Document:

Exhibit 10.37

EXHIBIT 10.37

 

ASSIGNMENT OF LEASE AGREEMENTS

THIS ASSIGNMENT OF LEASE AGREEMENT ("Lease Assignment")
is
made and entered into this 4th day of February, 2020, by and between, on the
one hand, David M. Carlson, Dorrinda M. Carlson, Enterprise Focus, Inc., a
Washington corporation, and Clever Capital, LLC, a Washington limited liability
company (collectively, "Carlson" or "Assignor")
and,
on the other hand, Mark D. Waldron, in his capacity as the Chapter 11 Trustee
(the "Trustee" or "Assignee") acting on
behalf of and representing the estate (the "Estate") in the
bankruptcy case (the "Bankruptcy Case") of Giga Watt, Inc., ("Giga
Watt" or the "Debtor") which is pending in the U.S.
Bankruptcy Court for the Eastern District of Washington (the "Bankruptcy
Court") and assigned Case No. 18-03197.

RECITALS

WHEREAS, in January 2020, Carlson and the Trustee (also referred to
herein collectively as the "Parties" and each individually as
a "Party") entered into that certain Settlement Agreement and
General Release of Claims (the  "Settlement Agreement").

WHEREAS,
pursuant to the Settlement Agreement, and subject to Bankruptcy Court approval
of the Settlement Agreement and of this Lease Assignment, Carlson has agreed to
assign to the Trustee any right, title or interest that Carlson has, claims to
have, or may have with respect to any leasehold interest in the premises
commonly known as 474 Highline Drive, East Wenatchee, Washington (the "TNT
Facility"), including, but not limited to:

Building
A Lease. That certain agreement entitled, Commercial Lease Agreement, dated
June 24, 2015 and Addendum to Commercial Lease Agreement, dated July 1,
2015, by and between TNT Business Complexes, LLC, on the one hand, and David M.
Carlson and Enterprise Focus, Inc., on the other hand, pursuant to which TNT
Business Complexes LLC ("TNT") leased Building A of the TNT Facility
to David M. Carlson and Enterprise Focus, Inc. or one or more of their
affiliates (the "Building A Lease").

Building
C Lease. That certain agreement entitled, Commercial Lease Agreement, dated
November 14, 2014 and the Addendum, dated November 18, 2014, by and
between TNT, on the one hand, and David M. Carlson and Enterprise Focus, Inc.,
on the other hand, pursuant to which TNT leased Building C of the TNT Facility
to David M. Carlson and Enterprise Focus, Inc., or one or more of their
affiliates (the "Building C Lease").

Buildings B & H
Lease. That certain
agreement entitled, Commercial Lease Agreement, dated June 21, 2013, by
and between Darel E. Thompson and Patricia C. Thompson d/b/a TNT Business and
Warehouse Complex, on the one hand, and David M. Carlson and Enterprise Focus,
Inc., on the other hand; that certain Lease Addendum, dated June 21,
2013, by and between Darel E. and Patricia C. Thompson d/b/a TNT Business
Warehouse Complex, on the one hand, and David M. Carlson, on the other; that
certain Leases Addendum to Building H, dated September 1, 2013, by and
between Darel E. Thompson and Patricia C. Thompson d/b/a TNT Business Warehouse
Complex, on the

4839-3432-1838, v. 3

 

one hand, and David M. Carlson, on the other; that certain
agreement entitled, Commercial Lease Agreement, dated February 7, 2014,
by and between TNT Business Complexes LLC, on the one hand, and David M. Carlson and Enterprise Focus,
Inc., on the other; that certain Addendum to Commercial Lease Agreement, dated
February 8, 2014, by and between TNT Business Complexes LLC and David M.
Carlson; and that certain agreement entitled, Commercial Lease, dated
August 1, 2018, by and between TNT, on the one hand, and David M. Carlson and
Enterprise Focus, Inc., on the other hand (collectively, the "Buildings
B and H Lease").

WHEREAS, pursuant to that
certain agreement, entitled Commercial Lease, dated November 16, 2018,
by and between Clever Capital, LLC, on the one hand, and Giga Watt, on the
other, Clever Capital, LLC purported, inter alia, to lease to Giga Watt
Buildings A, B and H of the TNT Facility (the  "November 16
Agreement").

WHEREAS,
pursuant to the Settlement Agreement, the Parties wish to resolve the disputes
between them including, but not limited to, disputes relative to the TNT
Facility.

AGREEMENT

NOW, THEREFORE, in
consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and legal sufficiency of which is hereby
acknowledged, the parties hereto agree as follows.

1.          Assignment. Subject to
entry of an Order of the Bankruptcy Court approving the Settlement
Agreement, Carlson hereby assigns to the Trustee any and all of Carlson's
right, title and interest in and to any leasehold interest in the TNT Facility,
of any kind, including, but not limited to (i) any leasehold interest in the
TNT Leases, including any and all prepaids, deposits and other rights or
entitlements of Assignor under the TNT Leases and (ii) any leasehold interest
that the November 16 Agreement purported to grant to Carlson, including any and
all prepaids, deposits and other rights or entitlements of Assignor under the
November 16 Agreement.

[Signatures
follow on the next page.]

 

4839-3432-1838, v. 3

 

 IN WITNESS WHEREOF, the Parties have
executed this Settlement Agreement as of the date and year indicated below.

 

4839-3432-1838, v. 3Exhibit 10.38

EXHIBIT 10.38

 

COMMERCIAL LEASE

	
		DATE:
	
		August 1, 2018

		 

	
		LANDLORD:
	
		TNT BUSINESS COMPLEXES, LLC

		380 Leslie Way

		East Wenatchee, WA 98802

		 

	
		
		TENANT:
	
		ENTERPRISE FOCUS, INC. and DAVE CARLSON

		2504 Columbia NW

		East Wenatchee, WA 98802

 

RECITALS:

WHEREAS, in 2013 and 2014, Dave Carlson/Enterprise Focus
entered into a lease with Landlord leasing the Leased Premises ("Carlson
Lease"). The Leased Premises means buildings B and H located on the Real
Property, together with related improvements, landscaped areas, and parking
facilities

WHEREAS, in 2013 and 2014, Dave Carlson/Enterprise Focus
submitted $75,000 as alteration deposits ("Deposits") for the Leased
Premises as a condition of the Carlson Lease.

•   
Building H:
$65,000.00

•   
Building B:
$10,000.00

WHEREAS, Due to the nature of
Tenant's business, significant alterations are necessary to meet Tenant's
objectives. More specifically, the Deposits are held for rebuilding the front
and rear walls of each building (where ventilation holes have been placed), to
remove the electrical grids and wiring back to the main sub panels, and
removing the HVAC system installed in building B.

WHEREAS, labor and material costs have increased in the
past several years. The Deposits have become insufficient to cover the costs of
restoration of the Leased Premises and portions of the Real Property affected
by Tenant's alterations.

WHEREAS, as a condition of Landlord leasing the Leased
Premises to Tenant, Landlord requires an increase in the original alteration
deposits of $32,000. The increase of funds is described as follows:

•  Rock Steel Structures Inc. bid to
make restorations increase: $25,875.00

•  Estimated increase of electrical and
HVAC removal: $6,125.00

COMMERCIAL LEASE - 1
 
 

WHEREAS, the following alteration projects were done to
the Leased Premises that were never approved nor were alteration deposits
submitted:

•  A bathroom removed in building H;

•  Security systems upgraded in
buildings B and H; and

•  Electrical system components
installed after original 2014 alteration deposits.

Landlord and Tenant hereby agree to
the estimated alteration cost of $15,000 to cover these alterations.

WHEREAS, Landlord requires an amount equal to four (4)
months lease payments in reserve to repair the Leased Premises if Tenant is
unable to continue business through the full 5 years of the Lease. This portion
of the alteration deposits is calculated as follows:

•  4 months x $7,350.00 = $29,400.00

WHEREAS, Landlord and Tenant hereby
agree to an alteration deposit that has been delivered to Landlord on July 31,
2018 to cover the additional alteration deposits set forth above of $76,400.00,
which shall be applied to all alterations made to the Leased Premises on or
before July 31, 2018. The alteration deposit is calculated as follows:

•  $32,000.00 + $15,000.00 + $29,400.00
= $76,400.00

Landlord
hereby acknowledges receipt of the additional alteration deposit. Landlord
hereby also acknowledges that Tenant has paid, in total, $151,400.00
($75,000.00 + $76,400.00) for alteration deposits
for the Leased Premises.

LOCATION OF LEASED PREMISES. The Leased Premises is located at
474 Highline Dr., East Wenatchee, Washington, on the Real Property legally
described on Exhibit A attached hereto, and incorporated as if fully set forth
herein. The Lease is subject to all easements, restrictions, agreements of
record, mortgages and deeds of trust, and zoning and building laws.

DESCRIPTION OF LEASED PREMISES. The Leased Premises shall consist only of buildings B
and H located on the Real Property, together with related improvements,
landscaped areas, and parking facilities. The locations of said buildings are
diagramed on the map attached as Exhibit B, which is incorporated as if fully
set forth herein.

LANDLORD AND TENANT IMPROVEMENTS. Landlord has delivered the Leased
Premises and every part or portion thereof with all systems included in Leased
Premises cleaned, serviced, working, and free from leaks and/or defects and
infestations as of the commencement of the Carlson Lease. These systems include
and are not limited to the roof, rain gutters, plumbing, electrical wiring,
conduits, plumbing, and heating/furnaces and the parking area. Landlord is
required to keep the structure and the structural systems including the roof
and rain gutters of the Leased Premises in good repair and free of leaks or
infestations (cockroaches, rodents, termites, etc.). All repairs made by
Landlord due to damage caused by Tenant shall be reimbursed by Tenant within
Thirty (30) days of Landlord completing the repairs. Tenant shall be
responsible to keep all
 

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LEASE - 2

 
 

other aspects of the Leased Premises in
good repair at its sole cost. Upon occupancy of the Leased Premises, Tenant
shall be responsible, at its sole cost and expense, for any and all alterations
or improvements to the Leased Premises necessary to accommodate Tenant's
business authorized in this Lease. Any and all alterations to the Leased
Premises made by Tenant shall be in strict accordance with the provisions of
Paragraph 6.4 herein, whether made before or after the Lease Commencement Date.
Tenant, by taking occupancy of the Leased Premises, acknowledges that all
improvements (if any) promised by Landlord have been completed to Tenant's
satisfaction and Tenant accepts the Leased Premises in its then present
condition "AS IS."

AGREEMENT. LANDLORD HEREBY LEASES TO TENANT AND
TENANT DOES HEREBY AGREE TO LEASE FROM LANDLORD THE ABOVE-DESCRIBED LEASED
PREMISES UPON THE FOLLOWING TERMS AND CONDITIONS:

1.             TERM.

1.1      
Original
Term. The Original Lease Term shall be for a period of Five (5) years, commencing on August 1, 2018 (the
"Date of Commencement") and shall terminate on July 31, 2023 at 5:00
p.m. (PDT). If Tenant occupies the Leased Premises prior to the Commencement
Date, Tenant's occupancy of the Leased Premises shall be subject to all
provisions of this Lease. Early occupancy of the Leased Premises shall not
advance the expiration date of this Lease.

1.2      
Renewal
of Initial Lease Term. Provided the Tenant shall be in compliance with the terms of this Lease at the time of exercising same, and
subject to the terms set forth in Paragraph 2.2 herein, the Tenant shall have a
single five (5) year renewal option to be exercised, if at all, by the Tenant
giving notice in writing to Landlord of Tenant's intent to exercise such option
not less than 90 calendar days prior to the Expiration of the Original Lease
Term set forth in Section 1.1 above. In the event Tenant opts to renew this
Lease, Rent shall be increased for such renewal per Section 2.2 below. Tenant
and Landlord agree that prior to the renewal of the Lease, the parties shall
agree to new initial base Rent and any adjustments to Rent for the renewal term
in writing.

2.             RENT

2.1.     Rent. Beginning August 1, 2018, Tenant shall pay Landlord Rent in the amount
of Seven Thousand Seven Hundred Fifty and 00/100 Dollars ($7,750.00) per month
("Rent"), payable in advance in equal monthly installments on or
before the first day of each calendar month during the Term of this Lease and
any extensions thereof.

2.2      Adjustment to Rent.
For the first two years of the Lease, the rent shall remain fixed as set forth
in Section 2.1. At the commencement of the third year of the Lease, the
payments shall be increased by two and one half percent (2.5%).

In year four and each subsequent year,
including any renewal term under Section 1.2, the payments shall be increased
by an amount tied to the Consumer Price Index (CPI), based on the then-current
un-adjusted, 12-months, all items indicator. By way of example, in year three,
if no other increases are made to the rent payments per Sections 2.3 or 4.3.1,
the rent would be increased from $7,750.00 to $7,943.75; in year four, assuming
a CPI of 2.5%,the rent would be increased from $7,943.75 to
 

COMMERCIAL
LEASE - 3

 
 

$8,142.34; and in year five, assuming a
2.5% CPI, the rent would be increased from $8,142.34 to $8,345.90The CPI
examples are for illustration only and are not indicative of the actual CPI
amounts in future years.

2.3          
Late Charges and
Interest.

2.3.1. Tenant acknowledges that late
payment of any rent required by this Lease, or renewal thereof, from Tenant to
Landlord will result in collection costs to Landlord, the extent of which
additional cost is extremely difficult and, economically impractical to
ascertain. Tenant therefore agrees that if Tenant fails to make any rent
payment required by this Lease to Landlord within ten (10) calendar days of the
date when it is due, Landlord shall impose a late charge of twelve percent
(12%) of the Rent due to be added to the delinquent payment. If Tenant is
delinquent in paying Rent two (2) times in any given six (6) month period, a
service charge of ten percent (10%) per month thereafter shall be paid to
Landlord in addition to Rent. Delinquent Rent is defined as payment not made
within thirty (30) days of its due date. Tenant agrees that the late charge is
a reasonable estimate of the costs to Landlord of collecting the overdue
payment. Landlord may levy and collect the late charge in addition to all other
remedies available for Tenant's default, and collection of a late charge shall
not waive the breach caused by the late payment.

2.3.2 All payments required under this
Lease, including any late charge imposed under Paragraph 2.3.1 herein, not paid
when due shall bear interest at a rate of eighteen percent (18.0 %) per annum.
Landlord may levy and collect this interest charge in addition to all other
remedies available for Tenant's default, and collection of a late charge shall
not waive the breach caused by the late payment.

2.4        
Document
Preparation Fee.  N/A

2.5         Alteration
Deposit. Landlord acknowledges receipt of an additional Seventy Six Thousand Four Hundred and
00/100 Dollars ($76,400.00), as set forth in the recitals above, to hold the
Leased Premises and agrees that this shall be applied to the original
alteration deposit of $75,000.00 thereby making the alteration deposit of
$151,400.00 paid in full. This deposit is for work done as of July 31, 2018.
Any projects after July 31, 2018, shall require a written estimate for removal,
permission and alteration deposits as set forth below.

This alteration deposit is not intended
to cover any lease payments. All lease payments will continue while regular
business operations are maintained or while repairs of the buildings are
ongoing. If Tenant violates any alteration provision of this Lease, Landlord
may, but shall not be obligated to, apply all or any part of the alteration
deposit to remedy such violation. If any portion of the deposit is so applied,
Tenant shall immediately deposit with Landlord cash in an amount sufficient to
restore the alteration deposit to its original amount.

If Tenant fully
and faithfully performs each and every provision of this Lease regarding the
alteration and restoration of the Leased Premises and any portions of the Real
Property affected by the Tenant's alterations , and the Real Property and the
Leased Premises is returned to Landlord in the same condition it was in prior
to the Carlson Lease in 2013, any excess deposit monies shall be refunded back
to Tenant without accrued interest. If Tenant for any reason terminates this
 

COMMERCIAL
LEASE - 4

 
 

Lease early without an agreement with
Landlord, Tenant shall remain responsible for the renovation of Leased Premises
and any portions of the Real Property affected by the Tenant's alterations
substantially the same condition it was in prior to the Carlson Lease in 2013
and will have these deposits refunded in increments to pay for repairs. If the
deposits fall short of completing all repairs, Tenant shall be responsible for
the reasonable difference to satisfy the renovation of the Leased Premises and
any portions of the Real Property affected by the Tenant's alterations.

If Tenant vacates the Leased Premises
for any reason, except as provided below in Section 7.2, without first
completing all restoration of the Leased Premises to the reasonable satisfaction
of the Landlord, Tenant shall not be entitled to a refund of any unused
alteration deposit, and Tenant shall be responsible for the reasonable
difference to satisfy the renovation of the Leased Premises should the
alteration deposits not be sufficient to restore the Leased Premises and any
portions of the Real Property affected by the Tenant's alterations to the same
condition it was in prior to the Carlson Lease.

3.        
BUSINESS
PURPOSE AND USE

3.1          
Permitted Use. Tenant shall use the Leased Premises
only for the purpose of operating a cryptocurrency server farm business in
compliance with applicable law, and activities reasonably related thereto, and
for no other purpose without the written consent of Landlord, which consent may
be withheld or conditioned in Landlord's sole, unfettered discretion.

3.2       Compliance
with Laws. In connection with its use, Tenant shall comply, at its
expense, with all applicable laws, regulations and requirements of any public
authority, including those regarding maintenance, operation and use of the
Leased Premises and any appliances on the Leased Premises (including signs).
Without limiting the generality of the foregoing, after the Commencement Date
of this Lease, should the government require alterations to the interior,
exterior or structure of the building necessitated by changes in applicable
building codes, handicapped access laws or similar regulations, these changes
will be the sole responsibility of Tenant. If the expenses are unreasonably
high, then Tenant and Landlord may negotiate in an attempt to resolve the issue
in a matter that is financially acceptable to both parties. In the event any
such negotiations do not result in resolution by agreement between the parties
within thirty (30) calendar days, either party may terminate the Lease upon
notice to the other party.

3.3       Supervision.
Tenant shall keep the Leased Premises clean and orderly and will cause its
employees, agents, and invitees to conduct themselves in a professional manner.
Tenant will supervise its employees and cause Tenant's agents, independent
contractors, employees, customers, suppliers, and invitees to conduct their
activities in such a manner as to comply with the requirements of this Lease
and the rules and regulations described herein.

3.4       Storage, Trash.
Tenant shall not store anything outside the building except in strict
compliance with requirements of applicable governmental authority, and all such
materials (if allowed) shall be reasonably site-screened from public roads.
Tenant shall dispose of trash and other matter in a manner acceptable to
Landlord.

COMMERCIAL
LEASE - 5
 
 

4.               
UTILITIES AND TAXES

   4.1    Payment. Tenant shall pay directly to the
appropriate supplier all charges for electricity, garbage collection,
gas, internet and telephone supplied to the Leased Premises. Payment for water
and sewer shall be paid by Landlord in the amount of $76.00 per month for sewer
and $138.00 every two months for water ("Estimated Utilities"). In
the event Tenant's water and/or sewer is above the Estimated Utilities,
Landlord shall provide an invoice of the overage to Tenant via email at the
address listed below in Section 15.4, and Tenant shall have ten (10) days to
reimburse Landlord ("Overage"). Failure to timely pay all utilities
within (30) days of its due date constitutes an event of default. Failure to
timely pay an Overage by its due date constitutes an event of default.

  4.2     
Interruption
of Service. Landlord shall not be liable for any failure or interruption of utilities or services to the Leased Premises,
unless caused by the sole negligence of Landlord or its agents.

  4.3    
Taxes
and Assessments

4.3.1   Taxes and Other Payments.
Landlord shall timely pay all real property taxes, other charges, and
assessments properly levied against the Leased Premises. Should Tenant's use or
any subtenant's use of the Leased Premises cause increases in property taxes,
Landlord may adjust the Rent by the increase in the property taxes due. By way
of example, rent is initially set at $7,750.00 per month and the real estate
tax increases from $1,200.00 to $2,400.00 per year, or a $1,200.00 increase.
Landlord may adjust the rent to $7,850.00 per month to reflect the increase of
the real estate taxes.

4.3.2   Personal Property Taxes.
Tenant shall pay, before delinquency, any and all taxes levied or assessed on,
or as a result of, Tenant's leasehold improvements, equipment, furniture,
fixtures and any other personal property located on the Leased Premises. In the
event any or all of Tenant's leasehold improvements, equipment, furniture,
fixtures, and other personal property shall be assessed and taxed with the Real
Property, Tenant shall pay to Landlord its share of such taxes within ten (10)
days after delivery to Tenant from Landlord of a statement in writing setting
forth the amount of such taxes applicable to Tenant's property.

5.               
INSURANCE AND INDEMNITY PROVISIONS

   5.1    Property Insurance. Landlord shall procure and maintain a
Property insurance policy covering loss or damage to the building in
which the Leased Premises is located, including all existing improvements, in
an amount that will adequately cover repairing and/or rebuilding the structure
as a result of damage from fire, casualty, peril, storm or otherwise. The
Property Insurance required by this paragraph shall be for the benefit of
Landlord and shall have Landlord as the sole named insured. Tenant shall be
responsible for insuring all of its equipment, inventory, trade fixtures and
contents located on or within the Leased Premises.

  5.2    
Liability
Insurance. Tenant or any and all subtenants, at its expense, shall obtain and keep in
force during the entire term of this Lease a policy of Commercial General

COMMERCIAL
LEASE - 6
 
 

Liability insurance insuring Landlord
and Tenant against all liability arising out of the ownership, use, occupancy,
or maintenance of the Leased Premises and all areas appurtenant thereto. Such
policy or policies shall provide for liability coverage with minimum combined
single limits for bodily injury and property damage per occurrence in amounts
not less than one million dollars ($1,000,000). The limits of liability
insurance required by this paragraph shall not, however, limit the liability of
Tenant hereunder. To the extent any deductible is permitted or allowed as part
of any insurance policy carried by Tenant in compliance with this Section 5,
Tenant shall be deemed to be covering the amount of such deductible under an
informal plan of self-insurance; provided, however, that in no event shall any
deductible exceed One Thousand Dollars ($1,000.00). All such insurance policies
shall name Landlord as an additional insured and shall be with companies and
with loss-payee clauses reasonably satisfactory to Landlord. Copies of all
policies or certificates evidencing such insurance shall be delivered to
Landlord by Tenant within ten (10) calendar days after this Lease is executed.
All policies shall bear endorsements requiring thirty (30) days written notice
to Landlord prior to any change or cancellation.

5.3        Waiver of
Subrogation. Tenant and Landlord each waive any and all rights of
recovery against the other, or against the employees, agents and
representatives of the other, for loss of or damage to such waiving party,
property, or property of others under its control, where such loss or damage is
insured against under any insurance policy in force at the time of such loss or
damage. Landlord and Tenant shall, upon obtaining the policies of insurance
required hereunder, give notice to the insurance carriers that the foregoing
mutual Waiver of Subrogation is contained in this Lease. The foregoing Waiver
shall not apply if it would have the effect, but only to the extent of such
effect, of invalidating any insurance coverage of Landlord or Tenant.

5.4        Indemnity of Landlord.
Tenant
shall defend, indemnify, and hold Landlord harmless from any and all costs,
claims or liability arising from (1) Tenant's use of the Leased Premises; (2)
the conduct of Tenant's business or anything else done or permitted by Tenant
to be done in or about the Leased Premises; (3) any breach or default in the
performance of Tenant's obligations under this Lease; (4) any misrepresentation
or breach of warranty by Tenant under this Lease; or (5) other acts or
omissions of Tenant.

The indemnity set forth in this
paragraph is intended to specifically cover actions brought by Tenant's own
employees, and with respect to acts or omissions during the Lease Term, shall
survive termination or expiration of this Lease. Tenant's indemnities set forth
in this Lease are specifically and expressly intended to constitute a waiver by
Tenant of its immunity, if any, under Washington's Industrial Insurance Act,
RCW Title 51, et seq., to the extent necessary to provide Landlord with a full
and complete indemnity from claims made by Tenant and/or its employees to the
full extent of its negligence. Tenant shall promptly notify Landlord of any
casualties or accidents occurring in or about the Leased Premises that may give
rise to Tenant's indemnity obligation set forth herein.

6.        
MAINTENANCE,
REPAIRS AND ALTERATIONS

6.1        Landlord's
Obligations. Landlord has delivered the Leased Premises and every
part or portion thereof with all systems included in Leased Premises cleaned,
serviced,

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working, and free from leaks and/or defects and infestations as
of the commencement of the Carlson Lease. These systems include and are not
limited to the roof, rain gutters, plumbing, electrical wiring, conduits,
plumbing, and heating /furnaces. Landlord is required to keep the roof, rain
gutters, and the parking area of the Leased Premises in good repair and free of
leaks or infestations (cockroaches, rodents, termites, etc.). Landlord shall be
responsible for the snow removal of the main paved driveways and landscaping.

  6.2      
Tenant's
Obligations. Tenant, at Tenant's expense, shall keep in good order, condition, and repair the Leased
Premises, including interior and all interior and exterior repainting and
refinishing, as needed. Tenant shall also be responsible to maintain and keep
in a good working state of repair all doors, windows, window casings, HVAC,
plumbing, and electrical wiring and conduits, and all ice and snow removal from
walkways and parking areas in surrounding Buildings B and H. If any portion of
the Leased Premises, or any major system or equipment on the Leased Premises,
cannot be fully repaired or restored, Tenant shall protect the Leased Premises
from damage and shall promptly repair any damage from burglary or attempted
burglary. Tenant shall keep the glass on all windows and doors clean and
presentable, replace immediately all broken glass on the Leased Premises; make
any necessary repairs to, or replacements of, all doors and door closure
apparatus and mechanisms; keep all plumbing clean and in a good state of
repair, including pipes, drains, toilets, basins, water heaters and those
portions of the heating system within the walls of the Leased Premises; and
shall keep all utilities, including the circuit breakers, panel boxes and meters
in a good state of repair. Additionally, it shall be Tenant's responsibility to
maintain and repair any and all improvements installed by Tenant.

  6.3      
Surrender
of Leased Premises. On the last day of the term of this Lease, or on any sooner termination, Tenant shall surrender the Leased
Premises to Landlord in good condition, ordinary wear and tear excepted. Tenant
shall repair any damage to the Leased Premises occasioned by Tenant's use
thereof or by the removal of Tenant's trade fixtures, furnishings, and
equipment, which repair shall include the patching and filling of holes and
repair of any structural damage. Tenant shall renovate the Leased Premises,
returning it substantially to its original condition prior to the Carlson
Lease.

  6.4      
Alterations
and Additions. Tenant shall make no alterations, additions, or improvements in,
on, to, or about the Leased Premises without Landlord's prior written consent,
which consent may be withheld or conditioned in Landlord's sole discretion.
Prior to making alterations, Tenant shall provide to Landlord an additional
alteration deposit, which sum shall be a good faith estimate, approved by
Landlord in writing, of the cost to renovate the Leased Premises to its
original condition. In addition to obtaining Landlord's written consent and
providing Landlord with an additional alteration deposit, prior to making
alterations, Tenant shall obtain any and all necessary permits from the city
and/or county required to make the proposed alterations to the Leased Premises
and provide a copy of all permits to Landlord. At the termination of the Lease,
Tenant shall remove any alterations, improvements, additions, or utility
installations at the expiration of the Lease Term and restore the Leased
Premises substantially to its prior condition. Should Landlord not require the
removal of a specific alteration, improvement, or addition that may be made on
the Leased Premises, said alteration, improvement, or addition shall become the
 

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property of Landlord, and remain upon and be surrendered with the
Leased Premises at the expiration of the Lease Term. Notwithstanding the
foregoing, Tenant's machinery, equipment, and trade fixtures shall remain the
property of Tenant and may be removed by Tenant subject to the provisions of
Paragraph 6.3 herein.

6.5       Entry
and Inspection. Landlord or its agents may enter the Leased Premises at
any reasonable time to determine Tenant's compliance with this Lease, to make
necessary repairs, or to show the Leased Premises to prospective tenants or
purchasers. Landlord shall not unreasonably interfere with Tenant's business
operations when exercising the entry and inspection rights set forth in this
paragraph. Tenant shall provide Landlord with a key and code to access all
buildings. Landlord shall only enter buildings with permission from Tenant or
Tenant's employees, PROVIDED however that Landlord may enter without permission
in the event of an emergency or if Landlord does not receive a response from
Tenant or Tenant's employees within 24 hours.

7.            
RECONSTRUCTION
AND RESTORATION

7.1       Minor Damage.
If
during the Term hereof the Leased Premises is damaged by fire, casualty, peril,
or otherwise, and such damage is not "substantial" (as defined in
Paragraph 7.2 herein), Landlord shall promptly repair such damage at Landlord's
expense after the application of all insurance proceeds, if any, including, but
not limited to, those provided for in Section 5 hereof, and this Lease shall
continue in full force and effect, provided, however, that the requirement to
rebuild and restore the Leased Premises shall not extend to any furnishings,
fixtures or equipment that Tenant has previously installed in the Leased
Premises, whether or not title to such items had passed to Landlord under other
provisions of this Lease. Notwithstanding the foregoing, if there are
insufficient insurance proceeds available to Landlord to rebuild and restore
the Leased Premises damaged by fire, casualty, peril, or otherwise (unless
Tenant, at its option, agrees to pay the deficiency), Landlord shall have the
right, at its option, to terminate this Lease. In addition, Tenant shall be
obligated to pay for the costs of rebuilding or restoration arising out of an
act or omission of Tenant, its agents, or employees to the extent such items
are not covered by insurance maintained in accordance with this Lease.

7.2       Substantial
Damage. If during the Term of this Lease, the Leased Premises is
destroyed or damaged by fire, casualty, peril, or otherwise, and the damage is
"substantial," then Landlord may elect to terminate this Lease by
giving Tenant written notice of such termination within sixty (60) days after
the date of such damage or destructive event. For purposes of this paragraph,
damage shall be "substantial" if (i) twenty percent (20%) or more of
the floor area of a building on the Leased Premises is rendered untenantable,
(ii) if repairs are estimated to exceed twenty-five percent (25%) of the full
construction/replacement cost of a building on the Leased Premises, or (iii)
if, regardless of the estimated amount of the repairs, the Leased Premises is
reasonably estimated to remain untenantable for Tenant's authorized use set
forth in this Lease for a period exceeding ninety (90) days. Otherwise,
Landlord shall proceed with reasonable diligence to restore the Leased Premises
to a condition comparable to that existing prior to the damage. Tenant shall
cooperate with Landlord during the period of repair and vacate all or any part
of the Leased Premises to the extent necessary for the performance of the
required work. If the improvements on Leased Premises are not rebuilt or
restored, the insurance proceeds for loss of
 

COMMERCIAL
LEASE - 9

 
 

Landlord's building, property, and loss of rent shall become the
sole property of Landlord, and the Lease shall terminate effective as of the
date of such damage or destruction.

7.3      
Repair
of Tenant's Property. Repair, replacement, or restoration of Tenant's improvements, fixtures, equipment, and personal
property shall be the responsibility of Tenant.

7.4      
Damage
Caused by Tenant. Notwithstanding any other provision herein, the cost to repair any and all damage or destruction to the
Leased Premises caused by Tenant, Tenant's employees, Tenant's improvements, or
Tenant's personal property shall be the sole responsibility of Tenant.

8.               ASSIGNMENT
AND SUBLETTING.
Tenant shall not (voluntarily or by operation of law) assign, mortgage, pledge
or encumber the Leased Premises or Tenant's leasehold estate or sublet any
portion of the Leased Premises, or otherwise transfer any interest in the
Leased Premises (including the right to possession) without Landlord's prior
written consent in each instance, which consent shall not be unreasonably
withheld. Any transfer by Tenant to an approved transferee shall not act to
release Tenant (or its guarantors) from its obligations under this Lease and
Tenant shall remain primarily liable for the performance for each and every
Term and Condition of this Lease. Except as otherwise set forth herein, any and
all sublessees of the Leased Premises shall be subject to at least the same terms
and conditions as Tenant, however Tenant may impose stricter deadlines, bases
for default, or other obligations. In the event Tenant is not available,
Landlord shall have the authority to communicate directly with sublessees with
respect to any issues arising from this Lease, emergencies, violations of
municipal, state or federal statutes, or any other issues related to the Leased
Premises.

9.               
CONDEMNATION

9.1       Entire or Substantial Taking. If all or any "substantial
portion" of the Leased Premises shall be taken under the
power of eminent domain (sometimes hereinafter referred to as
"Condemnation"), Landlord or Tenant shall have the right at its
option to terminate this Lease effective on the date the condemning authority
takes possession. Upon such termination, Tenant shall surrender possession of
the Leased Premises to Landlord. Landlord or Tenant may exercise their
termination rights by notifying the other party in writing of its option to
terminate the Lease within sixty (60) days following the date on which the
parties receive notice of the proposed taking. For purposes of this paragraph,
a sale by Landlord to any authority with power of eminent domain, either under
threat of Condemnation or while condemnation proceedings are pending, shall be
deemed a taking under the power of eminent domain under this paragraph.

9.2      
"Substantial"
Taking. For purposes of this paragraph, a Condemnation of substantial portion of the Leased
Premises shall mean any of the following:

9.2.1   If any portion of the floor area
of Tenant's leased space in a building located on the Leased Premises is taken
in the Condemnation;

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9.2.2   If twenty-five percent (25%) or
more of the value of the Leased Premises is taken in the Condemnation; or

9.2.3   If, regardless of the value of the
amount of the Leased Premises taken, the cost of repairing and restoring the
remainder of the Leased Premises for Tenant's authorized use exceeds
twenty-five percent (25%) of the value of the entire Leased Premises prior to
Condemnation.

9.3    
Partial
Taking. In the event of any Condemnation that does not result in a termination of this Lease, this Lease shall remain unaffected
except the Base Rent shall be equitably abated to the extent that Tenant is
deprived of use of the Leased Premises. In the event the Lease is not
terminated following a Condemnation, Landlord will, at its expense, restore
with reasonable diligence the remaining portions of the Leased Premises to as
near its former condition as is reasonably possible; provided, however, that
there are sufficient condemnation proceeds available to Landlord to restore the
Leased Premises, and provided further that the requirement to restore the
Leased Premises shall not extend to any furnishings, fixtures, or equipment
that Tenant had previously installed in the Leased Premises, whether or not
title of such items had passed to Landlord under other provisions of this
Lease.

9.4    
Awards.
Any award for taking of all or any part of the Leased Premises under the power of eminent domain shall be
the property of Landlord, whether such award shall be made as compensation for
diminution in value of the leasehold or for taking of the fee. Nothing,
however, shall be deemed to preclude Tenant from obtaining, or to give Landlord
an interest in, any award to Tenant for loss of, damage to, cost of removal of
Tenant's trade fixtures and removable personal property, or for damages for
cessation or interruption of Tenant's business.

10.          SIGNS.
No signs or advertising shall be erected
or placed on the exterior of the Leased Premises or anywhere else on the Leased
Premises without the prior written approval of Landlord, which approval shall
not be unreasonably withheld. Any and all signs approved by Landlord must be
installed and maintained in compliance with the requirements of any
governmental authorities having jurisdiction, and Tenant shall obtain and keep
in force any licenses required for such signage. All such signage shall be at
the sole cost and expense of Tenant. Upon the expiration or termination of this
Lease, Tenant, at its sole cost and expense, shall remove all interior and
exterior signs, logos, and advertising, and shall repair any and all damage
caused by their removal (i.e., patching and filling of holes, painting of
walls, etc.).

11.           OTHER
OBLIGATIONS OF PARTIES 

11.1   Liens. Tenant
shall pay as due all claims for work done on the Leased Premises or for
services rendered or materials furnished to the Leased Premises and shall keep
the Leased Premises free from any liens other than liens created by Landlord.
Failure by Tenant to have liens released by a contractor, sub-contractor or any
individual or entity placing a lien on the Leased Premises shall constitute a
default of the Lease. If Tenant fails to pay such claim or to discharge any
lien, Landlord may do so and collect such amount as Additional Rent. Amounts
paid by Landlord shall bear interest and be repaid by Tenant as provided in
Paragraph 13.3 herein. Such
 

COMMERCIAL LEASE -
11

 
 

payment by Landlord shall not constitute a
waiver of any right or remedy Landlord may have because of Tenant's default.

11.2   Holding Over. If
Tenant does not vacate the Leased Premises at the time required, Landlord shall
have the option to treat Tenant as a tenant from month-to-month, subject to all
of the provisions of this Lease (except that the term will be month-to-month
and the initial minimum month rent will be one hundred twenty-five percent
(125%) of the Rent then being paid by Tenant, as may have been adjusted
pursuant to Paragraph 2.3 herein), or to eject Tenant from the Leased Premises
and recover damages caused by wrongful hold over.

11.3   Non-Merger. The
voluntary or other surrender of this Lease by Tenant, or a mutual cancellation
thereof, shall not work a merger, and shall, at the option of the Landlord,
terminate any existing subtenancies, or may, at the option of Landlord, operate
as an assignment to it of any and all such subtenancies.

11.4   Priority of Lease.
This Lease shall be subject and subordinate at all times to the lien of all
mortgages and deeds of trust subsequently placed upon the Leased Premises, all
without the necessity of having further instruments executed on the part of
Tenant to effectuate such subordination. Provided, however, the subordination
of Tenant's rights hereunder is conditioned upon the mortgagee or beneficiary
under any deed of trust agreeing that Tenant's peaceable possession of the
Leased Premises and its rights under this Lease will not be disturbed so long
as Tenant is not in default under this Lease. If any party providing financing
or funding to Landlord requires, as a condition of such financing or funding,
that Tenant send such party written notice of any default by Landlord under
this Lease, giving such party the right to cure such default until it has
completed foreclosure and prevent Tenant from terminating this Lease unless
such default remains uncured after foreclosure has been completed, Tenant will
execute and deliver any agreement required by such party in order to accomplish
this purpose.

11.5   Landlord's Liability; Sale.
In the event the original Landlord hereunder, or any successor owner of the
Leased Premises, shall sell or convey the Leased Premises, all liabilities and
obligations on the part of the original Landlord, or such successor owner,
under this Lease accruing thereafter shall terminate, and thereupon all such
liabilities and obligations shall be binding upon the new owner. Tenant agrees
to attorn to such new owner.

11.6   Rules and Regulations. Tenant
agrees to comply with all reasonable, rules and regulations for the Leased
Premises adopted and published by Landlord from time to time and to cause
Tenant's sub-lessees, customers, employees, and invitees to abide by such rules
and regulations.

11.7   Parking.
Tenant's employees, agents, customers, and invitees may use the parking areas
of the Leased Premises for the temporary parking of automobiles and other
vehicles. No vehicle may be parked in the same location for more than a forty
eight (48) hour period. The parking areas, loading areas, and sidewalks of the
Leased Premises shall not be used for any purpose other than parking, loading,
and unloading of commercial vehicles and pedestrian traffic, respectively.
 

COMMERCIAL
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12.            ENVIRONMENTAL
PROVISIONS

12.1   Restrictions on Hazardous Substances. Tenant shall not cause or permit any
Hazardous Substance to be brought upon, used, stored, generated, or disposed of
on or in the Leased Premises by Tenant, its agents, employees, contractors, or
invitees, except for such Hazardous Substances as are necessary to Tenant's
authorized business. Any Hazardous Substance permitted on the Leased Premises,
and all containers therefore, shall be used, kept, stored, and disposed of in a
manner that complies with all federal, state, and local laws or regulations applicable
to the particular Hazardous Substance. Tenant shall not release or permit to be
released by any Hazardous Substance in violation of federal, state or local
environmental laws or regulations, or which may adversely affect (a) the
health, welfare, or safety of persons, whether located on the Leased Premises
or elsewhere, or (b) the condition, use, or enjoyment of the Leased Premises or
any other real or personal property.

12.2   Indemnity.
Tenant hereby agrees that it shall be responsible for all costs and expenses
relating to the use, storage, and disposal of Hazardous Substances kept on the
Leased Premises by Tenant, and Tenant shall give immediate notice to Landlord
of any violation or potential violation of the provisions of this paragraph, or
any other state, federal or local environmental law or regulation. Tenant shall
defend, indemnify, and hold Landlord and its agents harmless from and against
any claims, demands, penalties, fines, liabilities, settlements, damages,
costs, or expenses (including without limitation, a decrease in value of the
Leased Premises, damages caused by loss or restriction of rentable or useable
space, or any damages caused by adverse impact on marketing of the Leased
Premises and any and all sums paid for settlement of claims, attorney fees,
consultant and expert fees), of whatever kind or nature, known, unknown,
contingent or otherwise arising out of or in any related to (a) the release of
a Hazardous Substance arising out of an act or omission of Tenant or its
agents; (b) the presence, disposal, release, or threatened release of any such
Hazardous Substance that is on, from, or affecting the soil, water, vegetation,
buildings, personal property, persons, animals, or otherwise; (c) any personal
injury (including wrongful death) or property damage (real or personal) arising
out of or related to that Hazardous Substance; (d) any lawsuit brought or
threatened, settlement reached or government order relating to that Hazardous
Substance; or (e) any violation of any state, local or federal environmental
laws applicable to such Hazardous Substance. The provision of this paragraph
shall be in addition to any other obligations and liabilities Tenant may have
to Landlord at law or equity, and shall survive the transactions contemplated within
this Lease, and shall survive the termination of this Lease.

12.3  Definition
of Hazardous Substances. For purposes of this paragraph, the term
"Hazardous Substances" means any substance that is toxic, ignitable,
reactive, or corrosive, or that is regulated by any local government, the State
of Washington, or the United States government according to environmental laws
or regulations now in effect, or which may hereafter be enacted.

13.            DEFAULTS;
REMEDIES 

13.1   Default. The following shall be events of default:

COMMERCIAL
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13.1.1   Payment Default.
Failure of Tenant to make any Rent payment under this Lease within ten (10)
days after such payment is past due.

13.1.2   Unauthorized Transfer.
Tenant makes any transfer without Landlord's prior written consent as required
under Paragraph 8.

13.1.3   Abandonment of Leased Premises.
Tenant
fails to occupy or use the Leased Premises for the purposes permitted by this
Lease for a total of twenty (20) consecutive business days or more during the
Lease Term, unless such failure is excused under other provisions of this
Lease.

13.1.4   Default in Other Covenant.
Failure of Tenant to comply with any other Term or Condition or fulfill any
other obligation of this Lease within ten (10) calendar days after written
notice by Landlord specifying the nature of the default with reasonable
particularity. No notice and no opportunity to cure shall be required if
Landlord has previously given Tenant notice of failure to comply with such Term
or Condition, or fulfill such other obligation of this Lease during the
preceding calendar year.

13.1.5   Insolvency Defaults.
Dissolution, termination and existence, insolvency on a balance sheet basis, or
business failure of Tenant; the commencement by Tenant of a voluntary case
under the federal bankruptcy laws or under any other federal or state law
relating to Tenant's insolvency or debtor's relief; the entry of a decree or
order for relief against Tenant in an involuntary case under the federal
bankruptcy laws, or under any other applicable federal or state law relating to
Tenant's insolvency or debtor's relief; the appointment of or the consent by
Tenant to the appointment of a receiver, trustee or custodian of Tenant; an
assignment for the benefit of creditors by Tenant; Tenant's failure generally
to pay its debts as such debts become due; the making or suffering by Tenant of
a fraudulent transfer under applicable federal or state law; concealment by
Tenant of any of its property in fraud of creditors; the making or suffering by
Tenant of a preference within the meaning of federal bankruptcy law; or the
imposition of a lien through legal proceedings or distraint upon any of the
property of Tenant, except for Tenant's ownership in Giga Watt, Inc., which is
not discharged or bonded. During any period in which there is a guarantor(s) of
this Lease, each reference to "Tenant" in this paragraph shall be
deemed to refer to "guarantor or tenant," separately.

13.2   Remedies on Default. Upon default, Landlord may exercise any one or more of the following remedies,
or any other remedy available under applicable law:

13.2.1   Termination
of Lease. Landlord shall have the immediate option to terminate this
Lease and all rights of Tenant hereunder. In the event that Landlord shall
elect to terminate this Lease, Landlord may recover from Tenant: (i) the amount
of any unpaid rent which has been earned at the time of such termination; plus
(ii) the amount by which the unpaid rent which would have been earned after
termination and, for the balance of the Lease term, exceeds the amount of such
rental loss that Tenant proves that could have been reasonably avoided; plus
(iii) any interest charged on delinquent rent; plus any other amount to
compensate Landlord for the detriment proximately caused by Tenant's failure to
perform Tenant's obligations under this Lease.
 

COMMERCIAL LEASE - 14

 
 

13.2.2   Retake Possession.
To the extent permitted by law, Landlord may re-enter and retake possession of
the Leased Premises, on three (3) days advance notice, either by summary
proceedings or any other applicable action or proceeding, or otherwise.
Landlord may use the Leased Premises for Landlord's own purposes or relet it
upon any reasonable terms without prejudice to any other remedies that Landlord
may have by reason of Tenant's default. None of these actions will be deemed an
acceptance or surrender by Tenant.

13.2.3   Relet the Leased Premises.
Landlord, at its option, may relet the whole or any part of the Leased
Premises, from time to time, either in the name of Landlord or otherwise, to
such tenants, for such terms ending before, on or after the expiration date of
the Lease term, at such rentals and upon such other conditions (including
concessions and free rent periods) as Landlord, in its sole discretion, may
reasonably determine to be appropriate. Landlord, at its option, may make such
physical changes to the Leased Premises as Landlord, in its sole discretion,
considers advisable or necessary in connection with any such reletting or
proposed reletting without relieving Tenant of any liability under this Lease
or otherwise affecting Tenant's liability. In the event Landlord elects to
relet the Leased Premises, rent received by Landlord for such reletting shall
be applied; first, to the payment of any cost of reletting; second, to pay the
cost of any alterations or repairs to the Leased Premises; third, to the
payment of indebtedness other than rent owed by Tenant to Landlord; and fourth,
to the payment of rent due and unpaid under the Lease, and the residue, if any,
shall be held by Landlord and applied to the payment of future rent as the same
may become due and payable. Should rent received from the reletting of the
Leased Premises during any month be less than the rent payable under the terms
of the Lease by Tenant, then Tenant shall pay the deficiency to Landlord
immediately upon demand.

13.2.4   Damages for Default.
Whether or not Landlord retakes possession or relets the Leased Premises,
Landlord may recover all damages caused by the default (including, but not
limited to unpaid rent, attorney's fees relating to the default, and costs of
reletting). Landlord may sue periodically to recover damages as they accrue
during the remainder of the Lease term without barring a later action for
further damages. Upon the occurrence of a payment default, Landlord may bring
an action for accrued damages plus damages for the remaining Lease Term equal
to the difference between the rent specified in this Lease and the reasonable
rental value of the Leased Premises for the remainder of the Term, discounted
to the time of judgment at the rate of three percent (3%) per annum.

13.3   Cure of Default.
Without prejudice to any other remedy for default, Landlord may perform any
obligation or make any payment required to cure a default by Tenant. The cost
of performance, including attorney's fees and all disbursements, shall
immediately be repaid by Tenant upon demand, together with interest from the
date of expenditure until fully paid at the same rate as the Bank Prime Loan
Rate as published by The Federal Reserve Bank (https://www.federalreserve.gov/releases/h15/) currently at 3.50%.

13.4   Remedies Cumulative.
Any right or remedy Landlord may have under this Lease arising out of Tenant's
breach of any covenant of this Lease shall be in addition to any other right or
remedy for such breach provided by law.

COMMERCIAL LEASE - 15

 
 

14           TENANT IMPROVEMENTS. 
Except as set forth in this Lease or in a separate written agreement between Landlord and Tenant, Tenant
shall be solely responsible. at its cost and expense, to perform all work
required to ready the Leased Premises for Tenant's use and occupancy. All work
to be performed by Tenant to ready the Leased Premises for occupancy shall be
subject to and conducted in accordance with the provisions of Paragraph 6.4 of
this Lease.

15.          
MISCELLANEOUS

15.1   Waivers. No waiver by Landlord of performance
of any provision of this Lease shall waive or prejudice Landlord's right to
otherwise require performance of the same provision or any other provision, and
Landlord's acceptance of Rent or Additional Rent shall not waive or prejudice
Landlord's remedies for Tenant's default, including the right to repossess the
Leased Premises or to forfeit or terminate the Lease.

15.2    Recording. Tenant shall not record this
Lease without the prior written consent of Landlord, which consent Landlord may
withhold in its sole discretion.

15.3   Neighboring Businesses. Tenant understands and agrees that neighboring business activity may affect its
business operations and shall not be a basis for Tenant to breach the terms of
this Lease or seek revision of said terms. Should Tenant have issues with
neighboring tenants, Tenant shall first discuss any issues with Landlord to
determine the proper remedy, if any. Neither Tenant nor Tenant's employees
shall harass any other neighboring tenant or business. Any harassment by Tenant
or Tenant's employees shall constitute a default.

15.4   Notices. All notices
provided for or permitted to be given pursuant to this Lease, except those for
Overages under Section 4.1, shall be in writing and shall be delivered in
person or sent by registered or certified United States mail, postage prepaid,
return receipt requested, or by overnight courier, to the addresses set out
herein or to such other addresses as are specified by no less than ten (10)
days prior written notice delivered in accordance herewith:

	
		To Landlord:

		

 

		To Tenant:
	
		TNT Business Complexes, LLC

		380 Leslie Way

		East Wenatchee, WA 98802

		Dave Carlson/Enterprise Focus Inc.

		2504 Columbia NW

		East Wenatchee, WA 98802

 

All such notices shall be deemed effectively given and
delivered three (3) days after the postmark date of mailing, the day after
delivery to the overnight courier, or, if delivered personally, when received.
Rejection or other refusal to accept or the inability to deliver because of a
changed address of which no notice was given in accordance with the time period
provided herein shall be deemed to be receipt of the notice sent.

Notices under Section
4.1 regarding Overages shall be sent to the following email address:

BuzzDavenow@gmail.com

COMMERCIAL
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15.5   Construction. (a) This Lease shall be construed and
governed by the laws of the State of Washington; (b) the invalidity or
unenforceability of any provision hereof shall not affect or impair any other
provision hereof; (c) this Lease constitutes the entire agreement of the
parties and supersedes all prior agreements or understandings between the
parties with respect to the subject matter hereof; (d) this Lease may not be
modified or amended except by written agreement signed and acknowledged by both
parties; (e) if there is more than one tenant, the obligations hereunder
imposed upon Tenant shall be joint and several; (f) time is of the essence of
this Lease in each and every provision hereof; and (g) nothing contained herein
shall create the relationship of principal and agent or of partnership or of
joint venture between the parties hereto and no provisions contained herein
shall be deemed to create any relationship other than that of Landlord and
Tenant.

15.6    Successor. Subject to any limitations on assignments herein, all of
the provisions of this Lease shall inure to the benefit of and be binding upon
the successors and assigns of the parties hereto.

15.7   Attorney's Fees. In the event of any dispute arising
out of or relating to this Lease, whether or not suit or other proceeding is
commenced, and whether in mediation, arbitration, at trial, on appeal, in
administrative proceedings, or in bankruptcy (including, without limitation,
any adversary proceeding or contested matter in any bankruptcy case), the
prevailing party shall be entitled to its costs and litigation expenses
incurred, including its reasonable attorney fees. Venue shall be in Douglas
County, Washington.

15.8    No Offer. This Lease is submitted to Tenant on
the understanding that it will not be considered an offer and will not bind
Landlord in any way until (a) Tenant has duly executed and delivered the
original to Landlord, and (b) Landlord has executed and delivered one copy to
Tenant.

 

 

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COMMERCIAL LEASE - 18

 

 

 

 

 

COMMERCIAL LEASE - 19

 

  

EXHIBIT A

 

Legal
Description

A part of Tract 40 of the East Wenatchee Land Company's
Plat of Section Thirteen (13), Township Twenty-Two (22) North, Range Twenty
(20), East of the Willamette Meridian, Douglas County, Washington, more
particularly described as follows:

Commencing at the Easterly corner of
said Tract 40; thence North 43°25'20" West along the Northeasterly
boundary of said Tract 40, which is the Northeasterly Right-of-Way Limit of
Highline Drive, for 274.00 feet; Thence South 46°
34'40" West for 30.00
feet to a point on the Southwesterly Right-of-Way Limit of said Highline Drive,
the True Point of Beginning for this description; Thence continuing South
46°
34'40" West for 570.0 feet; Thence South 43°
25'20" East for 87.00
feet; Thence North 46°
34'40" East for 570.00 feet to the aforesaid
Southwesterly Right-of-Way Limit of Highline Drive; Thence North 43°
25'20"
West along said Right-of-Way Limit for 87.00 feet to the True Point of
Beginning; TOGETHER WITH:

Lot 1, Emmet Johnson Short Plat as recorded in Book E of
Plats at Page 79, records of Douglas County, Washington.

APN. 402-000-040-12
  

 

 

 

 

 

 

 

COMMERCIAL
LEASE - 20

 
 

EXHIBIT B

 

Location of Buildings B and H

	 

 

 

COMMERCIAL
LEASE - 21

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