in subparagraph
4.2(a) shall not be deemed to impose an obligation upon Lessor to
either have said improvements or facilities or to provide those services unless
the Project already has the same, Lessor already provides the services, or
Lessor has agreed elsewhere in this Lease to provide the same or some of
them.

          

          
            (d)            Lessee's
Share to Common Area Operating Expenses is payable monthly on the same day
as the Base Rent is due hereunder. The amount of such payments shall be based on
Lessor's estimate of the annual Common Area Operating Expenses, within 60 days
after written request (but not more than once each year) Lessor shall deliver to
Lessee a reasonably detailed statement showing Lessee's Share of the actual
Common Area Operating Expenses incurred during the preceding year. If Lessee's
payments during such year exceed Lessee's Share, Lessor shall credit the amount
of such over-payment against Lessee's future payments. If Lessee's payments
during such year were less than Lessee's Share, Lessee shall pay to Lessor the
amount of the deficiency within 10 days after delivery by Lessor to Lessee to
the statement.

          

          
            (e)            Common
Area Operating Expenses shall not include any expenses paid by any tenant
directly to third parties, or as to which Lessor is otherwise reimbursed by any
third party, other tenant, or insurance proceeds.

          

        

        
          
            4.3            Payment.
  Lessee shall cause payment of Rent to be received by Lessor
in lawful money to the United States, without offset or deduction (except as
specifically permitted in this Lease), on or before the day on which it is due.
All monetary amounts shall be rounded to the nearest whole dollar. In the event
that any invoice prepared by Lessor is inaccurate, such inaccuracy shall not
constitute a waiver and Lessee shall be obligated to pay the amount set forth in
this Lease. Rent for any period during the term hereof which is (or less than
one full calendar 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 that
is 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. In the event that
any check, draft, or other instrument of payment given by Lessee to Lessor is
dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in
addition to any Late Charge and Lessor, at its option, may require all future
Rent to paid by cashier's check. Payments will be applied first to accrued late
charges and attorney's fees, second to accrued interest, then to Base Rent and
Common Area Operating Expenses, and any remaining amount to any other
outstanding charges or costs.

          

          
            5.              Security
Deposit. Lessee shall deposit with Lessor upon execution hereof the
Security Deposit as security for Lessee's faithful performance of its
obligations under 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 already due Lessor, for Rents
which will be due in the future, and/ or to reimburse or compensate Lessor for
any liability, expense, loss or damage which Lessor may suffer or incur by
reason thereof. If Lesser uses or applies all or any portion of the Security
Deposit, Lessee shall within 10 days after written request therefore deposit
monies with Lessor 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 the total 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 the business 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 Premises may 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 such additional monies with Lessor
as shall be sufficient to cause the Security Deposit to be at a commercially
reasonable level based on such change in financial condition. Lessor shall not
be required to keep the Security Deposit separate from its general accounts.
Within 90 days after the expiration
or termination of this Lease, Lesser 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 paid by 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 comparable thereto, 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
occupants of or causes damage to neighboring premises or properties. Other than
guide, signal and seeing  eye dogs, Lessee shall not keep or allow in
the Premises any pets, animals, birds, fish, or reptiles. 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 Building or the mechanical or electrical systems
therein, and/or is not significantly more burdensome to the Project. If Lessor
elects to withhold consent, Lessor shall within 7 days after such request give
written notification of same, which notice shall include an explanation of
Lessor's objections to the change in the Agreed
Use.

          

        

      

      
        6.2            Hazardous
Substances.

      

      
            (a)             Reportable
Uses Require Consent. The term "Hazardous Substance" as used in this
Lease shall mean any product, substance, or waste whose presence, use,
manufacture, disposal, transportation, or release, either by itself or in
combination with other materials expected to 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
third party 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 any activity in or on the Promises 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. "Reportable Use" 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 a report, 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 to given 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, ordinary office
supplies (copier toner, liquid paper, glue, etc.) and common household cleaning
materials, so long as such use is in compliance with the  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 therefore. 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/or liability,
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.

      

      
         

      

      
        
          	 	 	PAGE 5 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                  INITIALS 

                

          
            	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                       
      FORM MTN-G-3/0GE 

                  

          

           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

            
              
                (b)             Duty
to Inform Lessor.
If Lessee knows, or has reasonable cause to believe, that a Hazardous 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
be spilled or released in, on, under, or about the Premises (including through
the plumbing or sanitary sewer system) and shall promptly, at Lessee's expense,
comply with all Applicable Requirements and take all investigatory and/or
remedial action reasonably recommended, whether or not formally ordered or
required, for the cleanup of any contamination to, 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 or involving 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 to or
involving any Hazardous Substance brought onto the Premises by or for Lessee, or
any third party (provided, however, that Lessee shall have no liability under
this Lease with respect to underground migration of any Hazardous Substance
under the Premises from areas outside of the Project not caused or contributed
to by Lessee). 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 this Lease 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 are suffered as a direct result of Hazardous Substances on the Premises
prior to Lessee taking possession or which are caused by the gross negligence or
willful misconduct of Lessor, its agents or employees. Lessor's obligations, as
and when required by its 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 Remediation.  Lessor shall retain the responsibility
and pay for any investigations or remediation measures required by
governmental entities having jurisdiction with respect to the existence of
Hazardous Substances on the Premises prior to the Lessee taking possession,
unless such remediation measure is required as a result 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 the request 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 (see
Paragraph 9.1(e)) occurs during the term of this Lease, unless Lessee is legally
responsible therefore (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's expense, in which event this Lease shall
continue in full force and effect, or (ii) if the estimated cost to remediate
such condition exceeds 12 times the then monthly Base Rent or $100,000,
whichever is greater, give written notice to Lessee, within 30 days after
receipt by Lessor of knowledge of the occurrence of such Hazardous Substance
Condition, of Lessor's desire to terminate this Lease as of the date 60 days
following the date of such notice. In the event Lessor elects to give a
termination notice, Lessee may, within 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 Condition exceeds an amount equal to 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 30 days
following such commitment. In such event, 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 or assurance 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, at Lessee'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's engineers and/or consultants which relate in any manner to
such Requirements, without regard to whether said Requirements are now in
effect or become effective after the Start Date, Lessee shall, within 10 days
after receipt of Lessor's written request, provide Lessor with copies to all
permits and other documents, and other information evidencing Lessee's
compliance with any Applicable Requirement specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (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. Likewise, Lessee shall
immediately give written notice to Lessor of: (i) any water damage to the
Premises and any suspected seepage, pooling, dampness or other condition
conducive to the production of mold; or (ii) any mustiness or other odors that
might indicate the presence of mold in the Premises.

                  

                  
                        6.4            Inspection; Compliance. Lessor and Lessor's "Lender" (as defined in
Paragraph 30) and consultants shall have the right to enter into Premises
at any time, in the case of an emergency, and otherwise at reasonable times
after reasonable notice, 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 Hazardous Substance Condition (see Paragraph 9.1)
is found to exist or be imminent, or the inspection is requested or ordered by a
governmental authority. In such case, Lessee shall upon request reimburse Lessor
for the cost of such inspection, so long as such inspection is reasonably
related to the violation or contamination. In addition, Lessee shall provide
copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days
to the receipt of written request therefore.

                    
                      	 	 	PAGE 6 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                              INITIALS 

                            

                      
                        	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                                   
      FORM MTN-G-3/0GE 

                              

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                  
                    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 (intended for Lessee's exclusive use,
no matter where located), and Alterations 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 as a result of Lessee's use, any prior
use, the elements or the age of such portion of the Premises), including, but
not limited to, all equipment or facilities, such as plumbing, HVAC equipment,
electrical, lighting facilities, boilers, pressure vessels, fixtures, interior
walls, interior surfaces of exterior walls, ceilings, floors, windows, doors,
plate glass, and skylights but excluding any items which are the responsibility
of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good
order, condition and repair, shall exercise and perform good maintenance
practices, specifically including the procurement and maintenance at 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.

              

            

          

        

      

      
        (b)             Service
Contracts. Lessee
shall, at Lessee's sole expense, procure and maintain contracts, 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) HVAC equipment, (ii) boiler
and pressure vessels, and (iii) clarifiers. However, Lessor reserves the right,
upon notice to Lessee, to procure and maintain any or all of such service
contracts, and Lessee shall reimburse Lessor, upon demand, for the cost
thereof.
            (c)             Failure
to
Perform. If
Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor
may enter upon the Premises after 10 days' prior written notice to Lessee
(except in the case of an emergency, in which case no notice shall be required),
perform such obligations on Lessee's behalf, and put the Premises in good order,
condition and repair, and Lessor shall promptly pay to Lessor a sum equal to
115% of the cost thereof.

      

      
        (d)            Replacement.
Subject to Lessee's indemnification of Lessor as set forth in Paragraph 8.7
below, and without relieving Lessee of liability resulting from Lessee's failure
to exercise and perform good maintenance practices, if an item described in
Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of
50% of the cost of replacing such item, then such item 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 the remainder of the term of
this Lease, on the data 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 144 (i.e. 1/144th of the cost
per month). Lessee shall pay Interest on the unamortized balance but may prepay
its obligation at any time.

      

      
        7.2            Lessor's
Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance), 4.2 (Common Area Operating Expenses), 6 (Use), 7.1 (Lessee's
Obligations), 9 (Damage or Destruction) and 14 (Condemnation), Lessor, subject
to reimbursement pursuant to Paragraph 4.2, shall keep in good order, condition
and repair the foundations, exterior walls, structural condition of interior
bearing walls, exterior roof, fire sprinkler system, Common Area fire alarm
and/or smoke detection systems, fire hydrants, parking lots, walkways, parkways,
driveways, landscaping, fences, signs and utility systems serving the Common
Areas and all parts thereof, as well as providing the services for which there
is a Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall not
be obligated to paint the exterior or interior surfaces of exterior walls nor
shall Lessor be obligated to maintain, repair or replace windows, doors or plate
glass of the Premises. Lessee expressly waives the benefit of any statute now or
hereafter in effect to the extent it is inconsistent with the terms to this
Lease.

      

      
        7.3           
Utility Installations; Trade Fixtures: Alterations.

      

      
        (a)            Definitions.   The
term "Utility Installations" refers to all floor and window coverings, air
and/or vacuum lines, power panels, electrical distribution, security and fire
protection systems, communication cabling, lighting fixtures, HVAC equipment,
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 "Allocations" 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 defined as Alterations and/or Utility Installations made by Lessee that are
not yet owned by Lessor pursuant to Paragraph 7.4(a).

      

      
        (b)            Consent.   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, will not affect the electrical, plumbing, HVAC, and/or life
safety systems, and the cumulative cost thereof during this Lease as extended
does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum
equal to one month's Base Rent in any one year. Notwithstanding the foregoing,
Lessee shall not make or permit any roof penetrations and/or install anything on
the roof without the prior written approval of Lessor. Lessor may, as a
precondition to granting such approval, require Lessee to utilize a contractor
chosen and/or approved by Lessor. Any Alterations or Utility Installations that
Lessee shall desire to make and 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 with copies 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 Alienations or Utility Installations 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 in excess of one month's Base Rent, Lessor may
condition its consent upon Lessee providing a lien and completion bond in an
amount equal to 150% of the estimated cost of such Alteration or Utility
Installation and/or upon Lessee's posting an additional Security Deposit with
Lessor.

      

      
        	 	 	PAGE 7 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                INITIALS 

              

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GE 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

                      
 (c)             Liens;
Bonds.  Lessee shall pay, when due, all claims for labor or
materials furnished 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 material man’s lien against the Premises or any interest herein. Lessee shall
give Lessor not less than 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
or demand, 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 shall require, Lessee shall furnish a surety bond in an amount equal to
150% of 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, Lessee shall pay Lessor's attorneys’ fees and costs.

      

      
        7.4          
Ownership; Removal; Surrender; and Restoration.

      

      
        (a)          Ownership.
Subject to Lessor'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 in writing to be the owner of 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 expiration or 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 90 and not
later than 30 days prior to the end of the term of this Lease, Lessor may
require that any or all Lessee Owned Allegations or Utility Installations be
removed by the expiration or termination of this Lease, Lessor may require the
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
or any 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. Notwithstanding the foregoing, if this
Lease is for 12 months or less, then Lessee shall surrender the Premises in the
same condition as delivered to Lessee on the Start Date with NO allowance for
ordinary wear and tear. Lessee shall repair any damage occasioned by the
installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations
and/or Utility Installations, furnishings, and equipment as well as the
removal of any storage tank installed by or for Lessee. Lessee shall also
completely remove from the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party (except Hazardous
Substances which were deposited via underground migration from areas outside of
the Project) even if such removal would require Lessee to perform or pay for
work that exceeds statutory requirements. Trade Fixtures shall remain the
property of Lessee and shall be removed by Lessee. Any personal property of
Lessee not removed on or before the Expiration Date or any earlier termination
date shall be deemed to have been abandoned by Lessee and may be disposed of or
retained by Lessor as Lessor may desire. 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 provisions of
Paragraph 26 below.

      

      
        8.              Insurance;
Indemnity.

      

      
        8.1          Payment
of Premiums. The cost of the premiums for the insurance policies required
to be carried by Lessor, pursuant to Paragraphs 8.2(b), 8.3(a) and 8.3(b), shall
be a Common Area Operating Expense. Premiums for policy periods commencing prior
to, or extending beyond, the term of this Lease  shall be prorated to
coincide with the corresponding Start Date or Expiration
Date.

      

      
        8.2         Liability
Insurance.

      

      
                       
(a)          Carried by
Lessee.  Lessee shall obtain and keep in force a Commercial
General Liability policy of insurance prelisting Lessee and Lessor as on
additional insured 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 all areas appurtenant thereto. Such insurance
shall be on an occurrence basis providing single limit coverage in an amount not
less than $I,000,000 per occurrence with an annual aggregate of not less than
$2,000,000. Lessee shall add Lessor as an additional insured by means of an
endorsement at least as broad as the Insurance Service Organization's
"Additional Insured Managers or Lessors of Premises" Endorsement. 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 of Lessee or relieve Lessee of any obligation hereunder. Lessee shall
provide an endorsement on its liability policy(ies) which provides that its
insurance 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 liability insurance as
described in Paragraph 0.2(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. Lessor shall obtain and keep in force a policy or
policies of insurance in the name of Lessor, with loss payable to Lessor,
any ground-Lessor, and to any Lender insuring loss or damage to the Premises.
The amount of such insurance shall be equal to the full insurable replacement
cost of the Premises, as the same shall exist from time to time, or the amount
required by any Lender, but in no event more than the commercially reasonable
and available insurable value thereof. Lessee Owned Alterations and Utility
Installations, Trade Fixtures, and Lessee's personal property shall be insured
by Lessee under Paragraph 8.4. If the coverage is available and commercially
appropriate, such policy or policies shall insure against all risks 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 Requirement 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 provision in lieu of
any coinsurance clause, waiver of subrogation, and inflation guard protection
causing an increase in the annual properly insurance coverage amount by a factor
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 not exceed $1,000 per occurrence.

      

      
        (b)            Rental
Value.  Lessor shall also obtain and keep in force a policy or
policies in the name of Lessor with loss payable to Lessor and any Lender,
insuring the loss of the full Rent for one year with an extended period of
indemnity for an additional 180 days ("Rental
Value Insurance").   Said insurance shall contain
an agreed valuation provision in 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 12 month period.

      

      
        (c)            Adjacent
Premises. Lessee shall pay for any increase in the premiums for the
property insurance of than Building and for the Common Areas or other buildings
in the Project if said increase is caused by Lessee's acts, omissions, use or
occupancy of the Premises.

      

      
        (d)             Lessee's
Improvements. Since Lessor is the Insuring Party, Lessor shall not be
required to insure Lessee Owned Allegations and Utility Installations unless its
Item in question has become the property of Lessor under its terms of this
Lease.

      

      
        8.4            Lessee's
Property; Business Interruption Insurance.

      

      
        (a)           
Property Damage.   Lessee shall obtain and maintain
insurance coverage on all of Lessee's personal properly, 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 per
occurrence.   The proceeds from any such insurance shall be
used by Lessee for the replacement to personal property, Trade Fixtures
and Lessee Owned Alterations and Utility Installations. Lessee shall provide
Lessor with written evidence that such insurance is in
force.

      

      
        
          
             

          

          
            
            

             

            
              	 	 	PAGE 7 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

             

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                             
(b)             Business
Interruption. Lessee shall obtain and maintain loss of income and extra
expense insurance in amounts as will reimburse Lessee for direct or indirect
loss of earnings attributable to all perils commonly insured against by prudent
lessees in the business of Lessee or attributable to prevention of access to the
Premises as a result of such perils.

      
        (c)             No
Representation of Adequate Coverage. Lessor makes no representation that
the limits or forms to coverage of insurance specified herein are adequate to
cover Lessee's properly, 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 state where the Premises are
located, and maintaining during the policy term a "General Policyholders Rating"
of at least A-, VI, as set forth in the most current issue of "Best's Insurance
Guide", or such other rating as may be required 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 to
policies of such insurance or certificates evidencing the existence and amounts
of the required insurance. No such policy shall be cancelable or subject to
modification except after 30 days prior written notice to Lessor. Lessee shall,
at least 10 days prior to the 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 thereat to Lessee, which
amount shall be payable by Lessee to 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, other 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 the perils 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 damage insurance
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 hold harmless 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 upon notice 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 and its Agents from Liability.   Notwithstanding
the negligence or breach of this Lease by Lessor or its agents, neither Lessor
nor its agents shall to liable under any circumstances for: (i) 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 steam,
electricity, gas, water or rain, indoor air quality, the presence of mold
or from the breakage, leakage, obstruction or other defects to 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 the Premises or upon other portions of the Building, or from other sources
or places, (ii) any damages arising from any act or neglect of any other tenant
of Lessor or from the failure of Lessor or its agents to enforce the
provisions of any other lease in the Project, or (iii) injury to Lessee's
business or for any loss of income or profit therefore. Instead, it is intended
that Lessee's sole recourse in the event of such
damages or injury to file a claim on the insurance policy(ies) that Lessee
is required to maintain pursuant to the provisions of paragraph
8.

      

      
        8.9            Failure
to Provide Insurance.    Lessee acknowledges that any
failure on its part to obtain or maintain the insurance required herein will
expose Lessor to risks and potentially cause Lessor to incur costs not
contemplated by this Lease, the extent of which will be extremely difficult to
ascertain. Accordingly, for any month or portion thereof that Lessee does not
maintain the required insurance and/or does not provide Lessor with the required
binders or certificates evidencing the existence of the required insurance, the
Base Rent shall be automatically increased, without any requirement for notice
to Lessee, by an amount equal to 10% of the then existing Base Rent or $100,
whichever is greater. The parties agree that such increase in Base Rent
represents fair and reasonable compensation for the additional risk/costs that
Lessor will incur by reason of Lessee's failure to maintain the required
insurance. Such increase in Base Rent shall in no event constitute a waiver of
Lessee's Default or Breach with respect to the failure to maintain such
insurance, prevent the exercise of any of the other rights and remedies granted
hereunder, or relieve Lessee of its obligation to maintain the Insurance
specified in this Lease.

      

      
        9.              Damage
or Destruction.

                        
9.1            Definitions.

      

      
         
(a)            "Premises
Partial Damage" shall mean damage or destruction to the improvements on
the Premises, other than Lessee Owned Alterations and Utility
Installations, which can reasonably be repaired in 3 months or less from the
date of the damage or destruction, and the cost thereof does not exceed a
sum equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within
30 days from the date of the damage or destruction as to whether or not the
damage is Partial or Total. Notwithstanding the foregoing, Premises Partial
Damage shall not include damage to windows, doors, and/or other similar items
which Lessee has the responsibility to repair or replace pursuant to the
provisions to Paragraph 7.1.

      

      
          (b)            "Premises
Total Destruction" shall mean damage or destruction to the improvements
on the Premises, other than Lessee Owned Alterations and Utility Installations
and Trade Fixtures, which cannot reasonably be repaired in 3 months or less from
the date of the damage or destruction and/or the cost thereof exceeds a sum
equal to 6 month's Base Rent. Lessor shall notify Lessee in writing within 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 limits involved.

      

      
         
(d)            "Replacement
Cost" shall mean the cost to 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 to Applicable Requirements, and without deduction or
depreciation.

      

      
         
(e)             "Hazardous Substance Condition"
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 which requires repair, remediation, or
restoration.

                     

          
             

          

          
            
            

             

            
              	 	 	PAGE 8 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

            

            
              
                
                   

                

                
                   

                  
                    

                  

                

                
                   

                

              

            

                    9.2            Partial
Damage - Insured
Loss. If a Premises Partial Damage that is an Insured Loss occurs, then
Lessor shall, at Lessor's expense, 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, at Lessor'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 that purpose. 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 as and when required to complete said repairs. In the
event, however, such shortage was due to the fact that, by reason to the unique
nature to the improvements, full replacement cost insurance coverage was not
commercially 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
adequate assurance thereof, within 10 days following receipt of written notice
of such shortage and request therefore. If Lessor receives said funds or
adequate assurance thereof within said 10 day period, the party responsible for
making the repairs 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 10
days thereafter to: (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 (ii) have this Lease terminate 30 days
thereafter. Lessee shall 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 some insurance coverage, but the net proceeds
of any such insurances 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 or willful act of Lessee (in which
event Lesser 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 force and effect, or (ii) terminate this
Lease by giving written notice to Lessee within 30 days after receipt by
Lessor of knowledge of the occurrence to such damage. Such termination shall be
effective 60 days following the date of such notice. In the event Lessor elects
to terminate this Lease, Lessee shall have the right within 10 days after
receipt of the termination notice to give written notice to Lessor to Lessee's
commitment to pay for the repair of such damage without reimbursement from
Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance
thereof within 30 days after making such commitment. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed 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 Lease shall terminate 60 days following
such Destruction.   It 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 provided in Paragraph
8.6.

      

      
        9.5            Damage
Near End of Term. If at any time during the last 6 months of this Lease
there is damage for which the cost of repair exceeds one month's Base Rent,
whether or not an Insured Loss, Lessor may terminate this Lease effective 60
days following the date of occurrence of such damage by giving a written
termination notice to Lessee within 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 Lesser may
preserve this Lease by, (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 10 days after
Lessee's receipt of Lessor's written notice purporting to terminate this Lease,
or (ii) the day prior to the date upon which such option expires. If Lessee duly
exercises such option during such period and provides Lessor with funds (or
adequate assurance thereof) 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 fails to exercise 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 Total Destruction 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 to such damage shall to abated in proportion
to the degree 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 for any such damage, destruction,
remediation, repair or restoration except as provided herein.

      

      
        (b)            Remedies.
If Lessor is obligated to repair or restore the Premises and does not commence,
in a substantial and meaningful way, such repair or restoration within 90 days
after such obligation shall accrue, Lessee may, at any time prior to the
commencement of such repair or restoration, give written notice 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 60 days following the giving of such notice.
If Lessee gives such notice and such repair or restoration is not commenced
within 30 days thereafter, this Lease shall terminate as of the date specified
in said notice. If the repair or restoration is commenced within such 30 days,
this Lease shall continue in full force and effect. "Commence" shall mean either
the unconditional authorization of the preparation to the required plans, or the
beginning of the actual work on the Promises, 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 concerning advance Base Rent and any other
advance payments made by Lessee to Lessor. Lessor shall, in addition, return to
Lessee so much to Lessee's Security Deposit as has not been, or is not then
required to be, used by Lessor.

      

      
        10.         
Real Property Taxes.

      

      
        10.1          Definition.
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 estate taxes);
improvement bond; and/or license fee imposed upon or levied against any legal or
equitable interest of Lessor in the Project, Lessor's right to other income
there from, and/or Lessor's business of leasing, by any authority having the
direct or indirect power to tax and where the funds are generated with reference
to the Project address and where the proceeds so generated are to be
applied by the city, county or other local taxing authority of a jurisdiction
within which the Project is located. The term "Real Property Taxes" shall also
include any tax, fee, levy, assessment or charge, or any increase therein: (i)
imposed by reason of events occurring during the term of this Lease, including
but not limited to, a change in the ownership of the Project, (ii) a change in
the improvements thereon, and/or (iii) levied or assessed on machinery or
equipment provided by Lessor to Lessee pursuant to this Lease. In calculating
Real Property Taxes for any calendar year, its Real Properly Taxes for any real
estate tax year shall be included in the calculation of Real Property Taxes for
such calendar year based upon the number of days which such calendar year and
tax year have in common.

      

      
        10.2          Payment
of Taxes. Except as otherwise provided in Paragraph 10.3, Lessor
shall pay the Real Property Taxes applicable to the Project, and said payments
shall be included in the calculation of Common Area Operating Expenses in
accordance with the provisions to Paragraph 4.2.

      

      
        10.3         Additional
Improvements. Common Area Operating Expenses shall not include Real
Properly Taxes specified in the tax assessor's records and work sheets as being
caused by additional improvements placed upon the Project by other Lessees or by
Lessor for the exclusive enjoyment of such other Lessees. Notwithstanding
Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Common
Area Operating Expenses are payable under Paragraph 4.2. The entirety of
any increase in Real Property Taxes if assessed solely by reason to Allegations,
Trade Fixtures or Utility Installations placed upon the Premises by Lessee or at
Lessee's request or by reason of any allegations or improvements to the
Premises made by Lessor subsequent to the execution of this Lease by the
Parties.

      

      
        10.4          Joint
Assessment. If the Building is not separately assessed, Real Property
Taxes allocated to the Building shall be an equitable proportion of the Real
Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be determined by Lessor term the respective
valuations assigned in the assessor's work sheets or such other information as
may be reasonably available. Lessor's reasonable determination thereof, in
good faith, shall be conclusive.

      

      
        
          
             

          

          
            
            

             

            
              	 	 	PAGE 9 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

        

      

      
        
          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

      

      
                 
10.5          Personal
Property
Taxes.   Lessee shall pay prior to delinquency all taxes
assessed against and levied upon Lessee Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all personal property
of Lessee contained in the Premises. When possible, Lessee shall cause its
Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately
from the real property of Lessor. If any of Lessee's said property shall to
assessed with Lessor's real property, Lessee shall pay Lessor the taxes
attributable to Lessee's property within 10 days after receipt of a written
statement setting forth the taxes applicable to Lessee's
property.

      

      
        11.             Utilities
and Services. 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 taxes thereon. Notwithstanding the provisions of
Paragraph 4.2, if at any time in Lessor's sole judgment, Lessor determines that
Lessee is using a disproportionate amount of water, electricity or other
commonly metered utilities, or that Lessee is generating such a large volume of
trash as to require an increase in the size of the trash receptacle and/or an
increase in the number of times per month that it is emptied, then Lessor may
increase Lessee's Base Rent by an amount equal to such increased costs. There
shall be no abatement of Rent and Lessor shall not be liable in any respect
whatsoever for the inadequacy, stoppage, interruption or discontinuance of any
utility or service due to riot, strike, labor dispute, breakdown, accident,
repair or other cause beyond Lessor's reasonable control or in cooperation with
governmental request or directions.

      

      
        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 sublet all or any part of
Lessee's interest in this Lease or in the Premises walkout Lessor's prior
written consent.

      

      
        (b)            Unless
Lessee is a corporation and its stock is publicly traded on a national stock
exchange, a change in the control of Lessee shall constitute an assignment
requiring consent.   The transfer, on a cumulative basis, of 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 a formal 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 25%
of such Net Worth as it was represented at the 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, shall be 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 a Default
curable after notice per Paragraph 13.1(c), or a nondurable Breach without the
necessity of any notice and grace period. If Lessor elects to treat such
unapproved assignment or subletting as a nondurable Breach, Lessor may either
(i) terminate this Lease, or (ii) upon 30 days written notice, increase the
monthly Base Rent to 110% of the Base Rent then in effect. Further, in the
event of such Breach and rental adjustment, (i) the purchase price of any option
to purchase the Premises held by Lessee shall be subject to similar adjustment
to 110% of the price previously in effect, and (ii) all fixed and non-fixed
Rental adjustments scheduled during the remainder of the Lease term shall be
increased to 110% of the scheduled adjusted Rent.

      

      
           
(e)            Lessee's
remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

      

      
           
(f)             Lessor
may reasonably withhold consent to a proposed assignment or subletting if Lessee
is in Default at the time consent is requested.

      

      
           
(g)            Notwithstanding
the foregoing, allowing a de minimus portion of the Premises, i.e. 20 square
feet or less, to be used by a third party vendor in connection with the
installation of a vending machine or payphone shall not constitute a
subletting.

      

      
             12.2       Terms
and Conditions Applicable to Assignment and
Subletting.

      

      
           
(a)            Regardless
of Lessor's consent, no assignment or subletting shall:  (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 of Lessee 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 Lessor pending approval or disapproval of an
assignment.   Neither a delay in the approval or disapproval of
such assignment 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 consent to any
subsequent assignment or subletting.

      

      
           
(d)             In
the evenly 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 under this 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 in writing,
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
required modification of the Premises, if any, together with a fee of $500 as
consideration 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. (See
also Paragraph 36)

      

      
           
(f)             Any
assignee of, or sublessee under, this Lease shall, by reason of accepting such
assignment, entering into such sublease, or entering into possession of the
Premises or any portion thereof, be deemed to have assumed and agreed to conform
and comply with each and every term, covenant, condition and obligation herein
to  observed or performed by Lessee during the term of said assignment
or 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.

      

      
           
(g)            Lessor's
consent to any assignment or subletting shall not transfer to the assignee or
sublessee any Option granted to the original Lessee by this Lease unless such
transfer is specifically consented to by Lessor in writing. (See Paragraph
33.2)

      

      
                          
12.3         Additional
Terms and
Conditions Applicable to Subletting. The following
terms and conditions shall apply to any subletting by Lessee of all or any part
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 may collect such Rent and apply same
lower 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. In the event that the amount collected by Lessor exceeds
Lessee's then outstanding obligations any such excess shall be refunded to
Lessee. Lessor shall not, by reason
of the foregoing 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 hereby irrevocably 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 under the sublease. Sublessee shall rely upon any such
notice from Lesser 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.

      

      
        
          
             

          

          
            
            

             

            
              	 	 	PAGE 10 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                        
 (b)            In
the event of a Breach by Lessee, Lessor may, at its option, require sublessee to
attorn to Lessor, to which event Lessor shall undertake the obligations of the
sublease 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
any prepaid Rents or security deposit paid by such sublessee to such sublease or
for any prior Defaults or Breaches of such sublease.

      
           
(c)            Any
matter requiring the consent of the sublease under a sublease shall also require
the consent of Lessor.

      

      
           
(d)            No
sublessee shall 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 in such 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 and Regulations under this Lease. A "Breach" is
defined as the occurrence 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 the vacating 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 to minimize potential
vandalism.

      

      
           
(b)            The
failure of Lessee to make any 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 which endangers or threatens life or
property, where such failure continues for a period of 3 business days following
written notice to Lessee.

      

      
           
(c)            The
commission of waste, act or acts constituting public or private nuisance, and/or
an illegal actively on the Premises by Lessee, where such actions continue for a
period of 3 business days following written notice to Lessee.

      

      
           
(d)            The
failure by Lessee to provide (i) reasonable written evidence of compliance with
Applicable Requirements, (ii) the service contracts, (iii) the rescission of an
unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a
requested subordination, (vi) evidence concerning any guaranty and for
Guarantor, (vii) any document requested under Paragraph 4.1, (viii) material
data safety sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require of Lessee under the terms of this Lease, where any
such failure continues for a period of 10 days following written notice to
Lessee.

      

      
           
(e)            A
Default by Lessee as to the terms, covenants, conditions or provisions of this
Lease, or of the rules adopted under Paragraph 2.9 hereof, other than these
described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default
continues for a period of 30 days after written notice; provided, however, that
if the nature of Lessee's Default is such that more than 30 days are reasonably
required for its cure, then it shall not be deemed to be a Breach if Lessee
commences such cure within said 30 day period and thereafter diligently
prosecutes such cure to completion.

      

      
           
(f)             The
occurrence of any of the following events: (i) the making of 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 some is dismissed within 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
interests in this Lease, where possession is not restored to Lessee within 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 discharged within 30 days;
provided, however, in the event that any provision of this subparagraph is
contrary to any applicable law, such provision shall be to no force or effect,
and not affect the validity of the remaining provisions.

      

      
           
(g)            The
discovery that any financial statement of Lessee or of any Guarantor given to
Lessor was materially false.

      

      
                            (h)            If
the performance 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) a Guarantor's
becoming insolvent or the subject of 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, within 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 the
Guarantors that existed at the time of execution of this
Lease.

      

      
          
13.2          Remedies. If Lessee fails to
perform any of its affirmative duties or obligations, within 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 the obtaining of reasonably required bonds, insurance policies, or
governmental licenses, permits or approvals. Lessee shall pay to Lessor an
amount equal to 115% of the costs and expenses incurred by Lessor in such
performance upon receipt of an invoice therefore. In the event of a Breach,
Lessor may, with or without further notice or demand, and without limiting
Lessor in the exercise of any right or remedy which Lessor may have by reason of
such Breach:

      

      
           
(a)            Terminates
Lessee's right to possession to 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) the
unpaid 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 loss that 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 proves could 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 would be likely to result there from,
including but not limited to the cost of recovering possession of the
Premises, expenses of reletting, including necessary renovation and allegation
of its Premises, reasonable attorneys' fees, and that portion of any 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
computed by discounting such amount at the discount rate of the Federal Reserve
Bank of the District within which the Premises are located at the time
toward plus one percent. Efforts by Lessor to mitigate damages caused by
Lessee's Breach of this Lease shall not waive Lessor's right to recover damages
under Paragraph 12. If termination of this Lease is obtained through its
provisional remedy of unlawful detainer, Lessor shall have the right to recover
in such proceeding any unpaid 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 or quit, 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 detained statute shall run 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/or by said
statute.

      

      
        
          
             

          

          
            
            

             

            
              	 	 	PAGE 11 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
           
(b)            Continue
the Lease and Lessee'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 the Lessor's interests, shall not
constitute a termination of the Lessee's right to possession.   

      

      
           
(c)             Pursue
any other remedy now or hereafter available under than laws or judicial
decisions of the state wherein the Premises are located.  The
expiration or termination of this Lease and/or the termination to 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 the Premises.

      

      
           13.3          Inducement
Recapture. Any agreement for free or abated rent or other charges, or for
the 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
deleted from 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 end payable
by Lessee to Lessor, 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 this paragraph 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 Lessor to incur
costs not contemplated by this Lease, 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 shall not be received by Lessor
within 5 days after such amount shall be due, then, without any requirement for
notice to Lessee, Lessee shall immediately pay to Lessor a one-time late charge
equal to 10% of each such overdue amount or $100, whichever is greater. The
parties 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's Default 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 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 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 31st day after it was due as to
non-scheduled payments. The interest ("Interest") charged shall be compiled at
the rate of 10% per annum but shall not exceed the 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 this Paragraph, a reasonable time shall in
no event be less than 30 days after receipt by Lessor, and any Lender whose name
and address shall have been furnished by Lessee in writing for such purpose, of
written notice specifying wherein such obligation of Lessor has not been
performed; provided, however, that if the nature of Lessor's obligation is such
that more than 30 days are reasonably required for its performance, then Lessor
shall not be in breach if performance is commenced within such 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 30 days after receipt of said notice, or if
having commenced 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 the actual and reasonable cost to perform such cure, provided however,
that such offset shall not exceed an amount equal to the greater of one
month's Base Rent or the Security Deposit, reserving Lessee's right to
reimbursement from Lessor for any such expense in excess of such offset. 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 the power 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 10% of the floor area of the Unit, or
more than 25% of Lessee's Reserved Parking Spaces, is taken by Condemnation,
Lessee may, at Lessee's option, to be exercised in writing within 10 days after
Lessor shall have given Lessee written notice of such taking (or in the absence
of such notice, within 10 days after the condemning authority shall have taken
possession) 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
the Premises 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 be made 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 paid by the condemner
for Lessee's relocation expenses, loss of business goodwill 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 Condemnation only, shall be
considered the property of the Lessee and Lessee shall be entitled to any and
all compensation which is payable therefore. In the event that this
Lease is not terminated by reason of the Condemnation, Lessor shall repair
any damage to the Premises caused by such Condemnation.

      

      
        15.            
 Brokerage Fees.

      

      
                  
15.1          Additional
Commission. In addition to the payments owed pursuant 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 or anyone
affiliated with Lessee acquires from Lessor any rights to the Premises or other
premises owned by Lessor and located within the Project, (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 or
operation of an escalation clause herein, then, Lessor shall pay Brokers a fee
in accordance with than schedule of the Brokers in effect at the time of
the execution of this Lease.

      

      
          
15.2         Assumption of
Obligations. Any buyer or transferee of Lessor's interest in this Lease
shall be deemed to have assumed Lessor's obligation hereunder. Brokers shall be
third party beneficiaries of the provisions of Paragraphs 1.10, 15, 22, and 31.
If Lessor fails to pay to Brokers any amounts due as and for brokerage fees
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 to Lessor and Lessee of such failure and
if Lessor fails to pay such amounts within 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 to be a third party beneficiary
of any commission agreement entered into by and/or between Lessor and Lessor's
Broker for the limited purpose of collecting any brokerage fee
owed.

      

      
           15.3          Representations
and Indemnities of Broker Relationships. Lessee and Lessor each represent
and warrant to the other that it has had 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 to any 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 any such unnamed broker, finder or other similar
party by reason of any dealings or actions of the indemnifying Party, including
any costs, expenses, attorneys' fees reasonably incurred with respect
thereto.

      

      
        
          
             

          

          
            
            

            
              	 	 	PAGE 12 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM MTN-G-3/0GE 

                    

            

          

        

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            
16.            Estoppel
Certificates.

        

      

      
                       
(a)            Each
Party (as "Responding Party") shall within 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   "Estoppels Certificate" form published by the AIR
Commercial 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 the Estoppel Certificate
within such 10 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) there
are 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 encumbrances may rely upon the Requesting
Party'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 the Premises, or any part thereof,
Lessee and all Guarantors shall deliver to any potential lender or
purchaser designated by Lessor such financial statements as may to reasonably
required by such lender or purchaser, including but not limited to Lessee's
financial statements for the past 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 question of the fee title to the
Premises, or, if 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 or assignee (in cash or by
credit) any unused Security Deposit held by Lessor. Upon such transfer or
assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor
shall be relieved of all liability with 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 the Lessor as hereinabove
defined.

      

      
        18.            Severability.   The
invalidity of any provision of this Lease, as determined by a court of competent
jurisdiction, shall in no way affect the validity of any other provision
hereof.

      

      
        19.            Days.
Unless otherwise specifically indicated to the contrary, the word "days" as used
in this Lease, shall mean and refer to calendar days.

      

      
        20.            Limitation
on Liability. The obligations of Lessor under this Lease shall not
constitute personal obligations of Lessor, or its partners, members, directors,
officers or shareholders, and Lessee shall look to the Premises, and to no
other assets of Lessor, for the satisfaction of any liability of Lessor with
respect to this Lease, and shall not seek recourse against Lessor's partners,
members, directors, officers or shareholders, or any of their personal assets
for such satisfaction.

      

      
        21.            Time
of Essence. Time is of the essence with respect to the performance of all
obligations to be performed or observed by the Parties under this
Lease.

      

      
        22.            No
Prior or Other
Agreements; Broker Disclaimer. This Lease contains all agreements between
the 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 use,
nature, quality and character of the Premises. Brokers have no responsibility
with respect thereto or with respect to any default or breach hereof by either
Party.

      

      
        23.            Notices.

      

      
         23.1  Notice
Requirements. All notices required or permitted by this Lease or
applicable law shall be in writing and may be delivered in person (by hand or by
courier) or may be sell by regular, certified or registered mail or U.S. Postal
Service Express Mail, with postage prepaid, or by facsimile transmission, and
shall be deemed sufficiently given if served in 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 a different 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 or parties at such addresses as Lessor
may from time to time hereafter designate in writing.

      

      
               
 23.2  Date of Notice. 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 mail the notice shall be deemed
given 72 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 deemed given 24 hours after
delivery of the same to the Postal Service or courier. Notices transmitted by
facsimile transmission or similar means shall to deemed delivered upon telephone
confirmation of receipt (confirmation report from fax machine is sufficient),
provided a copy is also delivered 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.

      

      
        (a)            No
waiver by Lessor of the Default or Breach of any
term, covenant recondition hereof Lessee, shall to deemed a waiver 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 , or approval of, any act shall not be deemed  to render
unnecessary 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.

      

      
        (b)            The
acceptance of 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. In
connection therewith, which such statements end/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.

      

      
        (c)            THE
PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL
MATTERS RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE
STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS
LEASE.

      

      
        25.            Disclosures
Regarding the Nature of a Real Estate Agency Relationship.

      

      
        (a)            When
entering into a discussion with a real estate agent regarding a real estate
transaction, a  Lessor/ Lessee should from the outset understand
what type of agency relationship or representation it has with the again or
agents in the transaction. Lessor and Lessee acknowledge being advised by the
Brokers in this transaction, as follows;

      

      
         (i)             Lessor's
Agent.   A Lessor's agent under a listing agreement with
the Lessor acts as the agent for the Lessor only.  A Lessor's
agent or subagent has the following affirmative obligations: To the Lessor: A
fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with
the Lessor.  To the Lessee and the
Lessor:  (a) Diligent exercise of reasonable skills and care in
performance of the agent’s duties, (b) A duty of honest and fair dealing and
good faith. (c) A duty to disclose all facts known to the agent materially
affecting the value or desirability of the property that are not known to, or
within the diligent attention and observation of, the Parties. An agent is not
obligated to reveal to either Party any confidential information obtained from
the other Party which does not involve the affirmative duties set forth
above.

      

      
         

          
             

          

          
            
              	 	 	PAGE 13 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

        

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          
                
(ii)             Lessee's
Agent. An agent can agree to
act as agent for the Lessee only.  In these situations, the agent is
not the Lessor's agent, even if by agreement the agent may receive compensation
for services rendered, either in full or in part from the Lessor. An agent
acting only for a Lessee has the following affirmative obligations. To the Lessee: A
fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with
the Lessee. To the Lessee and the Lessor:
(a) Diligent exercise of reasonable skills and care in performance
of the agent's duties, (b) A duty to honest and fair dealing and good faith. (c)
A duty to disclose all facts known to the agent materially affecting the value
or desirability of the property that are not known to, or within the diligent
attention and observation of, the Parties. An agent is not obligated to reveal
to either Party any confidential information obtained from the other Party which
does not involve the affirmative duties set forth above.

      

      
        (iii)            Agent
Representing Both Lessor and Lessee. A real estate agent, either
acting directly or through one or more associate licenses, can legally be
the agent of both the Lessor and the Lessee  in a transaction, but
only with the knowledge and consent of both the Lessor and the Lessee. In a dual
agency situation, the agent has the following affirmative obligations to both
the Lessor and the Lessee: (a) A fiduciary duty of utmost care, integrity,
honesty and loyalty in the dealings with either Lessor or the Lessee, (b) Other
duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii)
in representing both Lessor and Lessee, the agent may not without the express
permission of the respective Party, disclose to the other Party that the Lessor
will accept rent in an amount less than that indicated in the listing or that
the Lessee is willing to pay a higher rent than that offered. The above duties
of the agent in a real estate transaction do not relieve a Lessor or Lessee from
the responsibility to protect their own interests. Lessor and Lessee should
carefully read all agreements to assure that they adequately express their
understanding of the transaction. A real estate agent is a person qualified to
advise about real estate.  If legal or tax advice is desired, consult
a competent professional.

      

      
         (b)            Brokers
have responsibility with respect to any Default or Breach hereof by either
Party.  The  Parties agree that
no  lawsuit or other legal proceeding involving any breach of
duty, error, or omission relating to this Lease may be brought against Broker
more than one year after the Start Date and that the liability (including court
costs and attorneys' fees), of any Broker with respect to any such lawsuit
and/or legal proceeding shall not exceed 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 gross negligence or willful
misconduct of such Broker.

      

      
         (c)             Buyer
and Seller agree to identify to Brokers as "Confidential” any communication or
information given Brokers that is considered by such Party to be
confidential.

      

      
        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 Lease. In the event
that Lessee holds over, then the Base Rent shall be increased to 150% of the
Base Rent applicable immediately preceding the expiration or termination.
Nothing contained herein shall be construed as consent by Lessor to any holding
over by Lessee.

      

      
        27.            Cumulative
Remedies. No remedy or election hereunder shall be deemed exclusive but
shall, wherever possible, be cumulative with all other remedies at law or in
equity.

      

      
        28.            Covenants
and Conditions; 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 Parties only 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 fair meaning as a whole, as if
both Parties had prepared it.

      

      
        29.            Binding
Effect; Choice of Law. This Lease shall be binding upon the parties,
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
the Premises are located.

      

      
        30.            Subordination;
Attornment; Non-Disturbance.

      

      
          30.1          Subordination.
This Lease and any Option granted hereby shall to subject and subordinate to any
ground 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 all renewals,
modifications, and extensions thereof. Lessee agrees that the holders of any
such Security Devices (in this Lease together referred to as "Lender") shall
have no liability or obligation to perform any of the obligations 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 Options shall be deemed
prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

      

      
           30.2         Attornment. In the event that
Lessor transfers title to the Premises, or the Premises are acquired by another
upon the foreclosure or termination of a Security Devise to
which this Lease is subordinated (i) Lessee shall, subject to the
non-disturbance provisions of Paragraph 30.3, attorney to such new owner, and
upon request, enter into a new lease, containing all of the terms and provisions
to this Lease, with such new owner for the remainder of the term hereof, or, at
the election of the new owner, this Lease will automatically become a new lease
between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved
of any further obligations hereunder and such new owner shall assume all of
Lessor's obligations, except that such new owner shall not: (a) be liable for
any act or omission of any prior Lessor or with respect to events occurring
prior to acquisition of ownership; (b) be subject to any offsets or defenses
which Lessee might have against any prior Lessor, (c) be bound by prepayment of
more than one month's Rent, or (d) be liable for the return of any security
deposit paid to any prior Lessor which was not paid or credited to such new
owner.

      

      
           30.3          Non-Disturbance.
With respect to Security Devices entered into by Lessor after the execution 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 Agreement provides 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, within 60 days
after the execution of this Lease, Lessor shall, if requested by Lessee, use its
commercially reasonable efforts to obtain a Non-Disturbance Agreement from the
holder of any pre-existing Security Device which is secured by the Premises. In
the event that Lessor is unable to provide the Non-Disturbance Agreement within
said 60 days, then Lessee may, at Lessee's option, directly contact Lender and
attempt to negotiate for the execution and delivery of a Non-Disturbance
Agreement.

      

      
           30.4          Self-Executing.
The agreements contained in this Paragraph 30 shall be effective without the
execution of 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 required to separately document any subordination,
attornment and/or Non-Disturbance Agreement provided for
herein.

      

      
        31.           
 Attorneys' Fees. If any Party or Broker brings an action or
proceeding involving the Premises whether founded in tort, contract or equity,
or to declare rights hereunder, the Prevailing Party (as hereafter defined) in
any such proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys' 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, without limitation, 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’
fees award 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 incurred in 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 ($200
is a reasonable minimum per occurrence for such services and
consultation).

      

      
         

          
             

          

          
            
            

            
              	 	 	PAGE 14 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                      INITIALS 

                    

            

            
              	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                         
      FORM
MTN-G-3/0GE 

                    

            

          

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      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, and
otherwise at reasonable times after reasonable prior notice for the purpose of
showing the same to prospective purchasers, lenders, or tenants, and making such
alienations, repairs, improvements or additions to the Premises as Lessor may
deem necessary or desirable and the erecting, using and maintaining of
utilities, services, pipes and conduits through the Premises and/or
other premises as long as there is no material adverse effect on Lessee's use of
the Premises. All such activities shall be without abatement of rent or
liability to Lessee.

      
        33.            Auctions.
Lessee shall neither 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 an
auction.

      

      
        34.            Signs.
Lessor may place on the Premises ordinary "For Sale" signs at any time and
ordinary "For Lease" signs during the last 6 months of the term hereof. Except
for ordinary "For Sublease" signs which may be placed only on the Premises,
Lessee shall not place any sign upon the Project without Lessor's prior written
consent. All signs must comply with all Applicable
Requirements.

      

      
        35.            Termination;
Merger. Unless specifically stated otherwise in writing by Lessor, the
voluntary 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 Promises;
provided, however, that Lessor may elect to continue any one or all existing
subtenancies. Lessor's failure within 10 days following any such event to elect
to the contrary by written notice to the holder of any such lesser interest,
shall constitute Lessor's election to have such event constitute the termination
of such interest.

      

      
        36.            Consents.
Except as otherwise provided herein, wherever in this Lease the consent of a
Party is required to an act by or for the other Party, such consent shall not be
unreasonably withhold or delayed. Lessor's actual reasonable costs and expenses
(including but not limited to architects', attorneys’, engineers' and other
consultants' fees) included 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 presence or use of a Hazardous Substance, shall
be paid by Lessee upon receipt of an invoice and supporting documentation
therefore. Lessor's consent to any act, assignment or subletting shall not
constitute an acknowledgment that no Default or Breach by Lessee of this Lease
exists, nor shall such consent be deemed a waiver to any then existing Default
or Breach, except as may be otherwise specifically slated in writing by Lessor
at the time of such consent. The failure to specify herein any particular
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. In the
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 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 AIR Commercial Real Estate Association.

      

      
          37.2          Default.
It shall constitute a Default of the Lessee if any Guarantor fails 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) an Estoppel Certificate, or (d) written
confirmation that the guaranty is still in effect.

      

      
        38.            Quiet
Possession. Subject to payment by Lessee of the Rent and performance of
all of the covenants, conditions and provisions on Lessee'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.
If Lessee is granted an option, as defined below, then the following provisions
shall apply.

      

      
          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 or other 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. Any Option
granted to Lessee in this Lease is personal to the original Lessee, and cannot
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
thereafter assigning or subletting.

      

      
          39.3          Multiple
Options. In the event that Lessee has any multiple Options to extend 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) during the
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 is in
Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more
notices of separate Default, whether or not the Defaults are cured, during the
12 month period immediately preceding the exercise of the
Option.

      

      
                           
(b)            The
period of time within which 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 or effect, notwithstanding
Lessee's
due and timely exercise of the Option, if, after such exercise and prior to the
commencement of the extended term or completion of the purchase, (i) Lessee
fails to pay Rent for a period of 30 days after such Rent becomes due (without
any necessity of Lessor to give notice thereof, or (ii) if Lessee commits a
Breach of this Lease.

      

      
        40.            Security
Measures. Lessee
hereby acknowledges that the Rent payable to Lessor hereunder 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 and invitees and their
property from the acts of third parties.

      

      
        41.            Reservations.
Lessor reserves the right: (i) to grant, without the consent or jointer
of Lessee, such easements, rights and dedications that Lessor deems necessary,
(ii) to cause the recordation of parcel maps and restrictions, and (iii) to
create and/or install new utility raceways, so long as such easements, rights,
dedications, maps, restrictions, and utility raceways do not unreasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate such
rights.

      

      
        42.             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 Party against 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 to institute 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 not legally required to pay. A
Party who does not initiate suit for the recovery of sums paid "under protest"
within 6 months shall be deemed to have waived its right to protest such
payment.

      

      
         

      

      
        	 	 	PAGE 15 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                INITIALS 

              

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GE 

                

        

         

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      43.            Authority;
Multiple Parties; Execution.

      
        (a)          If
either Party hereto is a corporation, trust, limited liability company,
partnership, or similar entity, each individual 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 30 days
after request, deliver to the other Party satisfactory evidence to such
authority.

      

      
        (b)          If
this Lease is executed by more than one person or entity as "Lessee", each such
person or entity shall be jointly and severally liable hereunder.  It
is agreed that any one of the named Lessees shall be empowered to execute any
amendment to this Lease, or other documents ancillary thereto and bind all to
the named Lessees, and Lesser may rely on the same as if all to the named
Lessees had executed such document.

      

      
                       
(c)          This Lease may be
executed by the Parties in counterparts, each of which shall be deemed an
original and all to which together shall constitute one and the same
instrument.

      

      
        44.            Conflict.
 Any
conflict between the printed provisions of this Lease and the typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten
provisions.

      

      
        45.           
Offer.   Preparation
of this Lease by either party or their agent and submission of same to the 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.

      

      
        46.          
 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.

      

      
        47.            Waiver
of Jury Trial. THE PARTIES HEREBY Waive THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY
IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS
AGREEMENT.

      

      
        48.            Mediation and
Arbitration of Disputes. An Addendum requiring the Mediation and/or the
Arbitration of all disputes between the Parties and/or Brokers arising out
to the Lease [ ]  is [x] is not attached to this
Lease.

      

      
        49.            Americans
with Disabilities Act. Since
compliance with the Americans with Disabilities Act (ADA) is dependent upon
Lessee's specific use to the Premises, Lessor makes no warranty or
representation as to whether or not the Premises comply with ADA or any similar
legislation. In the event that Lessee's use of the Premises requires
modifications or additions to the Premises in order to  be in ADA
compliance, Lessee agrees to make any such necessary modifications and/or
additions at Lessee's expense.

      

      
        LESSOR
AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW 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 THE
PREMISES.

      

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

      

      
        1.              SEEK
ADVICE OF COUNSELS 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, THE STRUCTURAL INTEGRITY, THE
CONDITION OF THE ROOF AND OPERATING SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH
DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES FOR LESSEE'S INTENDED
USE-WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA,
CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS
OF THE STATE IN WHICH THE PREMISES ARE LOCATED.

      

      
        

      

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

      

      
        

      

      
        Executed
at: _____________________________           Executed
at:_________________________________

      

      
        

      

      
        On:
___________________________________               
On:________________________________________

      

      
        

      

      
        By
LESSOR;                                                                                      By
LESSEE:

      

      
        Land
Associates
Trust                                                                         
T3  Motion,   Inc.,   a  Delaware  Corporation

      

      
        E.C. Alsenz.,
Trustee                                                                             
_________________________________

      

      
        

      

      
        By:
______________________________                                    
By: _____________________________

      

      
        Name
Printed:
______________________                                    
Name Printed: _____________________

      

      
        Title:
_____________________________                                   
Title: ____________________________

      

      
        

      

      
        By:
______________________________                                    
By: _____________________________

      

      
        Name
Printed:
______________________                                    
Name Printed: _____________________

      

      
        Title:
_____________________________                                    Title:
____________________________

      

      
        

      

      
        

      

      
        Telephone:
(949)
859-7956                                                                   
Telephone: (______)________________

      

      
        Facsimile:
(949)
472-8281                                                                      
Facsimile: (______)_________________

      

      
        Federal
ID
No.______________________                             Federal
ID No._____________________

      

      
        

      

      
        Broker:                                                                                            
               
Broker:

      

      
        CB Richard Ellis_____________________                           
Lee &
Associaties__________________

      

      
        

      

      
        

      

      
        Attn: Dave
Desper   Nice
Spatafore                                                         
Attn: Jeff Hirsch Peter
Schafer

      

      
        Title: Senior Vice Predident
Senior
Associate                                
Title: ____________________________

      

      
        Address:
3501 Jamboree Road,
Suite
100                                        
Address: 3991
MacArthur Blvd,., Suite
100

      

      
        Newport Beach, CA 92660                                                                  Newport Beach, CA 92660

      

      
        Telephone:(949)
725-8500                                                                  
Telephone:(949)
724-1000

      

      
        Facsimile:
(949)
725-8545                                                                    
Facsimile: (949) 833-0608

      

      
        Email:
dave.desper@cbre.com                                                          
Email: ___________________________

      

      
        Federal
ID No. 95-2743174                                                                 
Federal ID No. _____________________

      

      
        
 

      

      

      
        

      

      
        	 	 	PAGE 16 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                INITIALS 

              

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GE 

                

        

         

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        NOTICE:
These forms are often modified to meet changing requirements of law and
industry needs. Always write or call to make sure you are
utilizing the most current form: AIR Commercial Real Estate Association,
800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213)
607-8777. Fax No.: (213) 687-8616.

      

      
        

      

      
        ©Copyright 1999 by AIR Commercial Real
Estate Association.

      

      
        All
rights reserved. No part of these works may be reproduced in any form without
permission in writing.

      

      
         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

         

        
 

      

      
        

      

      
        

      

      
         

      

      
        
        

         

        
          	 	 	PAGE 17 OF
      17	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                  INITIALS 

                

        

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GEex10_3.htm

    
      

    

    
      

    

    RENT
ADJUSTMENT(S)

    STANDARD
LEASE ADDENDUM

    

    
      

                                                  Dated  February 14,
2007____________________________________________________

      

                                                  By and between
(Lessor)  Land Associates Trust, E.C.
Alsenz, Trustee_________________

                                                                            ___________________________________________________

                      

                                                  
   (Lessee)  T3 Motion, Inc., a Delaware
Corporation_____________________

                                                                                ___________________________________________________

      

      

                                                  Address of
Premises:   2990 Airway
Avenue_____________________________________

                                                                                          
Costa Mesa,
CA_________________________________________

    Paragraph
50_

    

    A.     RENT
ADJUSTMENTS:

             The
monthly rent for each month of the adjustment period(s) specified below shall be
increased using the method(s) indicated below. (Check Method(s) to be Used and
Fill in Appropriately)

    

    [
 ]  1.  
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 Base Month specified
below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S.
Department of Labor for (select one):

    [ 
]  CPI   W (Urban Wage Earners and Clerical Workers) or [
]CPI U (All Urban Consumers). For (Fill in Urban Area):

    ___________________________________________________________________________________________________________________________________________________________,
All Items (1982-1984 = 100), herein referred to as “CPI”.

    
      

    

    
      b.      The
monthly rent payable in accordance with paragraph A.1. 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 2 months prior to the month(s) specified in
paragraph A 1.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): the [  ] first month of the term of this Lease as
set forth in paragraph 1.3 ("Base Month") or [  ]

      (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
month immediately preceding the rent adjustment.

    

    
      

    

    
      c.      In the
event the compilation  and/or publication of the  CPI
shall  be transferred 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 alternative index, 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 Arbitration shall be paid
equally by the Parties.

       

    

    
      [ 
]  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 the property as
follows:

    

    
      

    

    
               1)
Four months prior to each Market Rental Value Adjustment Date described above,
the Parties shall attempt to agree upon what the now MRV will be on the
adjustment date. If agreement cannot be reached within thirty days,
then:

    

    
             (a)   Lessor
and Lessee shall immediately appoint a mutually 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 immediately make a reasonable determination of the
MRV and submit such determination, in writing, to arbitration in accordance with
the following provisions:

    

    
       (i) Within 15 days thereafter,
Lessor and Lessee shall each select an [ ] appraiser or [ ] broker ("Consultant"
-check one) 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 the appointment 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 on the Parties. The submitted MRV which is
determined to be the closest to the actual MRV shall thereafter be used by the
Parties.

    

    
      

    

    
      
        	 	 	PAGE 1 OF
      2	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                INITIALS 

              

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GE 

                

        

         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    
      (iii) If either of the Parties fails
to appoint an arbitrator within 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 by the 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 MRV shall 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  become the  new Base  Month for the
purpose  of calculating  any further
Adjustments.

    

    
      

    

    
      [ x
]   III.      Fixed Rental Adjustment(s)
(FRA)

    

    
      

    

    
      The Base
Rent shall be increased to the following amounts on the dates set forth
below:

      
      

      
      

       

      
        	 	
                On (Fill in FRA
      Adjustment Date(s): 

              	 	
                The New Base Rent
      shall be: 

              	 
	 	June 1,
      2008 	 	$ 23,244.44	 
	 	June 1,
      2009 	 	$ 24,058.00	 
	 	June 1,
      2010 	 	$ 24,900.03	 
	 	June 1,
      2011 	 	$ 25,771.53	 
	 	June 1,
      2012 	 	$ 25,673.53	 
	 	 	 	 	 
	 	 	 	 	 

      

       

       

       

       

    

    
       

    

    
      B.              NOTICE:

    

    
        Unless
specified otherwise herein, notice of any such 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 the Lease.

    

    
      

    

    
      NOTICE:
These forms are often modified to meet changing requirements of law and industry
needs. Always write or call to make sure you are utilizing the most current
form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los
Angeles, CA 90017. Telephone No. (213) 687-8777. Fax No.: (213)
607-6616.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

    

    
      
        	 	 	PAGE 2 OF
      2	 	 
	 	 	 	 	 
	INITIALS 	 	 	 	
                INITIALS 

              

        
          	©1999 - AIR COMMERCIAL REAL
      ESTATE ASSOCIATION 	 	
                     
      FORM MTN-G-3/0GE

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]