Document:

LEASE AGREEMENT

Exhibit 10.3

LEASE AGREEMENT

(Triple Net)

Landlord:

C & R Fiveplex, LLC

a Delaware limited liability company

Tenant:

Whole Living, Inc.

a Nevada corporation

Tax I.D. #: 87-0621709

LEASE AGREEMENT

THIS LEASE AGREEMENT (“Lease”) is made and entered into as of the 7 day of April, 2006, by and between the following Parties:

Landlord:

C&R Fiveplex, LLC 

a Delaware limited liability company

Tenant:

Whole Living, Inc.

a Nevada corporation

WITNESSETH:

WHEREAS, Landlord owns certain real property located in the City of Orem, Utah County, State of Utah (the “Property”); and

WHEREAS, the Property is part of an Office Park and there is situated on the Property a building located at 1133 North 1430 West, Orem, Utah (the “Building”); and

WHEREAS, Tenant desires to lease from Landlord a portion of the Building consisting of leasable space of 14,539 square feet (the “Premises”), together with the right to use the common facilities associated therewith, and Landlord is willing to enter into such a lease, all on the terms, conditions, and provisions and for the purposes hereinafter set forth.

NOW, THEREFORE, in consideration of the promises, covenants, and agreements hereinafter set forth, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the Parties enter into this Lease and agree as follows:

SECTION 1- PREMISES

1.1

Lease of Premises.  Landlord leases to Tenant and Tenant leases from Landlord a portion of the Building consisting of 14,539 square feet of gross leasable area (herein referred to as the “Premises”), more particularly described as outlined on attached Exhibit “A.”

1.2

Condition of Premises.  Tenant has inspected the Premises and has been given the opportunity prior to the execution of this Lease to conduct such tests, investigations, and examinations as Tenant desires or deems appropriate, and Tenant hereby accepts the Premises in its present condition, “as is,” without obligation of any kind or nature on the part of Landlord to repair, improve, alter, cleanup, or modify the Premises or any part thereof.

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1.3

Common Areas.  The Tenant shall have the right to use, subject to reasonable rules of general applicability to tenants of the Property from time to time made by the Landlord and of which the Tenant is given notice, the parking areas, courtyard, and common walkways and driveways necessary and appropriate for use of the Premises under this Lease (the “Common Areas”).

SECTION 2- TERM

2.1

Fixed Term.  The term of this Lease shall be for a period of seven (7) years commencing ninety days after execution of this Lease by all parties (the “Commencement Date”), and expiring on the date that is seven years thereafter (the “Initial Term”).

2.2

Extension of Term.  The term of this Lease shall automatically be extended for one (1) additional consecutive period of five (5) years (the “Extension Period”), such Extension Period commencing on the expiration date of the Initial Term and expiring five years thereafter (the “Extended Term” and, together with the Initial Term, the “Term”), subject to the same terms and conditions contained in this Lease, provided that minimum monthly rent under Section 3 hereof for said Extended Term shall be increased in accordance with the provisions of Section 3.2 hereof.  Tenant shall have the option to terminate the Extended Term as of the last day of the Initial Term or any Extension Period by providing written notice of its intention to terminate to Landlord on or before 120 days prior to the expiration of the Initial Term or such Extension Period, as the case may be.

2.3

Early Termination Option.  Tenant shall have the right to terminate this Lease upon 365 days’ advance written notice to Landlord, provided that Tenant and Landlord have entered into another written lease or other written agreement, upon terms and conditions mutually acceptable to the parties, providing for Tenant’s lease and occupancy of other leased space provided by Landlord or an affiliate of Landlord.

SECTION 3- RENT, MAINTENANCE CHARGES, TAXES, & EXPENSES

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3.1

Base Rent.  Subject to any increases under Section 3.2 hereof, Tenant shall pay to Landlord as minimum annual rent, without deduction, setoff, prior notice, or demand, the sum equal to $7.041 per square foot per year ($0.5867 per square foot per month), which is equal to $102,368.04 per year (the “Base Rent”), payable in equal monthly installments of $8,530.67 per month.  [Note: such rent is a blended rate calculated on the basis of $.75/s.f./month for 3,750 s.f. of office, restrooms and production space, and $0.53/s.f./month for 8,889 s.f. of concrete floor warehouse space and 1,900 s.f. of mezzanine storage space.]  Each such installment shall be due one month in advance on the first day of each month, commencing on the Commencement Date, and continuing through the Initial Term and the Extended Term.  Base Rent shall be increased during the Initial Term and any Extended Term in accordance with the provisions of Section 3.2 hereof.  Any monthly installment of Base Rent for any partial month shall be prorated at the rate of 1/30th of the monthly Base Rent per day.  All rent shall be paid to Landlord at the address to which notices to Landlord are given.

3.2

Increase of Base Rent.  During the Term, the Base Rent shall be adjusted on each annual anniversary of the Commencement Date (the “Adjustment Date”), by multiplying the Base Rent for the month immediately prior to the applicable Adjustment Date by one hundred three percent (103%).  A schedule of Base Rent is attached hereto as Exhibit “B”.

3.3

Taxes and Other Expenses.  Tenant agrees to be responsible for, and shall directly and timely pay, all property taxes associated with the Premises and the maintenance charges and other expenses described below.  Such costs and expenses shall include, but shall not be limited to upkeep, painting, repairs, replacements and improvements, sweeping and cleanup, window cleaning, utilities, telephone, internet connections, heating and air conditioning, utility-related services including fire line water service charges, building security, premiums for liability, property damage and fire insurance, and all real and personal property taxes.

3.4

Late Fee.  In the event Landlord does not receive the Base Rent or Maintenance Fee for any given month on or before the fifth (5th) day of such month, Tenant shall pay to Landlord, together with the Base Rent for such month, and Landlord shall be entitled to receive from Tenant a late payment fee in an amount equal to five percent (5%) of Tenant’s late payment.  Tenant acknowledges and agrees that this sum is not a penalty but is a reasonable estimate of the administrative costs and expenses which Landlord will incur as a result of Tenant’s late payment.  Any charges imposed for late payment charges pursuant to this Section 3.4 shall be in addition to all other amounts owing pursuant to the terms and conditions of this Lease, including without limitation interest charges.

3.5

Triple Net Lease.  It is the intent of the parties that the rent applicable under Sections 3.1 and 3.2 hereof shall, except as may be specifically provided to the contrary in this Lease, be absolutely net to Landlord throughout the term hereof and that Tenant shall, as is provided for and described with more specificity in the various other Sections of this Lease, pay for all building services, costs and expenses in connection with its use of the Premises, including utility services and costs, costs and expenses of maintenance and repair of the Premises, landscaping maintenance, janitorial and cleaning services and expenses, real and personal property taxes and insurance relating or allocable to the Premises or the activities thereon, and any other items of cost or expense in any way incurred or necessary in 

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connection with the use, occupancy, or operation of the Premises.  In furtherance of such intent, and not by way of limitation, each item of cost or expense or other amount which is required by this Lease to be paid by Tenant whether directly or to or for the account of Landlord shall be billed directly to and timely paid by Tenant no later than the due date of the particular item of cost or expense or other amount concerned.  The fact that Tenant’s use or occupancy of the Premises may be disturbed or interrupted for any reason other than the negligent acts of Landlord shall not in any way suspend, abate, reduce, or alter the obligation to pay rent hereunder, except as may be specifically provided to the contrary in this Lease.

3.6

Personal Property Taxes.  Tenant shall pay before delinquency all taxes, assessments, license fees, and other charges (“taxes”) that are levied and assessed against the trade fixtures and personal property of Tenant installed or located in or on the Premises, and that become payable during the Term.  On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments.

3.7

Payment.  Except to the extent expressly provided for elsewhere in this Lease, there shall be no abatement or apportionment at any time of the Base Rent or any other sums, amounts, payments, or impositions to be paid by Tenant under any of the terms, covenants, conditions, and provisions of this Lease during the Term.  All rent and other amounts payable under the terms and provisions of this Lease shall be made in lawful money of the United States.

3.8

Tenant Improvements.  Landlord shall provide turnkey space for Tenant’s occupancy hereunder and shall construct the tenant improvements described on Schedule 3.8 attached hereto (the “Tenant Improvements”).  Tenant shall have a Tenant Improvement allowance of $275,000 and shall be responsible for, and shall pay to Landlord on demand, all costs and expenses incurred in connection with the construction and installation of the Tenant Improvements in excess of the amount of said allowance.  Additionally, Tenant shall provide, at Tenant’s sole cost and expense, air compressors for Tenant’s “clean rooms”, stainless steel sinks, and lockers to be located in areas identified by Tenant.

SECTION 4 - USE; LIMITATIONS ON USE

4.1

Use.  Tenant shall use the Premises for general office, food blending, mixing and production, product assembly, bottling and labeling, light manufacturing, warehouse, distribution and assemblage purposes, and for no other use without Landlord’s prior written consent.

4.2

Limitations on Use.  Tenant’s use of the Premises as provided in this Lease shall be in accordance with the following:

Compliance with laws.  Tenant shall comply with all laws concerning the Premises or Tenant’s use of the Premises, including, without limitation, the obligation to discharge all sewage and wastewater in strict conformity with local, state and federal laws, rules and regulations, and the obligation at Tenant’s cost to alter, maintain, or restore the Premises in compliance and conformity with all laws relating to the condition, use, or occupancy of the Premises during the Term.

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Waste; nuisance.  Tenant shall not use the Premises in any manner that will constitute waste, nuisance, or unreasonable annoyance (including, without limitation, the use of loudspeakers or sound or light apparatus that can be heard or seen outside the Premises) to owners or occupants of adjacent properties.  Tenant shall not use the Premises for sleeping, washing clothes, or the preparation, manufacture, or mixing of anything that might emit any odor or objectionable noises or lights onto adjacent properties.

Hazardous Substances.  Tenant shall not bring upon the Premises, or in the Premises, use on the Premises, or permit to be brought upon, stored, or used upon the Premises, any wastes, petroleum products, or hazardous substances.  Tenant shall hold harmless and indemnify Landlord from any and all damage, loss, injury, or liability of any nature arising from or associated with Tenant’s use, storage, disposal, release or bringing upon the Premises any hazardous substances as defined by local, state or federal laws, rules, regulations or ordinances.

Insurance.  Tenant shall not do or permit anything to be done in or about the Premises or bring or keep anything therein which will in any way increase the existing rate of or premium for fire or other insurance covering the Building.

Plumbing.  The plumbing facilities within the Building shall not be used by Tenant for any other purpose than that for which they are designed and constructed, and no foreign substance of any kind shall be thrown therein.  The expense of any breakage, stoppage or damage to such plumbing facilities resulting from a violation of this provision shall be borne by Tenant.

Locks.  Tenant shall not alter any lock or install any new or additional locks or any bolts on any door of the Premises, without immediately providing keys to Landlord.

Heavy Equipment.  Safes and any other heavy equipment or objects shall be located within the Premises only in those areas and on such supports as are designated by Landlord.  Tenant shall not place any safes or heavy objects within the Premises without first obtaining appropriate direction and approval from Landlord.

Telephones/Utilities.  Tenant shall not install any telephone or other special utility lines within the Premises without first obtaining Landlord’s consent.  Landlord shall designate the areas with the Premises in which telephone and other special utility lines and related equipment may be installed and how and where such lines are to be introduced.

 

Security.  Tenant shall securely close and lock all doors and windows in the Premises before leaving the Building each day and shall insure that all water faucets and water apparatus and other equipment within the Premises are shut off so as to prevent waste or damage.  Notwithstanding anything herein contained to the contrary, Tenant shall be responsible for any damage to Landlord’s property or to the property of other tenants within the Building caused by 

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Tenant’s failure to comply with the provisions of this subparagraph, unless such damage is covered by, and paid for by Landlord’s insurance.

Vending Machines.  Tenant may install vending machines within the Premises for its own use only.  If any such vending machines are desired by Tenant, such shall be installed by Tenant at Tenant’s expense following Landlord’s approval of such installation.

Floor Coverings.  Tenant shall not lay linoleum, tile, carpet or other similar floor covering so that the same shall be affixed to the floor of the Premises in any manner except as approved, in writing, by Landlord.

SECTION 5 – MAINTENANCE AND ALTERATIONS

5.1

Tenant’s Maintenance.  During the Term of this Lease, Tenant agrees to keep and maintain, in good order, condition, and repair the interior of the Premises, including, by way of example only and not by way of limitation, interior walls, wall and window coverings, light fixtures, floor coverings, plumbing fixtures, glass and partitions.  Tenant shall use carpet protectors or mats under all desk chairs located on carpeted areas.

5.2

Landlord’s Maintenance and Repair.  Landlord shall maintain in good order, condition, and repair all external parts of the Building including the roof, and shall maintain in good order, condition, and repair all plumbing and heating, air conditioning and ventilation equipment located upon the Premises, except to the extent that damage to the same is caused by Tenant or Tenant’s employees, agents, or invitees.  Landlord shall be responsible for snow and ice removal from parking areas and walkways which serve the Premises, in a manner consistent with reasonable practices for this area, and for landscape maintenance, the costs of which shall be billed monthly to Tenant by Landlord and shall be timely paid by Tenant as additional rent hereunder.

5.3

Alterations.  Tenant shall not make or allow any alterations to the Premises without Landlord’s prior written consent.  Any alterations made shall be constructed by Landlord, or by parties not objectionable to Landlord, and shall be paid for by Tenant and shall remain on and be surrendered with the Premises on expiration or termination of the Term and shall be the property of Landlord, except that Landlord can elect within thirty (30) days before expiration of the Term, or within thirty (30) days after termination of the Term and Tenant’s surrender of the Premises, to require Tenant to remove any alterations that Tenant has made to the Premises.  If Landlord so elects, Tenant at its cost shall restore the Premises to their condition existing prior to Tenant’s alterations, before the last day of the Term, or within twenty (20) days after notice of election is given, whichever is later.

If Tenant makes any alterations to the Premises as provided in this Section, the alterations shall not be commenced until ten (10) days after Landlord has received notice from Tenant stating the date the installation of the alterations is to commence.

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5.4

Mechanics’ Liens.  Tenant shall pay all costs for construction done by it or caused to be done by it on the Premises as permitted by this Lease.  Tenant shall keep the Premises free and clear of all mechanics’ liens resulting from construction done by or for Tenant.  Tenant shall have the right to contest the correctness or the validity of any such lien if, immediately on demand by Landlord, Tenant procures and records a lien release bond issued by a corporation authorized to issue surety bonds in Utah in an amount equal to one and one-half (11⁄2) times the amount of the claim of lien.  The bond shall provide for the payment of any sum that the claimant may recover on the claim (together with attorney’s fees and costs of suit, if it recovers in the action).

SECTION 6 - INDEMNITY AND EXCULPATION; INSURANCE

6.1

Indemnity of Landlord.  Tenant shall hold Landlord harmless from any and all damages to any person or property occurring in, on, or about the Premises, except for damages caused solely by the negligence or willful acts of Landlord.

6.2

Public Liability and Property Damage Insurance.  Tenant at its cost shall maintain public liability and property damage insurance and products liability insurance with a single combined liability limit of not less than $2,000,000, and property damage limits of not less than $500,000, insuring against all liability of Tenant and its authorized representatives arising out of and in connection with Tenant’s use or occupancy of the Premises.

All public liability insurance, products liability insurance, and property damage insurance shall insure performance by Tenant of the indemnity provisions of Section 6.1 and shall contain cross-liability endorsements.

6.3

Increase in Amount of Public Liability and Property Damage Insurance.  Not more frequently than each two (2) years, if, in the opinion of Landlord’s lender or of the insurance broker retained by Landlord, the amount of public liability and property damage insurance coverage at that time is not adequate, Tenant shall increase the insurance coverage as required by either Landlord’s lender or Landlord’s insurance broker. 

6.4

Tenant’s Fire Insurance.  Tenant at its cost shall maintain on all its personal property, Tenant’s improvements, and alterations, in, on, or about the Premises, a policy of standard fire and extended coverage insurance, with vandalism and malicious mischief endorsements, to the extent of their full replacement value.  Unless this Lease is terminated pursuant to the provisions of Sections 7 or 8 hereof, the proceeds from any such policy shall be used by Tenant for the replacement of personal property or the restoration of Tenant’s improvements or alterations.

6.5

Additional Requirements.  All insurance policies hereunder will (i) be taken out with insurers acceptable to Landlord; (ii) be in a form reasonably satisfactory to Landlord; (iii) be non-contributing with, and will apply only as primary and not excess to any other insurance available to Landlord or Landlord’s; (iv) contain an undertaking and agreement by the insurers to notify Landlord and Landlord’s mortgagee(s) in writing not less than thirty (30) days before any material change, cancellation, or termination of any such insurance; (v) contain provisions causing insurance proceeds to be made 

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payable to Landlord; and (vi) name Landlord as an additional insured.  Tenant shall deliver certificates of insurance, reasonably acceptable to Landlord, executed by Tenant’s insurers evidencing that the required insurance is in force, or, if required by Landlord or Landlord’s mortgagee, Tenant will deliver certified copies of each insurance policy as soon as possible after the placing of the insurance.  No review or approval of any insurance certificate or insurance policy by Landlord derogates from or diminishes Landlord’s rights under this Lease.

6.6

Waiver of Subrogation.  The parties release each other, and their respective authorized representatives, from any claims for damage to any person or to the Premises and to the fixtures, personal property, Tenant’s improvements, and alterations of either Landlord or Tenant in or on the Premises that are caused by or result from risks insured against under any insurance policies carried by the parties in force at the time of any such damage to the extent that such policies cover the loss or damage.

6.7

Cancellation of Insurance.  Tenant shall not do or permit anything to be done that results in the cancellation or threatened cancellation or the reduction of coverage, or threatened reduction of coverage, under any insurance policy on the Premises or any improvements located thereon or therein.

6.8

Tenant’s Failure to Pay.  Tenant agrees that should Tenant fail to comply with this Section 6, Landlord shall have the right to obtain said insurance and pay the premiums therefor, and in such event the entire amount of such premiums shall be immediately paid by Tenant to Landlord, together with interest thereon at the lesser of eighteen percent (18%) per annum or the maximum rate an individual is permitted by law to charge; provided, however, Landlord shall have no obligation or duty to obtain said insurance in the event of Tenant’s failure to provide such insurance and Tenant shall hold Landlord harmless from any losses due to such failure.

6.9

Indemnification.  Tenant hereby agrees to defend, pay, indemnify and hold harmless the Landlord from and against any and all claims, demands, fines, suits, actions, losses, damages, costs, expenses (including attorneys’ fees), proceedings, orders, decrees or judgments of any kind or nature by or in favor of anyone whomsoever resulting from or in connection with any loss of life, bodily or personal injury, or property damage arising, directly or indirectly, out of or from or on account of any occurrence in, upon, at or from the Premises occasioned wholly or in part through the use or occupancy of the Premises, or resulting from any act or omission or negligence of Tenant, or any invitee or licensee of Tenant, or any employee, agent or contractor of the same in, upon, at or from the Premises.  Tenant and all those claiming by, through, or under Tenant shall store their property in and shall occupy and use the Premises and any improvements therein and appurtenance thereto solely at their own risk, and Tenant and all those claiming by, through, or under Tenant hereby release Landlord, to the full extent permitted by law, from all claims of every kind, including loss of life, personal or bodily injury, damage to merchandise, equipment, fixtures or other property, or damage to business or for business interruption, arising, directly or indirectly, out of or on account of such occupancy and use.  Landlord shall not be responsible or liable for damages at any time to Tenant, or to those claiming by, through, or under Tenant, for any loss of life, bodily or personal injury, or damage to property or business, or for business interruption, that may be occasioned by or through the acts, omissions or negligence of any other persons, 

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or any other Tenants.  Landlord shall not be responsible or liable for damages at any time for loss of life, or injury or damage to any person or to any property or business of Tenant, or those claiming by, through or under Tenant, caused by or resulting from the bursting, breaking, leaking, running, seeping, over-flowing or backing up of water, steam, gas, sewage, snow or ice in or around any part of the Premises, or caused by or resulting from acts of God or the elements.  Tenant expressly acknowledges that all of the foregoing provisions of this Article shall apply and become effective from and after the date Landlord shall deliver possession of the Premises to Tenant.

6.10

Assumption of Risk.  Anything herein to the contrary notwithstanding, after commencement of the term of this Lease, Tenant assumes full risk of damage to its personal property, fixtures, equipment, tools, improvements, stock, goods, wares, or merchandise that it may have in or on or about the Premises, where such damage results from fire, lightning, extended coverage perils, flood, or any catastrophe, regardless of cause or origin.  Landlord shall not be liable to Tenant or anyone claiming by, through or under Tenant, including Tenant’s insurance carrier or carriers, for any loss or damage resulting from fire, lightning or extended coverage perils, or from an act of God.  Landlord shall not be liable to any insurance carrier for damages insured against, either directly or by way of subrogation.

6.11

Release of Landlord.  Landlord shall not be liable to Tenant for any damage to Tenant or Tenant’s property from any cause.  Tenant waives and releases all claims against Landlord for damage or injury to person or property arising for any reason, except for damage caused by Landlord’s gross negligence or intentional misconduct.

SECTION 7 - DESTRUCTION

7.1

Destruction by Fire or Other Casualty.  If the Premises shall be damaged by fire, unavoidable accident, or other casualty covered by fire and extended coverage insurance and such damage is not caused by the act, or failure to act, of Tenant, its employees, agents, licensees, permittees, or invitees, Landlord shall cause such damage to be repaired.  If the Premises shall be rendered wholly untenantable by reason of such occurrence, Landlord shall cause such damage to be repaired; provided, however, in the event the Premises cannot be repaired within one hundred twenty (120) days, Landlord may, at its election, made within thirty (30) days following the occurrence of such damage or destruction, elect to terminate this Lease.  In the event of such termination, rent shall be abated from and after such date of the damage or destruction.  In the event Landlord does not terminate this Lease following damage or destruction of the Premises, Landlord shall commence and complete a restoration of the Premises within a reasonable time after such damage or destruction.  Tenant agrees to give Landlord immediate notice of any damage to the Premises by fire, the elements, or any other casualty.

7.2

Loss or Damage.  Landlord shall not be liable for:

(a)

Any loss or damage to any property of Tenant or of others located on the Premises, by theft or otherwise; or

(b)

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pipes, appliances, or plumbing works or from the roof, street, or subsurface or from any other place whereby dampness or by any other cause of whatsoever nature, unless such damage shall be caused by the willful acts or gross negligence of Landlord, its agents, representatives, or employees.  Except for loss, damage, or injury resulting solely from the willful acts or gross negligence of Landlord, its agents, representatives, or employees, all property of Tenant kept or stored on the Premises shall be so kept at or stored at the risk of Tenant only.  Tenant shall hold Landlord harmless from any claims arising out of damage to or loss of property and from any claims for personal injury, for any event occurring on the Premises, unless such damage shall be caused solely by the willful acts or negligence of Landlord, its agents, representatives, or employees.

7.3

Abatement or Reduction of Rent.  In case of damage or destruction, and in the event this Lease is not terminated pursuant to Section 7.1 hereof, the rent shall be abated wholly or proportionately, as the case may be, until the damage shall be repaired and the Premises restored; provided, however, that in the event such damage or destruction is caused by Tenant, its agents, representatives, or employees there shall be no abatement of rent.

7.4

Loss During Last Part of Term.  If destruction to the Premises occurs during the last year of the Term, and the cost of restoration exceeds ten percent (10%) of the then replacement value of the Premises, either Landlord or Tenant can terminate this Lease by giving notice to the other not more than fifteen (15) days after the destruction.

SECTION 8 - CONDEMNATION

8.1

Condemnation.  In the event the whole or any part of the Premises shall be taken or condemned for a public or quasi-public use or purpose by any competent authority and as a result thereof the balance of said Premises cannot be used by Tenant for the same purpose as before such taking or condemnation, then and in either of such events, the Term of this Lease shall terminate when possession of the Premises shall be taken by the condemning authorities.  Any award, compensation, or damages (hereinafter sometimes referred to as the “award”) for that portion of the Premises which does not include any personal property of Tenant shall be paid to and be the property of Landlord.  It is understood that in the event of the termination of this Lease as aforesaid, neither Landlord nor Tenant shall have any claim against the other for the value of any unexpired Term of this Lease, and Tenant shall have no right or claim to any part of the award on account thereof, except as may pertain to any tangible personal property of Tenant which it would be entitled to remove upon any termination of this Lease.

8.2

Partial Condemnation.  In the event only a part of the Premises shall be taken or condemned for a public or quasi-public use or purpose by any competent authority, and as a result thereof the balance of said Premises can be used for the same purpose as before such taking or condemnation, this Lease shall not terminate as a result thereof and Landlord, at its sole cost and expense, but only to the extent of the award for such taking received by Landlord, shall repair and restore the Premises and improvements thereon.  The determination of whether or not the Premises can be used for the same purpose shall be made by Tenant, subject to the requirement that such determination is reasonably made 

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by Tenant.  Any award paid as a consequence of such taking or condemnation, shall be paid to Landlord and be applied to the cost of said repairing and restoration.  Any sums remaining after such application shall be the property of Landlord.  There shall be a reduction in the rental in direct proportion to the reduction of the Premises as a result of such taking.

SECTION 9 - ASSIGNMENT

9.1

Prohibition Against Assignment, Subletting, and Encumbering.  Tenant shall not assign or encumber its interest in this Lease or in the Premises, or sublease all or any part of the Premises, or allow any other person or entity (except Tenant’s authorized representatives) to occupy or use all or any part of the Premises, without first obtaining Landlord’s written consent.  Any assignment, encumbrance, or sublease without Landlord’s consent shall be void and, at Landlord’s election, shall constitute a default.  No consent to any assignment, encumbrance, or sublease shall constitute a further waiver of the provisions of this Section.

Any dissolution, merger, consolidation, or other reorganization of Tenant, or the sale or other transfer of a controlling ownership interest in Tenant, or the sale of at least fifty-one percent (51%) of the value of the assets of Tenant, shall be deemed a voluntary assignment hereunder.  The phrase “controlling percentage” means the ownership of, and the right to vote, stock or other interests possessing at least fifty-one percent (51%) of the total combined voting power of all classes of Tenant’s issued stock or other ownership interests.

Tenant immediately and irrevocably assigns to Landlord, as security for Tenant’s obligations under this Lease, all rent from any subletting of all or a part of the Premises as permitted by this Lease, and Landlord, as assignee and as attorney-in-fact for Tenant, or a receiver for Tenant appointed on Landlord’s application, may collect such rent and apply it toward Tenant’s obligations under this Lease; except that, until the occurrence of an act of default by Tenant, Tenant shall have the right to collect such rent.

Any assignment, subletting, or other transfer of Tenant’s interest hereunder, whether pursuant to written consent of Landlord or as permitted hereunder, shall not release or discharge Tenant from liability unless such release is expressly granted in writing by Landlord.

If Tenant requests Landlord to consent to a proposed assignment or subletting, Tenant shall pay to Landlord, whether or not consent is ultimately given, Landlord’s reasonable attorneys’ fees incurred in connection with each such request.

9.2

Involuntary Assignment.  No interest of Tenant in this Lease shall be assignable by operation of law (including, without limitation, the transfer of this Lease by testacy or intestacy).  Each of the following acts shall be considered an involuntary assignment:

(a)

If Tenant is or becomes bankrupt or insolvent, makes an assignment for the benefit of creditors, or institutes a proceeding under the Bankruptcy Act in which Tenant is the bankrupt; 

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or, if Tenant is a partnership or consists of more than one person or entity, if any partner of the partnership or other person or entity is or becomes bankrupt or insolvent, or makes an assignment for the benefit of creditors;

(b)

If a writ of attachment or execution is levied on this Lease;

(c)

If, in any proceeding or action to which Tenant is a party, a receiver is appointed with authority to take possession of the Premises.

An involuntary assignment shall constitute a default by Tenant and Landlord shall have the right to elect to terminate this Lease, in which case this Lease shall not be treated as an asset of Tenant.

SECTION 10 - DEFAULT

10.1

Tenant’s Default.  The occurrence of any of the following shall constitute a default by Tenant:

(a)

Failure to pay rent or any other sums payable by Tenant hereunder when due, if the failure continues for five (5) days after the date when such rent or other amount was due.

(b)

Abandonment and vacation of the Premises (failure to occupy and operate the Premises for ten (10) consecutive days shall be deemed an abandonment and vacation).

(c)

Failure to perform any other provision of this Lease if the failure to perform is not cured within fifteen (15) days after notice has been sent to Tenant and Guarantor.  If the default cannot reasonably be cured within fifteen (15) days, Tenant shall not be in default of this Lease if Tenant commences to cure the default within the fifteen (15)-day period and diligently and in good faith continues to cure the default.

(d)

Any representation or warranty by Tenant was materially false or inaccurate at the time of the execution of this Lease.

Notices given under Section 10.1(3) shall specify the alleged default and the applicable lease provisions, and shall demand that Tenant perform the provisions of this Lease within the applicable period of time, or quit the Premises.  No such notice shall be deemed a forfeiture or a termination of this Lease unless Landlord so elects in the notice.

10.2

Landlord’s Remedies.  Landlord shall have the following remedies if Tenant commits a default and, where applicable, fails to cure within the times set forth in Section 10.1 hereof.  These remedies are not exclusive; they are cumulative in addition to any remedies now or later allowed by law.

(a)

Tenant’s Right to Possession Not Terminated.  Landlord can continue this Lease in full force and effect, but not longer than the Term, and the Lease will continue in effect as long as 

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Landlord does not terminate Tenant’s right to possession, and Landlord shall have the right to collect rent when due.  During the period Tenant is in default, Landlord can enter the Premises and relet them, or any part of them, to third parties for Tenant’s account.  Tenant shall be liable immediately to Landlord for all costs Landlord incurs in reletting the Premises, including, without limitation, brokers’ commissions, expenses of remodeling the Premises required by the reletting, and like costs.  Reletting can be for a period shorter or longer than the remaining Term of this Lease.  Tenant shall pay to Landlord the rent due under this Lease on the dates the rent is due, less the rent Landlord receives from any reletting.  No act by Landlord allowed by this Section shall terminate this Lease unless Landlord notifies Tenant that Landlord elects to terminate this Lease.  After Tenant’s default and for as long as Landlord does not terminate Tenant’s right to possession of the Premises, if Tenant obtains Landlord’s consent Tenant shall have the right to assign or sublet its interest in this Lease, but Tenant shall not be released from liability.

If Landlord elects to relet the Premises as provided in this Section, rent that Landlord receives from reletting shall be applied to the payment of:

First, any indebtedness owed from Tenant to Landlord other than rent due from Tenant;

Second, all costs, including for repair, refurbishment, reconfiguration, restoration and maintenance, incurred by Landlord in reletting;

Third, rent and any other payments, costs or fees, including late fees due and unpaid under this Lease.

After deducting the payments referred to in this Section, any sum remaining from the rent Landlord receives from reletting shall be held by Landlord and applied in payment of future rent as rent becomes due under this Lease.  In no event shall Tenant be entitled to any excess rent received by Landlord.  If, on the date rent is due under this Lease, the rent received from the reletting is less than the rent due on that date, Tenant shall pay to Landlord, in addition to the remaining rent due, all costs, including for maintenance, Landlord incurred in reletting that remain after applying the rent received from the reletting as provided in this Section.

(b)

Termination of Tenant’s Right to Possession.  Landlord can terminate Tenant’s right to possession of the Premises at any time.  No act by Landlord other than giving notice to Tenant shall terminate this Lease.  Acts of maintenance, efforts to relet the Premises, or the appointment of a receiver on Landlord’s initiative to protect Landlord’s interest under this Lease shall not, by themselves, constitute a termination of Tenant’s right to possession or a termination of this Lease.  On termination of this Lease, Landlord has the right to recover from Tenant:

(i)

The worth, at the time of the award, of the unpaid rent owed hereunder at the time of termination of this Lease;

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(ii)

The worth, at the time of the award, of the amount by which the unpaid rent that would have been owed hereunder after the date of termination of this Lease until the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided;

(iii)

The worth, at the time of the award, of the amount by which the unpaid rent for the balance of the Term after the time of award exceeds the amount of the loss of rent that Tenant proves could have been reasonably avoided; and

(iv)

Any other amount, and court costs, necessary to compensate Landlord for all detriment proximately caused by Tenant’s default.

“The worth, at the time of the award,” as used in (i) and (ii) of this Section, is to be computed by allowing interest at the lesser of eighteen percent (18%) per annum or the maximum rate an individual is permitted by law to charge.  “The worth, at the time of the award,” as referred to in (iii) of this Section, is to be computed by discounting the amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of the award, plus one percent (1%).

(c)

Landlord’s Right to Cure Tenant’s Default.  Landlord, at any time after Tenant commits a default and has failed to perform within fifteen (15) days of notice of such default from Landlord, can cure the default at Tenant’s cost.  If Landlord at any time, by reason of Tenant’s default, pays any sum or does any act that requires the payment of any sum, the sum paid by  Landlord shall be due immediately from Tenant to Landlord at the time the sum is paid, and if paid at a later date shall bear interest at the lesser of eighteen percent (18%) per annum or the maximum rate an individual is permitted by law to charge from the date the sum is paid by Landlord until Landlord is reimbursed by Tenant.  The sum, together with interest on it, shall be additional rent.

10.3

Interest.  Rent and any other amounts payable hereunder by Tenant not paid within ten (10) days of when due shall bear interest from the date due until paid at the maximum rate permitted by law or at the rate of eighteen percent (18%) per annum, whichever is less.

10.4

Tenant’s Right To Cure Landlord’s Default.  Landlord shall be in default of this Lease if it fails or refuses to perform any provision of this Lease that it is obligated to perform if the failure to perform is not cured within fifteen (15) days after notice of the default has been given by Tenant to Landlord.  If the default cannot reasonably be cured within fifteen (15) days, Landlord shall not be in default of this Lease if Landlord commences to cure the default within the 15-day period and diligently and in good faith continues to cure the default.

SECTION 11 - EXTERIOR FIXTURES AND FURNISHINGS; SIGNS; ADVERTISING; 

USE OF ROOF

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11.1

Tenant’s Restricted Right to Exterior Fixtures and Furnishings; Signs.  Tenant shall not, without Landlord’s prior written consent, (i) make any changes to the exterior of the Premises, or (ii) install any exterior lighting, canopies or awnings, or any exterior decorations, or paintings, or (iii) install any drapes, blinds, shades or other coverings on exterior windows and doors (or change the type of window covering supplied with the Premises), or (iv) install any sign, window or door lettering, placards, decorations or advertisements of any type which can be viewed from the exterior of the Premises, or (v) place any object near exterior windows and doors which may appear unsightly from outside of the Premises.  Tenant shall not have the right to place, construct, or maintain any other sign, advertisement, awning, banner, or other exterior decoration without Landlord’s prior written consent.  All signs, awnings, canopies, decorations, lettering or other items approved by Landlord and installed by Tenant shall be kept in good repair and in proper operating condition at all times and any damage caused by or in connection with such items shall be repaired at Tenant’s expense.  Any items installed or maintained in violation of this provision may be promptly removed by Landlord at Tenant’s expense.

11.2

Compliance With Laws.  Any exterior fixtures and furnishings or signs that Tenant has the right to place, construct, and maintain shall comply with all laws, and Tenant shall obtain any approval required by such laws.  Landlord makes no representation with respect to Tenant’s ability to obtain such approval.

11.3

Right to Use Roof.  Use of the roof on the Building is reserved to Landlord and Landlord may install upon the roof such equipment, signs, and antenna and other objects as Landlord deems appropriate with Tenant’s written consent, such consent not to be unreasonably withheld, provided that any such objects which are visible to the general public are in keeping with the architectural theme of the Building and the Office Park.  

11.4

Removal of Exterior Fixtures and Furnishings; Signs.  At the termination of this Lease, Tenant shall, at Tenant’s sole cost and expense, remove all exterior fixtures and furnishings and signs installed or constructed by Tenant and shall repair and restore the Premises or the building or property of which the Premises is a part to their condition prior to installation or construction of such signs.

SECTION 12 - LANDLORD’S ENTRY ON PREMISES

12.1

Landlord’s Entry on Premises.  Landlord and its authorized representatives shall have the right to enter the Premises, upon at least four (4) hours’ notice to Tenant, for any of the following purposes:

(a)

To determine whether the Premises are in good condition and whether Tenant is complying with its obligations under this Lease;

(b)

To do any necessary maintenance and to make any restoration to the Premises that Landlord has the right or obligation (if any) to perform;

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(c)

To serve, post, or keep posted any notices required or allowed under the provisions of this Lease;

(d)

To post “for sale” signs at any time during the Term, to post “for rent” or “for lease” signs during the last six (6) months of the Term, or during any period while Tenant is in default, said signs to be posted in reasonable locations approved by Tenant, such approval not to be unreasonably withheld;

(e)

To show the Premises to prospective brokers, agents, buyers, tenants, or persons interested in a purchase or an exchange, at any time during the Term;

(f)

At Landlord’s expense, to shore the foundations, footings, and walls of the building and other improvements that are a part of the Premises and to erect scaffolding and protective barricades around and about the Premises, but not so as to prevent entry to the Premises, and to do any other act or thing necessary for the safety or preservation of the Premises if any excavation or other construction is undertaken or is about to be undertaken on any adjacent property or nearby street.  Landlord’s right under this provision shall not be construed to create any obligation for Landlord to maintain or repair the Premises, except as set forth in other provisions of this Lease.

Landlord shall not be liable in any manner for any inconvenience, disturbance, loss of business, nuisance, or other damage arising out of Landlord’s entry on the Premises as provided in this Section, except damage resulting from the wrongful acts or gross negligence of Landlord or its authorized representatives.

Tenant shall not be entitled to an abatement or reduction of rent if Landlord exercises any rights reserved in this Section.

Landlord shall conduct its activities on the Premises as allowed in this Section in a manner that will minimize inconvenience, annoyance, or disturbance to Tenant, and shall be timely in the performance of its obligations hereunder.

SECTION 13 - SECURITY DEPOSIT

13.1

Security Deposit.  Upon execution of this Lease, Tenant shall deposit with Landlord a sum equal to $75,000 as a security deposit (the “Lease Security Deposit”).  Landlord shall not be responsible for payment of any interest on said deposit and may commingle said deposit with the other funds of Landlord.  Provided and upon the express condition that Tenant has not in any way breached this Lease, $15,000 of the Lease Security Deposit shall be returned to Tenant on the second anniversary of the Commencement Date, and $10,000 of the Lease Security Deposit shall be returned to Tenant on each subsequent Commencement Date anniversary until the remaining Lease Security Deposit is $10,000.  If Tenant has complied with all the terms and conditions of this Lease, has promptly paid all rent and all other sums payable to Landlord hereunder, and the Premises and furnishings (if any) have been surrendered in good and clean condition (including the cleaning of carpeting as may be required by 

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Landlord), together with all keys to the Premises, Landlord shall refund to Tenant the balance of the Lease Security Deposit within thirty (30) days after Tenant’s surrender of the Premises and furnishings (if any).  In the event of any breach of this Lease by Tenant, Landlord shall have the right and option to retain all or any portion of the Lease Security Deposit as partial compensation of damages sustained by Landlord, without waiver of or prejudice to any other right or remedy to which Landlord may be entitled by law or this Lease.  Tenant shall not have the right to apply the Lease Security Deposit to the rent payable for any period of the term, including without limitation the last month of the term or any extension thereof.  In the event Landlord applies the Lease Security Deposit in payment of any obligation of Tenant hereunder during the term or any extension thereof, Tenant shall pay to Landlord the amount necessary to reestablish the Lease Security Deposit balance within seven (7) days of Landlord’s request for such payment.

SECTION 14 - PARKING

14.1

Parking.  Other than rented covered parking, handicapped designated parking, and customer-only designated parking, the Landlord shall not permit reserved parking, but Tenant and tenant’s employees and invitees shall have the right to use all parking provided on the Property consisting of at least 22 spaces.

14.2

Modifications.  Landlord reserves the right to change the arrangement, level and location of parking areas and the direction and flow of traffic to discourage unauthorized parking, so long as such changes do not materially affect Tenant’s access to the Premises and to adequate parking facilities.

SECTION 15 - REPRESENTATIONS AND WARRANTIES

15.1

Tenant’s Representations and Warranties.  As a material inducement to Landlord to execute this Lease and in partial consideration therefor, Tenant hereby makes the following representations and warranties, each of which is being relied upon by Landlord as a material inducement to enter into this Lease, and each of which is true and correct as of the date hereof:

(a)

All financial statements and other financial information provided to Landlord by Tenant are true and correct in all material respects, and fully and accurately present the financial condition of Tenant as of the date and time of such reports, and have been prepared in accordance with generally accepted accounting principles applied on a consistent basis.

(b)

The execution and delivery of this Lease and the performance by Tenant of its obligations hereunder require no further action or approval in order to constitute this Lease as a binding and enforceable obligation of Tenant.  Compliance with this Lease does not contravene any provision of law, nor of any agreement, government order or regulation, undertaking, or other restriction to which Tenant is a party or by which Tenant is bound.

(c)

This Lease has been duly executed by Tenant and constitutes a legal, valid, and binding obligation of Tenant enforceable in accordance with its terms.

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SECTION 16 - ESTOPPEL; FINANCING AND SUBORDINATION

16.1

Estoppel Certificate.  Tenant shall, within ten (10) days after Landlord’s request therefor, execute and deliver to Landlord an estoppel certificate in favor of Landlord and such other persons as Landlord shall request setting forth the following:  (a) ratification of this Lease; (b) the Commencement Date and termination date hereof; (c) that this Lease is in full force and effect and has not been assigned, modified, supplemented or amended (except as such writing as shall be stated); (d) that all conditions under this Lease to be performed by Landlord have been satisfied; (e) there are no defenses or offsets against the enforcement of this Lease by Landlord, or, in the alternative, those claimed by Tenant; (f) the amount of advance rent, if any (or none if such is the case), paid by Tenant; (g) the date to which rent has been paid; (h) the amount of the security deposit, if any; and (i) such other information as Landlord may reasonably request.  In the event that Tenant fails within ten (10) days after Landlord has delivered to Tenant an estoppel certificate pursuant to this Section to properly execute and deliver the same to Landlord, Tenant shall be deemed to have consented to such estoppel certificate as written; provided, however, that such non-consent shall not relieve Tenant from its responsibilities for default under this Lease by reason of its failure to return an estoppel certificate in accordance with this Section.  Mortgage lenders and/or purchasers shall be entitled to rely upon any estoppel certificate executed by Tenant or which Tenant is deemed to have consented.

16.2

Financing and Subordination.

(a)

Tenant agrees that from time to time it shall, if so requested by Landlord and if doing so will not materially and adversely affect Tenant’s economic interests under this Lease or its use of the Premises, join with the Landlord in amending the terms of this Lease so as to meet the reasonable needs or requirements of any lender who is considering furnishing, or who has furnished, any financing which is, or will be, secured by the Building and the land underneath such, or the Landlord’s Office Park.

(b)

Tenant’s rights under this Lease shall at all times be subordinated to the lien of any mortgage or deed of trust or lien or other security interest resulting from any method of financing or refinancing which encumbers or is intended to encumber the Building or the land underneath such, or Landlord’s Property, and to all advances subsequently made upon the strength of such security.  So long as Tenant is not in default under the terms of this Lease, however, this Lease shall remain in full force and effect for the full term hereof and shall not be terminated as a result of any foreclosure (or transfer in lieu thereof) of such mortgage or other security instrument to which Tenant has subordinated its rights pursuant to this subparagraph.

(c)

Tenant shall, upon Landlord’s request, in connection with Landlord’s efforts to sell the Building or secure financing at any time during the Term of this Lease, supply to Landlord all financial information required by Landlord or any potential buyer or any lender in relation to such sale or financing.

SECTION 17- LANDLORD’S LIEN

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17.1

Special Remedy Upon Abandonment, Vacation, or Default.  If Tenant abandons or vacates any substantial portion of the Premises or is in default of any provisions of this Lease, Landlord may enter upon the Premises, and take possession of all or any part of Tenant’s trade fixtures or personal property, store such property in a private or public place, and may sell all or any part of the fixtures or personal property at a public or private sale, in one or successive sales, with or without notice, to the highest bidder for cash.  The proceeds of the sale shall be applied by Landlord towards the costs of removal and storage, next towards reasonable costs and expenses of the sale, including attorney’s fees, and then toward the payment of all sums due by Tenant to Landlord under the terms of this Lease.

17.2

Security Agreement.  This Lease is intended as and constitutes a security agreement within the meaning of the Uniform Commercial Code of the State of Utah and Landlord, in addition to the rights prescribed in this Lease, shall have all of the rights, titles, liens and interests in and to Tenant’s property now or hereafter located upon the Premises which are hereby granted to Landlord as secured party, as that term is defined, under the Uniform Commercial Code, to secure the performance of and the payment to Landlord of the various amounts provided in this Lease.  Tenant will on request execute and deliver to Landlord all such financing statements and other documents as may be necessary to perfect Landlord’s security interest under this Lease, or Landlord may file this Lease or a photocopy or summary thereof as a financing statement.

SECTION 18 – LEASE GUARANTY

[THIS SECTION INTENTIONALLY LEFT BLANK]

SECTION 19 - MISCELLANEOUS

19.1

Notice.  All notices, requests, consents, and other communications required under this Lease shall be in writing and shall be sufficient for all purposes if personally delivered, or if mailed by certified or registered U.S. mail, return receipt requested, postage prepaid, or if sent by Federal Express or other nationally recognized air courier, expenses prepaid, and addressed as follows:

If to Landlord, to:

Mark H. Robinson

Rocky Mountain Development

12659 South 125 East, Suite B

Draper, Utah  84020

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With a copy to:

David J. Smith, Esq.

VAN COTT, BAGLEY, CORNWALL & McCARTHY

50 South Main Street, Suite 1600

Salt Lake City, Utah  84144

If to Tenant, to:

Whole Living, Inc.

Attention Chris Patterson

972 North 1430 West

Orem, Utah 85047

With copies to:

Ron Williams

972 North 1430 West

Orem, Utah 84057

Robert Reitz

972 North 1430 West

Orem, Utah 84057

Any party may change its address by notifying the other parties of the change of address.  Notice shall be deemed communicated upon receipt or within 48 hours from the time of mailing if mailed to the address provided in this Section, whichever shall first occur.

19.2

Waiver.  Any delay or omission in the exercise of any right or remedy of Landlord in relation to any default by Tenant shall not impair any such right or remedy and shall not be construed as a waiver of any kind or nature whatsoever.

The receipt or acceptance by Landlord of delinquent rent or other amounts owed hereunder shall not constitute a waiver of any default or any of Landlord’s rights or remedies.

No act or conduct of Landlord, including, without limitation, the acceptance of the keys to the Premises, shall constitute an acceptance of the surrender of the Premises by Tenant before the expiration of the Term.  Only a written notice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease.

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Landlord’s consent to or approval of any act by Tenant requiring Landlord’s consent or approval shall not be deemed to waive or render unnecessary Landlord’s consent to or approval of any subsequent act by Tenant.

Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of the Lease.

19.3

Sale or Transfer of Premises.  If Landlord sells or transfers all or any portion of the Premises, Landlord, on consummation of the sale or transfer, shall be released from any liability thereafter accruing under this Lease if Landlord’s successor has assumed in writing, for the benefit of Tenant, Landlord’s obligations under this Lease.  If any security deposit or prepaid rent has been paid by Tenant, Landlord can transfer the security deposit or prepaid rent to Landlord’s successor and on such transfer Landlord shall be discharged from any further liability in reference to the security deposit or prepaid rent.

19.4

Enforcement.  In the event of default under any provision in this Lease, the defaulting party agrees to pay the other party all costs, including reasonable attorney’s fees, incurred by the other party in enforcing its rights under this Lease whether or not court action is instituted, in addition to all other amounts due hereunder and damages caused by the default.

19.5

Surrender of Premises.  On expiration or termination of the Term, Tenant shall surrender to Landlord the Premises and all Tenant’s improvements and alterations in good condition, ordinary wear and tear excepted, Tenant shall remove all its personal property within the above stated time.  Tenant shall immediately perform all restoration made necessary by the removal of any alterations or Tenant’s personal property.

Landlord can elect to retain or dispose of in any manner any alterations or Tenant’s personal property that Tenant does not remove from the Premises on expiration or termination of the Term as allowed or required by this Lease by giving at least ten (10) days’ notice to Tenant.  Title to any such alterations or Tenant’s personal property that Landlord elects to retain or dispose of upon expiration of such 10-day period shall vest in Landlord.  Tenant waives all claims against Landlord for any damage to Tenant resulting from Landlord’s retention or disposition of any such alterations or Tenant’s personal property.  Tenant shall be liable to Landlord for Landlord’s costs for storing, removing, and disposing of any alterations or Tenant’s personal property.

If Tenant fails to surrender the Premises to Landlord on expiration or ten (10) days after termination of the Term as required by this Section, Tenant shall hold Landlord harmless from all damages resulting from Tenant’s failure to surrender the Premises, including, without limitation, claims made by a succeeding tenant resulting from Tenant’s failure to surrender the Premises.

19.6

Holding Over.  If Tenant, with Landlord’s consent, remains in possession of the Premises after expiration or termination of the Term, or after the date in any notice given by Landlord to Tenant terminating this Lease, such possession by Tenant shall be deemed to be a month-to-month tenancy terminable on thirty (30) days’ notice given at any time by either party.  All provisions of this 

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Lease, except those pertaining to term shall apply to the month-to-month tenancy, and the monthly rent during any such holdover tenancy shall be increased to one hundred twenty percent (120%) of the Base Rent and CAM Fee owed during the month preceding commencement of the holdover tenancy.

19.7

Time of Essence.  Time is of the essence of each provision of this Lease.

19.8

Consent of Parties.  Whenever consent or approval of either party is required, that party shall not unreasonably withhold such consent or approval.

19.9

Corporate Authority.  If either party is a corporation, that party shall deliver to the other party on execution of this Lease a certified copy of a resolution of its board of directors (or of its executive committee with appropriate resolutions from its board of directors empowering such executive committee) authorizing the execution of this Lease and naming the officers that are authorized to execute this Lease on behalf of the corporation.

19.10

Entire Agreement.  This Lease, including the exhibits attached hereto, constitutes the entire agreement between the parties hereto relative to the subject matter hereof.  Any prior negotiations, correspondence, or understandings relative to the subject matter hereof shall be deemed to be merged in this Lease and shall be of no further force or effect.  This Lease may not be amended or modified except in writing executed by both of the parties hereto.

19.11

Successors.  This Lease shall be binding on and inure to the benefit of the parties and their successors and assigns, except as provided in Section 9.1.

19.12

Rent Payable in U.S. Money.  Rent and all other sums payable under this Lease must be paid in lawful money of the United States of America.

19.13

Real Estate Brokers; Finders.  Each party shall hold harmless the other party from all damages resulting from any claims that may be asserted against the other party by any broker, finder, or other person, with whom the other party has or purportedly has dealt.

19.14

Exhibits - Incorporation in Lease.  All exhibits referred to are attached to this Lease and incorporated by reference.

19.15

Controlling Law.  This Lease shall be construed and interpreted in accordance with the laws of the State of Utah.

19.16

Use of Definitions.  The definitions contained in this Lease shall be used to interpret this Lease.

19.17

Definitions.  As used in this Lease, the following words and phrases shall have the following meanings:

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Alteration - any addition or change to, or modification of, the Premises made by Tenant including, without limitation, fixtures, but excluding trade fixtures as defined here, and Tenant’s improvements as defined here.

Authorized representative - any officer, agent, employee, or independent contractor retained or employed by either party, acting within authority given him by that party.

Damage - injury, deterioration, or loss to a person or property caused by another person’s acts or omissions.  Damage includes death.

Damages - a monetary compensation or indemnity that can be recovered in the courts by any person who has suffered damage to his person, property, or rights through another’s act or omission.

Destruction - any damage, as defined here, to or disfigurement of the Premises.

Encumbrance - any deed of trust, mortgage, or other written security device or agreement affecting the Premises, and the note or other obligation secured by it, that constitutes security for the payment of a debt or performance of an obligation.

Expiration - the coming to an end of the time specified in the Lease as its duration, including any extension of the Term resulting from the exercise of an option to extend.

Good condition - the good physical condition of the Premises and each portion of the Premises, including, without limitation, signs, windows, show windows, appurtenances, and Tenant’s personal property as defined here.  “In good condition” means first-class, neat, clean, and broom-clean, and is equivalent to similar phrases referring to physical adequacy in appearance and for use.

Hazardous substances - any substance or material defined or designated as hazardous or toxic waste, hazardous or toxic chemical, hazardous or toxic material, hazardous or toxic substance, or other similar term, by any federal, state, or local environmental statute, regulation, or ordinance presently in effect, or in effect at any time during the Term, and, as to substances and materials which are not specifically identified in any such statute, regulation, or ordinance by name, which are known to be toxic or hazardous under presently existing and generally accepted scientific knowledge.

Hold harmless - to defend and indemnify from all liability, losses, penalties, damages as defined here, costs, expenses (including, without limitation, attorneys’ fees), causes of action, claims, or judgments arising out of or related to any damage, as defined here, to any person or property.

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Law - any judicial decision, statute, constitution, ordinance, resolution, regulation, rule, administrative order, or other requirement of any municipal, county, state, federal, or other government agency or authority having jurisdiction over the parties or the Premises, or both, in effect either at the time of execution of the Lease or at any time during the Term, including, without limitation, any regulation or order of a quasi-official entity or body (e.g., board of fire examiners or public utilities).

Lender - the beneficiary, mortgagee, secured party, or other holder of an encumbrance, as defined here.

Lien - a charge imposed on the Premises by someone other than Landlord, by which the Premises are made security for the performance of an act.  Most of the liens referred to in this Lease are mechanics’ liens.

Maintenance - repairs, replacements, repainting, snow and ice removal, landscaping care and maintenance, janitorial services provided by Landlord, servicing of HVAC systems, and cleaning.

Person - one or more human beings, or legal entities or other artificial persons, including, without limitation, partnerships, corporations, trusts, estates, associations, and any combination of human beings and legal entities.

Provision - any term, agreement, covenant, condition, clause, qualification, restriction, reservation, or other stipulation in the Lease that defines or otherwise controls, establishes, or limits the performance required or permitted by either party.

Rent - monthly rent, prepaid rent, security deposit, real property taxes and assessments, insurance, and other similar charges payable by Tenant to Landlord.

Restoration - the reconstruction, rebuilding, rehabilitation, and repairs that are necessary to return destroyed portions of the Premises and other property to substantially the same physical condition as they were in immediately before the destruction.

Successor - assignee, transferee, personal represe­ntative, heir, or other person or entity succeeding lawfully, and pursuant to the provisions of this Lease, to the rights or obligations of either party.

Tenant’s improvement - any addition to or modification of the Premises made by Tenant before, at, or near the commencement of the Term, and any fixtures (not including Tenant’s trade fixtures, as defined here).

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24

Tenant’s personal property - Tenant’s equipment, furniture, merchandise, and moveable property placed in the Premises by Tenant, including Tenant’s trade fixtures, as defined here.

Tenant’s trade fixture - any property installed in or on the Premises by Tenant for purposes of trade, manufacture, ornament, or related use.

Term - the period of time during which Tenant has a right to occupy the Premises, including the Initial Term and any Extended Term.

Termination - the ending of the Term for any reason before expiration, as defined here.

19.18

Attorneys’ Fees and Costs.  If any legal action or other proceeding is brought for the enforcement of this Lease, or because of an alleged dispute, breach, default or misrepresentation in connection with any provision of this Lease, the successful or prevailing party shall be entitled to recover reasonable attorneys’ fees, and any other fees and costs incurred in such action or proceeding, in addition to any other relief to which such party may be entitled.

19.19

Force Majeure.  If either party to this Lease shall be delayed or prevented from the performance of any act required hereunder by reason of a strike, labor trouble, acts of nature or any other cause beyond the reasonable control of such party (financial inability excepted), and such party is otherwise without fault, then performance of such act (excluding payment of rent or any other charge or expense due and payable under this Lease) shall be excused for the period of delay.

19.20

Quiet Enjoyment.  Landlord covenants that so long as Tenant performs all of its obligations hereunder it shall peacefully and quietly have, hold and enjoy the leased Premises for the Term of this Lease.

19.21

Captions.  The captions of this Lease shall have no effect on its interpretation.

19.22

Singular and Plural.  When required by the context of this Lease, the singular shall include the plural.

19.23

Severability.  The unenforceability, invalidity, or illegality of any provision shall not render the other provisions unenforceable, invalid, or illegal.

Initials:   /s/ RW     

               /s/ MR     .

25

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first above written.

LANDLORD:

ROCKY MOUNTAIN DEVELOPMENT, LLC

By      /s/ Mike  H. Robinson                  

       Mike H. Robinson, Member

TENANT:

WHOLE LIVING, INC.

By   

/s/ Ron Williams            

Ron Williams 

    Its 

President                            .   

Initials:   /s/ RW     

               /s/ MR     .

26

Initials:   /s/ RW     

               /s/ MR     .

27PURCHASE AGREEMENT
                         6040 Lima Road
                       Fort Wayne, Indiana

This  AGREEMENT,  entered into effective as of  the  11  of  May,
2006.

l.    PARTIES.  Seller is AEI INCOME & GROWTH FUND  XXII  LIMITED
PARTNERSHIP,  which owns an undivided 100% interest  in  the  fee
simple  title to that certain real property legally described  in
the  attached Exhibit "A" (the "Property"). Buyer is  TUMBLEWEED,
INC.  Seller wishes to sell and Buyer wishes to buy the Property.

2.    PROPERTY.  The  Property  to  be  sold  to  Buyer  in  this
transaction  consists  of  an  undivided  100%  interest  in  the
Property.    Seller  owns  no  interest  in  any  personalty   in
connection with the Property.

3.   PURCHASE PRICE. The purchase price for this 100% interest in
the  Property is $1,200,000, payable as set forth in paragraph  4
below.

4.    TERMS. The purchase price for the Property will be paid  by
Buyer as follows:

(A).  When  this agreement is executed, Buyer will  pay  $100,000
cash to Seller (which shall be deposited into escrow according to
the  terms hereof) (the "First Payment"). The First Payment  will
be  credited against the purchase price when and if escrow closes
and the sale is completed.

(B). Buyer will deposit the balance of the purchase price in  the
following  manner,  $936,000 cash, and  a  Promissory  Note  from
Tumbleweed,  Inc.  (and NOT any assignee of Buyer's  interest  in
this  Agreement) in the amount of $164,000, payable according  to
the  terms  of the Promissory Note attached hereto as  Exhibit  B
(the  Second  Payment") into escrow in sufficient time  to  allow
escrow to close on the closing date.

5.   CLOSING DATE. Escrow shall close on or before May 11,  2006.

6.    DUE  DILIGENCE. Buyer will have 45 days from the  Effective
Date  of this Agreement (the "Review Period") to conduct  all  of
its  inspections  and due diligence and satisfy itself  regarding
the  Property and this transaction. Buyer agrees to indemnify and
hold  Seller  harmless for any loss or damage to the Property  or
persons  caused  by  Buyer  or its agents  arising  out  of  such
physical  inspections of the Property.  Within ten  days  of  the
Effective Date of this Agreement, Seller shall provide (except as
explained below, in Item A):

A.    One  copy  of a title insurance commitment for  an  Owner's
Title insurance policy (see paragraph 8 below), to be ordered  by
Buyer  at  Buyer's expense immediately upon both  parties  hereto
having  executed this agreement, with a copy of  the  same  being
delivered  to  Seller as soon as the third party title  insurance
company provides it to Buyer.

B.    A copy of a Certificate of Occupancy or other such document
certifying  completion  and  granting permission  to  permanently
occupy  the  improvements  on the Property  as  are  in  Seller's
possession.

C.    A  copy  of an "as built" survey of the Property  completed
concurrent   with  Seller's  acquisition  of  the  Property,   if
available in Seller's possession.

D.    A copy of any Phase I Environmental Report on the Property,
if available in Seller's possession.

Buyer  may  cancel  this agreement for ANY  REASON  in  its  sole
discretion  by  delivering a cancellation notice, return  receipt
requested,  to Seller and escrow holder before the expiration  of
the  Review  Period. Such notice shall be deemed  effective  only
upon receipt by Seller. If this Agreement is not cancelled as set
forth  above,  the  First Payment shall be non-refundable  unless
Seller shall default hereunder.

Notwithstanding anything in this Agreement to the  contrary,  the
Buyer's obligations under this Agreement shall be conditioned  on
the  full  and  complete performance by Tony  &  Stan,  LLC  (the
"Assignee")  under  that certain Purchase Agreement  dated  April
___,  2006  (the  "Other Purchase Agreement") by  and  among  the
Assignee as buyer and Buyer as seller, by which the Buyer  agrees
to  sell  the  Property  to  the Assignee  immediately  upon  the
consummation  of  the transactions set forth in  this  Agreement.
Seller  agrees  to consent to the assignment of Buyer's  purchase
rights hereunder to the Assignee simultaneously with closing, and
to  deed  the  property  directly to  such  Assignee  at  Buyer's
direction.    If  at  any time prior to closing,  Buyer  notifies
Seller  that the Assignee is unable to perform any of  Assignee's
obligations  under  the  Other  Purchase  Agreement,   (i)   this
Agreement shall be cancelled and of no further force and  effect,
(ii)  the Seller shall return immediately the First Payment,  and
(iii)  neither Buyer nor Seller shall have any further  liability
or obligation under this Agreement.

If  Buyer cancels this Agreement as permitted under this Section,
except for any escrow cancellation fees and any liabilities under
the  first  paragraph of section 6 of this Agreement (which  will
survive),  Seller  (after execution of such documents  reasonably
requested  by  Seller to evidence the termination  hereof)  shall
return  to Buyer its First Payment and Buyer will have absolutely
no  rights, claims or interest of any type in connection with the
Property  or this transaction, regardless of any alleged  conduct
by Seller or anyone else.

Unless this Agreement is canceled by Buyer pursuant to the  terms
hereof, if Buyer fails to make the Second Payment Seller shall be
entitled  to retain the First Payment and Buyer irrevocably  will
be deemed to be in default under this Agreement. Seller then may,
at  its  option,  retain  the  First  Payment  and  declare  this
Agreement  null and void, in which event Buyer will be deemed  to
have canceled this Agreement and relinquish all rights in and  to
the Property, or Seller may exercise its rights under Section  14
hereof.  If this Agreement is not canceled and the First  Payment
and  the  Second  Payment is made when required, all  of  Buyer's
conditions and contingencies will be deemed satisfied.

7.    ESCROW. Escrow shall be opened by Seller and the funds will
be  deposited in escrow upon acceptance of this Agreement by both
parties. The escrow holder will be a nationally-recognized escrow
company  selected  by Seller. A copy of this  Agreement  will  be
delivered  to  the  escrow  holder  and  will  serve  as   escrow
instructions   together   with  the  escrow   holder's   standard
instructions  and  any additional instructions  required  by  the
escrow  holder to clarify its rights and duties (and the  parties
agree  to  sign these additional instructions). If there  is  any
conflict  between  these other instructions and  this  Agreement,
this Agreement will control.

8.    TITLE.  Closing will be conditioned on the agreement  of  a
national  title  company  to issue an  Owner's  policy  of  title
insurance, dated as of the close of escrow, in an amount equal to
the  purchase price, insuring that Buyer will own insurable title
to  the  Property  subject only to: the title company's  standard
exceptions;  current real property taxes and assessments;  survey
exceptions; the rights of parties in possession pursuant  to  the
lease  defined  in  paragraph 11 below;  all  matters  of  public
record;  and  other  items disclosed to Buyer during  the  Review
Period.

Buyer  shall be allowed five (5) business days after  receipt  of
said  commitment for examination and the making of any objections
to  marketability thereto, said objections to be made in  writing
or  deemed waived. If any objections are so made, Seller shall be
allowed  sixty  (60) days to cure such objections and  make  such
title  marketable or, in the alternative, to obtain a  commitment
for  insurable title insuring over Buyer's objections. If  Seller
shall  decide to make no efforts to make title marketable, or  is
unable to make title marketable or obtain insurable title, (after
execution  by  Buyer  of such documents reasonably  requested  by
Seller  to evidence the termination hereof) Buyer's First Payment
will be returned and this Agreement shall be null and void and of
no  further force and effect. Seller has no obligation  to  spend
any  funds  or make any effort to satisfy Buyer's objections,  if
any.

Pending   satisfaction  of  Buyer's  objections,   the   payments
hereunder  required shall be postponed, but upon satisfaction  of
Buyer's objections and within ten (10) days after written  notice
to  the  Buyer of satisfaction of Buyer's objections, the parties
shall perform this Agreement according to its terms.

9.    CLOSING  COSTS.  If Buyer shall decide  to  purchase  title
insurance,  then Buyer will pay the cost of obtaining a  Standard
Owners  Title Insurance Policy in the full amount of the purchase
price.  Buyer  will pay all recording fees, transfer  taxes,  and
clerk's  fees imposed upon the recording of the deed, the  escrow
fees,  the cost of the title commitment and the cost of an update
to the Survey in Seller's possession (if an update is required by
Buyer.)   Seller will pay 3% of the sale price at  closing  as  a
brokerage  commission to Houston Jones. Each party will  pay  its
own  attorney's  fees  and  costs  to  document  and  close  this
transaction.

10.  REAL ESTATE TAXES, SPECIAL ASSESSMENTS AND PRORATIONS.

(A).       Because  the Property is subject to a  net  lease  (as
further set forth in paragraph 11(A)(1)), the parties acknowledge
that  there  shall  be no need for a real estate  tax  proration.
Unpaid  real  estate taxes and unpaid levied and pending  special
assessments  existing  on  the  date  of  Closing  shall  be  the
responsibility  of  Buyer, pro-rated, however,  to  the  date  of
closing  for  the  period prior to closing, which  shall  be  the
responsibility of Lessee and not Seller.  Buyer or Assignee shall
likewise pay all taxes due and payable in the year after  Closing
and  any  unpaid  installments  of  special  assessments  payable
therewith  and  thereafter,  if such unpaid  levied  and  pending
special  assessments and real estate taxes are not  paid  by  any
Lessee of the Property

(B). All income and all operating expenses from the Property,  if
any,  shall be prorated between the parties and adjusted by  them
as of the date of Closing. Seller shall be entitled to all income
earned  prior to the date of Closing. Buyer or Assignee shall  be
entitled to all income earned on or after the date of closing and
shall  be  responsible for all operating expenses of the Property
incurred on and after the date of closing.

11.  SELLER'S REPRESENTATION AND AGREEMENTS.

(A). Seller represents and warrants as of this date that:

1.    Except for the Lease Agreement in existence between  Seller
(as Lessor) and Buyer ("Lessee"), dated November 25, 1998, Seller
is  not aware of any leases of the Property. If the Buyer desires
to terminate the Lease, Buyer may do so only after closing of the
transaction contemplated herein; in the event Buyer shall  assign
its interest herein as set forth below in paragraph 11(A)2, Buyer
shall  make  separate  arrangements with  the  Assignee  to  such
effect.

2.    Seller  agrees  to  consent to the  assignment  of  Buyer's
purchase  rights  hereunder to the Assignee  simultaneously  with
closing,  and to deed the property directly to such  Assignee  at
Buyer's direction.

3.    It  is  not aware of any pending litigation or condemnation
proceedings  against  the Property or Seller's  interest  in  the
Property.

4.    Seller  is  not aware of any contracts Seller has  executed
that would be binding on Seller after the closing date.

(B).  Provided that Buyer performs its obligations  as  required,
Seller agrees that it will not enter into any new contracts  that
would  materially  affect the Property and be binding  on  Seller
after the Closing Date without Buyer's prior consent, which  will
not be unreasonably withheld.

12.  DISCLOSURES.

(A).  Seller  has  not  received  any  notice  of  any  material,
physical,  or  mechanical  defects  of  the  Property,  including
without limitation, the plumbing, heating, air conditioning,  and
ventilating, electrical system. To the best of Seller's knowledge
without  inquiry, all such items are in good operating  condition
and  repair  and in compliance with all applicable  governmental,
zoning,   and   land  use  laws,  ordinances,   regulations   and
requirements. If Seller shall receive any notice to the  contrary
prior to Closing, Seller will inform Buyer prior to Closing.

(B).  Seller  has  not  received any  notice  that  the  use  and
operation  of  the  Property  is  not  in  full  compliance  with
applicable  building codes, safety, fire, zoning,  and  land  use
laws,  and  other  applicable  local,  state  and  federal  laws,
ordinances, regulations and requirements. If Seller shall receive
any  such notice prior to Closing, Seller will inform Buyer prior
to Closing.

(C).  Seller knows of no facts, nor has Seller failed to disclose
to Buyer any fact known to Seller, which would prevent the Lessee
from  using and operating the Property after the Closing  in  the
manner in which the Property has been used and operated prior  to
the date of this Agreement. If Seller shall receive any notice to
the contrary prior to Closing, Seller will inform Buyer prior  to
Closing.

(D).  Seller has not received any notice that the Property is  in
violation  of  any  federal, state or local  law,  ordinance,  or
regulations  relating to industrial hygiene or the  environmental
conditions on, under, or about the Property, including,  but  not
limited  to,  soil, and groundwater conditions. To  the  best  of
Seller's  knowledge, there is no proceeding  or  inquiry  by  any
governmental authority with respect to the presence of  Hazardous
Materials on the Property or the migration of Hazardous Materials
from or to other property. If Seller shall receive any notice  to
the contrary prior to Closing, Seller will inform Buyer prior  to
Closing.

(E). BUYER AGREES THAT IT SHALL BE PURCHASING THE PROPERTY IN ITS
PRESENT  CONDITION,  "AS  IS,    WHERE IS",  AND  SELLER  HAS  NO
OBLIGATIONS TO CONSTRUCT OR REPAIR ANY IMPROVEMENTS THEREON OR TO
PERFORM ANY OTHER ACT REGARDING THE PROPERTY, EXCEPT AS EXPRESSLY
PROVIDED HEREIN.

(F).  BUYER  ACKNOWLEDGES THAT, HAVING BEEN GIVEN THE OPPORTUNITY
TO INSPECT THE PROPERTY AND SUCH FINANCIAL INFORMATION CONCERNING
THE  LESSEE  AND  ANY GUARANTORS OF THE LEASE  AS  BUYER  OR  ITS
ADVISORS  SHALL  REQUEST  AND AS MAY BE IN  SELLER'S  POSSESSION,
BUYER  IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY
AND  NOT ON ANY REPRESENTATIONS OR INFORMATION PROVIDED BY SELLER
OR  TO  BE PROVIDED BY SELLER, EXCEPT AS SET FORTH HEREIN.  BUYER
FURTHER  ACKNOWLEDGES THAT THE INFORMATION  PROVIDED,  OR  TO  BE
PROVIDED,  BY  SELLER WITH RESPECT TO THE PROPERTY, THE  PROPERTY
AND  TO THE LESSEE AND ANY GUARANTORS OF LEASE, WAS OBTAINED FROM
A  VARIETY  OF  SOURCES AND SELLER HAS NOT (A)  MADE  INDEPENDENT
INVESTIGATION OR VERIFICATION OF SUCH INFORMATION, AND (B)  MAKES
NO  REPRESENTATIONS  AS TO THE ACCURACY OR COMPLETENESS  OF  SUCH
INFORMATION, EXCEPT AS HEREIN SET FORTH. THE SALE OF THE PROPERTY
AS PROVIDED FOR HEREIN IS MADE ON AN "AS IS - WHERE IS" BASIS AND
BUYER  EXPRESSLY  ACKNOWLEDGES  THAT,  IN  CONSIDERATION  OF  THE
AGREEMENTS OF SELLER HEREIN, EXCEPT AS OTHERWISE SPECIFIED HEREIN
IN  PARAGRAPH 11(A) AND (B) ABOVE AND THIS PARAGRAPH  12,  SELLER
MAKES  NO  WARRANTY  OR REPRESENTATION, EXPRESS  OR  IMPLIED,  OR
ARISING  BY OPERATION OF LAW, INCLUDING, BUT NOT LIMITED TO,  ANY
WARRANTY  OF  CONDITION,  HABITABILITY,  SUITABILITY  FOR  LEASE,
SUITABILITY FOR COMMERCIAL PURPOSES, MERCHANTABILITY, OR  FITNESS
FOR  A  PARTICULAR  PURPOSE, IN RESPECT OF THE  PROPERTY.  SELLER
MAKES NO REPRESENTATIONS OF ANY SORT THAT OWNERSHIP OF THE ENTIRE
PROPERTY WILL RESULT IN A PROFIT TO ANY BUYER.

(G)   BUYER  ACKNOWLEDGES THAT SELLER CANNOT, AND DOES NOT,  MAKE
ANY REPRESENTATION AS TO (A) THE SUCCESS, OR LACK THEREOF, OF THE
ENTIRE  PROPERTY, (B) THE LESSEE AND ANY GUARANTORS OF THE  LEASE
OR  THEIR ABILITY TO FULFILL THEIR LEASE OBLIGATIONS, OR (C)  THE
APPROPRIATENESS OF PURCHASING THE ENTIRE PROPERTY FOR THE BUYER'S
INDIVIDUAL  TAX  OR  FINANCIAL  SITUATION  OR  TAX  OR  FINANCIAL
OBJECTIVES.  BUYER ACKNOWLEDGES THAT HE OR SHE IS RELYING  SOLELY
UPON  HIS OR HER OWN EXAMINATION OF THE ENTIRE PROPERTY  AND  ALL
FACTS  SURROUNDING THE PURCHASE OF THE ENTIRE PROPERTY  INCLUDING
THE MERITS AND RISKS INVOLVED THEREIN.

The provisions (D) - (G) above shall survive Closing.

13.  CLOSING.

(A). Before the closing date, Seller will deposit into escrow  an
executed  special warranty deed warranting title  against  lawful
claims  by, through, or under a conveyance from Seller,  but  not
further  or otherwise, conveying insurable title of the  Property
to  Buyer,  or the Assignee as Buyer may direct, subject  to  the
exceptions contained in paragraph 8 above.

(B).  On  or  before  the closing date, Buyer will  deposit  into
escrow  the  balance  of the Purchase Price when  required  under
Section  4,  including  the  executed  Promissory  Note  and  any
additional funds required of Buyer (pursuant to this agreement or
any  other  agreement executed by Buyer) to  close  escrow.  Both
parties  will  deliver to the escrow holder any  other  documents
reasonably required by the escrow holder to close escrow.

(C). On the closing date, if escrow is ready to close, the escrow
holder  will:  record  the deed in the official  records  of  the
county where the Property is located; cause the title company  to
commit  to issue the title policy; immediately deliver to  Seller
the  portion  of  the  purchase price deposited  into  escrow  by
cashier's check or wire transfer (less debits and prorations,  if
any)  and  the  executed  Promissory Note  of  Tumbleweed,  Inc.;
deliver  to  Seller and Buyer a signed counterpart of the  escrow
holder's certified closing statement; and, take all other actions
necessary to close escrow.

14.   DEFAULTS. If Buyer defaults, Buyer will forfeit all  rights
and  claims  and  Seller will be relieved of all obligations  and
will  be  entitled to retain all monies heretofore  paid  by  the
Buyer. In addition, Seller shall retain all remedies available to
Seller at law or in equity.  Provided, however, that in no  event
shall Buyer be liable for any actual, punitive, consequential  or
speculative  damages  arising  out  of  any  default   by   Buyer
hereunder.

If  Seller shall default, Seller shall immediately pay the  First
Payment  to Buyer, and Buyer shall retain all remedies  available
to  Buyer  at law or in equity.  Provided, however,  that  in  no
event   shall   Seller  be  liable  for  any  actual,   punitive,
consequential or speculative damages arising out of  any  default
by Seller hereunder.

15.  BUYER'S REPRESENTATIONS AND WARRANTIES.

(A). Buyer represents and warrants to Seller as follows:

(1).  In  addition  to  the  acts and deeds  recited  herein  and
contemplated to be performed, executed, and delivered  by  Buyer,
Buyer  shall  perform,  execute  and  deliver  or  cause  to   be
performed,  executed, and delivered at the Closing or  after  the
Closing, any and all further acts, deeds and assurances as Seller
or  the  Title Company may require and be reasonable in order  to
consummate the transactions contemplated herein.

(2).  Buyer  has all requisite power and authority to  consummate
the  transaction contemplated by this Agreement and has by proper
proceedings  duly authorized the execution and delivery  of  this
Agreement  and  the consummation of the transaction  contemplated
hereby.

(3). To Buyer's knowledge, neither the execution and delivery  of
this   Agreement   nor  the  consummation  of   the   transaction
contemplated hereby will violate or be in conflict with  (a)  any
applicable provisions of law, (b) any order of any court or other
agency  of  government having jurisdiction  hereof,  or  (c)  any
agreement  or instrument to which Buyer is a party  or  by  which
Buyer is bound.

16.  DAMAGES, DESTRUCTION AND EMINENT DOMAIN.

(A).  If,  prior to closing, the Property or any part thereof  be
destroyed or further damaged by fire, the elements, or any cause,
due  to events occurring subsequent to the date of this Agreement
to  the  extent that the cost of repair exceeds $10,000.00,  this
Agreement   shall  become  null  and  void,  at  Buyer's   option
exercised, if at all, by written notice to Seller within ten (10)
days  after Buyer has received written notice from Seller of said
destruction or damage, and Seller shall pay the First Payment  to
Buyer.  Seller, however, shall have the right to adjust or settle
any  insured  loss  until  (i)  all contingencies  set  forth  in
Paragraph 6 hereof have been satisfied, or waived; and  (ii)  any
ten-day  period provided for above in this Subparagraph  16a  for
Buyer  to elect to terminate this Agreement has expired or  Buyer
has,  by  written  notice  to Seller,  waived  Buyer's  right  to
terminate  this  Agreement. If Buyer elects  to  proceed  and  to
consummate the purchase despite said damage or destruction, there
shall be no reduction in or abatement of the purchase price,  and
Seller  shall  assign  to Buyer the Seller's  right,  title,  and
interest  in and to all insurance proceeds (pro-rata in  relation
to the Property) resulting from said damage or destruction to the
extent  that the same are payable with respect to damage  to  the
Property, subject to rights of any Lessee of the Property.

If  the  cost of repair is less than $10,000.00, Buyer  shall  be
obligated to otherwise perform hereinunder with no adjustment  to
the  Purchase  Price, reduction or abatement,  and  Seller  shall
assign Seller's right, title and interest in and to all insurance
proceeds pro-rata in relation to the Property, subject to  rights
of any Lessee of the Property.

(B). If, prior to closing, the Property, or any part thereof,  is
taken  by  eminent domain, this Agreement shall become  null  and
void  at Buyer's option. If Buyer elects to proceed to consummate
the purchase despite said taking, there shall be no reduction in,
or  abatement of, the purchase price, and Seller shall assign  to
Buyer the Seller's right, title, and interest in and to any award
made,  or to be made, in the condemnation proceeding pro-rata  in
relation to the Property, subject to rights of any Lessee of  the
Property.

In  the  event  that  this Agreement is terminated  by  Buyer  as
provided  above  in  Subparagraph 16A or 16B, the  First  Payment
shall  be immediately returned to Buyer (after execution by Buyer
of  such documents reasonably requested by Seller to evidence the
termination hereof.)

17.  1031 EXCHANGE. - Not Applicable

18.  CANCELLATION

If  any  party  elects to cancel this Agreement  because  of  any
breach  by another party or because escrow fails to close by  the
agreed date, the party electing to cancel shall deliver to escrow
agent a notice containing the address of the party in breach  and
stating that this Agreement shall be cancelled unless the  breach
is  cured within 13 days following the delivery of the notice  to
the escrow agent. Within three days after receipt of such notice,
the escrow agent shall send it by United States Mail to the party
in  breach at the address contained in the Notice and no  further
notice  shall be required. If the breach is not cured within  the
13 days following the delivery of the notice to the escrow agent,
this Agreement shall be cancelled.

19.  MISCELLANEOUS.

(A).  This  Agreement  may be amended only by  written  agreement
signed  by  both  Seller and Buyer and all  waivers  must  be  in
writing  and signed by the waiving party. Time is of the essence.
This  Agreement  will not be construed for  or  against  a  party
whether or not that party has drafted this Agreement. If there is
any  action  or proceeding between the parties relating  to  this
Agreement  the  prevailing  party will  be  entitled  to  recover
attorney's  fees  and  costs.  This is  an  integrated  agreement
containing  all agreements of the parties about the Property  and
the   other  matters  described  and  it  supersedes  any   other
agreements or understandings. Exhibits attached to this Agreement
are incorporated into this Agreement.

(B). If this escrow has not closed by the Closing Date through no
fault  of Seller, Seller may, at its election, extend the closing
date  or  exercise any remedy available to it by  law,  including
terminating this Agreement.

(C).  Funds  to be deposited or paid by Buyer must  be  good  and
clear  funds  in  the  form  of cash, cashier's  checks  or  wire
transfers.

(D).  All notices from either of the parties hereto to the  other
shall  be  in writing and shall be considered to have  been  duly
given  or  served if sent by first class certified  mail,  return
receipt requested, postage prepaid, or by a nationally recognized
courier  service guaranteeing overnight delivery to the party  at
his  or its address set forth below, or to such other address  as
such party may hereafter designate by written notice to the other
party.

If to Seller:

               AEI Income & Growth Fund XXII Limited Partnership
               Attention:  Robert Johnson
               30 East Seventh Street, #1300
               St. Paul, MN 55101

If to Buyer:

               Attention: Glennon F. Mattingly
               Tumbleweed, Inc.
               2301 River Road, Suite 200
               Louisville, KY   40206

When  accepted, this offer will be a binding agreement for  valid
and  sufficient consideration which will bind and benefit  Buyer,
Seller  and  their  respective successors and assigns.  Buyer  is
submitting  this  offer  by signing a  copy  of  this  offer  and
delivering it to Seller. Seller has five (5) business  days  from
receipt within which to accept this offer.

This   Agreement  shall  be  governed  by,  and  interpreted   in
accordance with, the laws of the State of Indiana.

IN  WITNESS  WHEREOF,  the Seller and Buyer  have  executed  this
Agreement effective as of the day and year above first written.

BUYER:

TUMBLEWEED, INC.

By: /s/ Glennon F Mattingly
        Glennon F. Mattingly, Vice President and
          Chief Financial Officer

SELLER:

AEI INCOME & GROWTH FUND XXII LIMITED PARTNERSHIP, a Minnesota
limited partnership
By:  AEI Fund Management XXI, Inc., a Minnesota corporation

By: /s/ Robert P Johnson
        Robert P. Johnson, its President

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