Document:

STANDARD
        INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE - NET 

      AMERICAN
        INDUSTRIAL REAL ESTATE ASSOCIATION 

    

     

    
      1
        Basic
        Provisions (“Basic Provisions”). 

      

      
        	
                         
                  1.1 Parties:
                  This
                  Lease (“Lease”),
                  dated for reference purposes only, 

              	
                June
                  23 ,
                  2006 

              	
                ,
                  is
                  made 

              
	
                by
                  and between 

              	LaPour
                Deer Valley, LLC, an Arizona Limited Liability Company 
	
                (“Lessor”)
                  

              
	
                and
                  

              	
                Crystal
                  Tech Web Hosting, Inc. a New York Corporation 

              
	
                 

              	
                (“Lessee”),
                  (collectively the “Parties”,
                  or
                  individually a “Party”).
                  

              

      

       

      
        	
                         
                  1.2(a)  Premises:
                  That
                  certain portion of the Project (as defined below), including all
                  improvements therein or to be provided by Lessor under the
                  
                                       
                  terms of 

              
	
                this
                  Lease commonly known by the street address of 

              	
                1125
                  W. Pinnacle Peak Rd, Bldg 1, Suites 100-103 and a portion of 104,
                  Located
                  in the City of Phoenix 

              
	
                County
                  of 

              	
                Maricopa
                  

              	
                State
                  of 

              	
                Arizona
                  

              	
                with
                  zip code 

              	
                85027
                  

              	
                as
                  outlined on Exhibit 

              	
                A
                  

              
	
                Attached
                  hereto (“Premises”)
                  and
                  generally described as : 

              	
                 

              
	
                Approximately
                  15,000 sf of Rentable Area consisting of 100% project standard
                  office
                  located within the Project commonly known as Pinnacle Park Business
                  Center, Phase I. The project totaling
                  123,752 sf. 

              
	 

      

    

     

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

      
        

          
            	
                             
                      1.2(b) Parking:
                      

                  	
                    Seventy
                      -five (75) 

                  	
                    Unreserved
                      vehicle parking spaces (“Unreserved
                      Parking Spaces”);
                      and 

                  
	
                    Zero
                      (0) 

                  	
                    Reserved
                      vehicle parking spaces (“Reserved Parking Spaces”). (See also Paragraph
                      2.6). 

                  

          

        

      

      
        

          
            	
                             
                      1.3 Term:
                       

                  	
                    Five
                      (5) 

                  	
                    Years
                      and 

                  	
                    One
                      (1) 

                  	
                    months
                      (Original
                      Term”)
                      commencing 

                  	
                    January
                      1, 2007 

                  
	
                    (“Commencement
                      Date”)
                      and
                      ending 

                  	
                    January
                      31, 2012 

                  	
                    (“Expiration
                      Date”).
                      (See also Paragraph 3)

                  

          

        

      

    

     

    
      
        	
                          1.4
                  Early
                  Possession: 

              	
                December
                  1, 2006 (See Also Addendum One) 

              	
                (“Early
                  Possession Date”) 

              
	
                
                  (See
                    also Paragraphs 3.2 and 3.3)

                

              

      

    

     

    
      
        
          	
                           
                    1.5 Base
                    Rent: 

                	
                  $19,650.00
                    

                	
                  Per
                    month (“Base
                    Rent”),
                    payable on the 

                	
                  First(1st)

                	
                  day
                    of 

                
	
                  each
                    month commencing 

                	
                  February
                    1, 2007 

                	
                  (See
                    also Paragraph 4) 

                
	
                  If
                    this box is checked, there are provisions in this Lease for the
                    Base Rent
                    to be adjusted. 

                

        

      

    

     

    
      
        	
                         
                  1.6 Lessee’s
                  Share of Common Area Operating Expenses: 

              	
                Twelve
                  and 12/100 

              	
                Percent
                  

              	
                (12.12%)
                  

              	
                (“Lessee’s
                  Share”). 

              

      

    

     

    
      
        	
                         
                  1.7 Base
                  Rent and Other Monies Paid Upon Execution:  

              

      

    

     

    
      	
              (a)
                Base
                Rent: 

            	
              $19,650
                

            	
               
                for the period 

            	
              2/1/07
                - 2/28/07 

            

    

     

    
      
        	
                                
                   (b) Common
                  Area Operating Expenses: 

              	
                $2,550
                  

              	
                for
                  the period 

              	
                12/1/06-12/31/06
                  

              

      

    

     

    
      	
                               
                (c) Security
                Deposit: 

            	
              $22,200
                

            	
                
                (“Security Deposit”).
                (See also Paragraph 5) 

            	
              Due
                upon execution 

            

    

     

    
      
        	
                                 
                  (d) Other:
                  

              	
                $43,264.13
                  

              	
                for
                  

              	
                Estimated
                  Tenant Improvement Overage ( See Addendum One and Exhibit “C”)
                  

              

      

    

     

    
      
        
          	
                                   
                    (e) Total
                    Due Upon Execution of this Lease: 

                	
                  $87,664.13 

                

        

      
 

    
      
        
          
            	
                              1.8
                      Agreed
                      Use: 

                  	
                    Administration,
                      sales and technical support related to internet website hosting
                      and other
                      lawfully related uses. 

                  
	
                    (See
                      also Paragraph 6) 

                  	 

          

        

      

    

     

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

              

      

    

     

    
      
        	
                         
                  1.10 Real
                  Estate Brokers: (See
                  also Paragraph 15) 

              

      

    

     

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

    
       

    

    
      
        	 x	
                Cushman
                  & Wakefield (Steve Sayre & Lindsay Erickson) 

              	 	
                represents
                  Lessor exclusively (“Lessor’s
                  Broker”);
                  

              
	 x	
                Cushman
                  & Wakefield (Mike Sayre) 

              	 	
                represents
                  Lessee exclusively (“Lessee’s
                  Broker”);
                  or 

              
	 o	
                 

              	 	
                represents
                  both Lessor and Lessee (“Dual
                  Agency”).
                  

              

      

    

     

    
       
(b)
        Payment
        to Brokers: Upon
        execution and delivery of this Lease by both Parties, Lessor shall pay to
        the
        Brokers the Brokerage
        fee agreed to in a separate written agreement

    

    
      
        

          
            	
                          
                      1.11 Guarantor.
                      The
                      obligations of the Lessee under this Lease are to be guaranteed
                      by
                      

                  	
                    None
                      

                  
	
                    (“Guarantor”).
                      (See also paragraph 37)

                  

          

        

      

    

     

    
      
        	
                       
                  1.12 Attachments:
                  Attached
                  hereto are the following, all of which constitute a part of this
                  Lease:
                  

              	
                 

              

      
 

    
      
        	 x	
                an
                  Addendum consisting of Paragraphs 50 through
                  61;

              
	 x	
                a
                  site plan depicting the Project; 

              
	 x	
                a
                  floor plan depicting the Premises:

              
	 x	
                Building
                  Standards and Specifications;  

              
	 x	
                a
                  current set of the Rules and Regulations for the
                  Project;

              
	 x	
                signage
                  criteria for the project;

              
	 o	
                Guaranty
                  of Lease;

              
	 o	
                other
                  (specify); 

              

      

      

        2.
          Premises.
          

         

        2.1
          Letting.
          Lessor
          hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises,
          for
          the term, at the rental, and upon all of the terms, covenants and conditions
          set
          forth in this Lease. Unless otherwise provided herein, any statement of
          size set
          forth in this Lease, or that may have been used in calculating Rent, is
          an
          approximation which the Parties agree is reasonable and any payments based
          thereon are not subject to revision whether or not the actual size is more
          or
          less. 

         

        2.2
          Condition.
          Lessor
          shall deliver that portion of the Premises contained within the Building
          ('Unit")
          to
          Lessee
          broom clean and free of debris on the Commencement Date or the Early Possession
          Date, whichever first occurs ("Start
          Date"),
          and, so
          long as the required service contracts described in Paragraph 7.1(b) below
          are
          obtained by Lessee and in effect within thirty days following the Start
          Date,
          warrants that the existing electrical, plumbing, fire sprinkler, lighting,
          heating, ventilating and air conditioning systems ("HVAC"),
          loading
          doors, if any, and all other such elements in the Unit, other than those
          constructed by Lessee, shall be in good operating condition on said date
          and
          that the structural elements of the roof, bearing walls and foundation
          of the
          Unit shall be free of material defects. If a non-compliance with such warranty
          exists as of the Start Date, or if one of such systems or elements should
          malfunction or fail within the appropriate warranty period, Lessor shall,
          as
          Lessor's sole obligation with respect to such matter, except as otherwise
          provided in this Lease, promptly after receipt of written notice from Lessee
          setting forth with specificity the nature and extent of such non-compliance,
          malfunction or failure, rectify same at Lessor's expense. The warranty
          periods
          shall be as follows: (i) 1
          year
          from the date of installation as to the HVAC systems, and (ii) 30 days
          as to the
          remaining systems and other elements of the Unit. If Lessee does not give
          Lessor
          the required notice within the appropriate warranty period, correction
          of any
          such non-compliance, malfunction or failure shall be the obligation of
          Lessee at
          Lessee's sole cost and expense (except for the repairs to the fire sprinkler
          systems, roof, foundations, and/or bearing walls - see Paragraph 7).

 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    2.3
      Compliance.
      Lessor
      warrants that the improvements on the Premises and the Common Areas comply
      with
      the building codes that were in effect at the time that each such improvement,
      or portion thereof, was constructed, and also with all applicable laws,
      covenants or restrictions of record, regulations, and ordinances in effect
      on
      the Start Date ("Applicable
      Requirements").
      Said
      warranty does not apply to the use to which Lessee will put the Premises or
      to
      any Alterations or Utility Installations (as defined in Paragraph 7.3(a)) made
      or to be made by Lessee. NOTE:
      Lessee is responsible for determining whether or not the Applicable
      Requirements, and especially the zoning, are appropriate for Lessee's intended
      use, and acknowledges that past uses of the Premises may no longer be
      allowed.
      If the
      Premises do not comply with said warranty, Lessor shall, except as otherwise
      provided, promptly after receipt of written notice from Lessee setting forth
      with specificity the nature and extent of such non-compliance, rectify the
      same
      at Lessor's expense. If Lessee does not give Lessor written notice of a
      non-compliance with this warranty within 6 months following the Start Date,
      correction of that non-compliance shall be the obligation of Lessee at Lessee's
      sole cost and expense. If the Applicable Requirements are hereafter changed
      so
      as to require during the term of this Lease the construction of an addition
      to
      or an alteration of the Unit, Premises and/or Building, the remediation of
      any
      Hazardous Substance, or the reinforcement or other physical modification of
      the
      Unit, Premises and/or Building ("Capital
      Expenditure"),
      Lessor
      and Lessee shall allocate the cost of such work as follows: 

     

    (a)
      Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required
      as
      a result of the specific and unique use of the Premises by Lessee as compared
      with uses by tenants in general, Lessee shall be fully responsible for the
      cost
      thereof, provided, however that if such Capital Expenditure is required during
      the last 2 years of this Lease and the cost thereof exceeds 6 months' Base
      Rent,
      Lessee may instead terminate this Lease unless Lessor notifies Lessee, in
      writing, within 10 days after receipt of Lessee's termination notice that Lessor
      has elected to pay the difference between the actual cost thereof and the amount
      equal to 6 months' Base Rent. If Lessee elects termination, Lessee shall
      immediately cease the use of the Premises which requires such Capital
      Expenditure and deliver to Lessor written notice specifying a termination date
      at least 90 days thereafter. Such termination date shall, however, in no event
      be earlier than the last day that Lessee could legally utilize the Premises
      without commencing such Capital Expenditure. 

     

    (b)
      If
      such Capital Expenditure is not the result of the specific and unique use of
      the
      Premises by Lessee (such as, governmentally mandated seismic modifications),
      then Lessor and Lessee shall allocate the obligation to pay for the portion
      of
      such costs reasonably attributable to the Premises pursuant to the formula
      set
      out in Paragraph 7.1(d); provided, however, that if such Capital Expenditure
      is
      required during the last 2 years of this Lease or if Lessor reasonably
      determines that it is not economically feasible to pay its share thereof, Lessor
      shall have the option to terminate this Lease upon 90 days prior written notice
      to Lessee unless Lessee notifies Lessor, in writing, within 10 days after
      receipt of Lessor's termination notice that Lessee will pay for such Capital
      Expenditure. If Lessor does not elect to terminate, and fails to tender its
      share of any such Capital Expenditure, Lessee may advance such funds and deduct
      same, with Interest, from Rent until Lessor's share of such costs have been
      fully paid. If Lessee is unable to finance Lessor's share, or if the balance
      of
      the Rent due and payable for the remainder of this Lease is not sufficient
      to
      fully reimburse Lessee on an offset basis, Lessee shall have the right to
      terminate this Lease upon 30 days written notice to Lessor. 

     

    (c)
      Notwithstanding the above, the provisions concerning Capital Expenditures are
      intended to apply only to non-voluntary, unexpected, and new Applicable
      Requirements. If the Capital Expenditures are instead triggered by Lessee as
      a
      result of an actual or proposed change in use, change in intensity of use,
      or
      modification to the Premises then, and in that event, Lessee shall be fully
      responsible for the cost thereof, and Lessee shall not have any right to
      terminate this Lease. 

     

    2.4
      Acknowledgements.
      Lessee
      acknowledges that: (a) it has been advised by Lessor and/or Brokers to satisfy
      itself with respect to the condition of the Premises (including but not limited
      to the electrical, HVAC and fire sprinkler systems, security, environmental
      aspects, and compliance with Applicable Requirements and the Americans with
      Disabilities Act), and their suitability for Lessee's intended use, (b) Lessee
      has made such investigation as it deems necessary with reference to such matters
      and assumes all responsibility therefor as the same relates to its occupancy
      of
      the Premises, and (c) neither Lessor, Lessor's agents, nor Brokers have made
      any
      oral or written representations or warranties with respect to said matters
      other
      than as set forth in this Lease. In addition, Lessor acknowledges that: (i)
      Brokers have made no representations, promises or warranties concerning Lessee's
      ability to honor the Lease or suitability to occupy the Premises, and (ii)
      it is
      Lessor's sole responsibility to investigate the financial capability and/or
      suitability of all proposed tenants. 

     

    2.5
      Lessee
      as Prior Owner/Occupant.
      The
      warranties made by Lessor in Paragraph 2 shall be of no force or effect if
      immediately prior to the Start Date Lessee was the owner or occupant of the
      Premises. In such event, Lessee shall be responsible for any necessary
      corrective work. 

     

    2.6
      Vehicle
      Parking.
      Lessee
      shall be entitled to use the number of Unreserved Parking Spaces and Reserved
      Parking Spaces specified in Paragraph 1.2(b) on those portions of the Common
      Areas designated from time to time by Lessor for parking. Lessee shall not
      use
      more parking spaces than said number. Said parking spaces shall be used for
      parking by vehicles no larger than full-size passenger automobiles or pick-up
      trucks, herein called "Permitted
      Size Vehicles." Lessor
      may
      regulate the loading and unloading of vehicles by adopting Rules and Regulations
      as provided in Paragraph 2.9. No vehicles other than Permitted Size Vehicles
      may
      be parked in the Common Area without the prior written permission of Lessor.
      

     

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

     

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

     

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

     

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

     

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

     

    2.9
      Common
      Areas - Rules and Regulations.
      Lessor
      or such other person(s) as Lessor may appoint shall have the exclusive control
      and management of the Common Areas and shall have the right, from time to time,
      to establish, modify, amend and enforce reasonable rules and regulations
("Rules
      and Regulations") for
      the
      management, safety, care, and cleanliness of the grounds, the parking and
      unloading of vehicles and the preservation of 

    good
      order, as well as for the convenience of other occupants or tenants of the
      Building and the Project and their invitees. Lessee agrees to abide by and
      conform to all such Rules and Regulations, and to cause its employees,
      suppliers, shippers, customers, contractors and invitees to so abide and
      conform. Lessor shall not be responsible to Lessee for the non-compliance with
      said Rules and Regulations by other tenants of the Project. 

    

      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    
      3.
        Term.
        

    

     

    3.1
      Term.
      The
      Commencement Date, Expiration Date and Original Term of this Lease are as
      specified in Paragraph 1.3. 

     

    3.2
      Early
      Possession.
      If
      Lessee totally or partially occupies the Premises prior to the Commencement
      Date, the obligation to pay Base Rent shall be abated for the period of such
      early possession. All other terms of this Lease (including but not limited
      to
      the obligations to pay Lessee's Share of Common Area Operating Expenses, Real
      Property Taxes and insurance premiums and to maintain the Premises) shall,
      however, be in effect during such period. Any such early possession shall not
      affect the Expiration Date. 

     

    3.3
      Delay
      In Possession.
      Lessor
      agrees to use its best commercially reasonable efforts to deliver possession
      of
      the Premises to Lessee by the Commencement Date. If, despite said efforts,
      Lessor is unable to deliver possession as agreed, Lessor shall not be subject
      to
      any liability therefor, nor shall such failure affect the validity of this
      Lease. Lessee shall not, however, be obligated to pay Rent or perform its other
      obligations until it receives possession of the Premises. If possession is
      not
      delivered within 60 days after the Commencement Date, Lessee may, at its option,
      by notice in writing within 10 days after the end of such 60 day period, cancel
      this Lease, in which event the Parties shall be discharged from all obligations
      hereunder. If such written notice is not received by Lessor within said 10
      day
      period, Lessee's right to cancel shall terminate. Except as otherwise provided,
      if possession is not tendered to Lessee by the Start Date and Lessee does not
      terminate this Lease, as aforesaid, any period of rent abatement that Lessee
      would otherwise have enjoyed shall run from the date of delivery of possession
      and continue for a period equal to what Lessee would otherwise have enjoyed
      under the terms hereof, but minus any days of delay caused by the acts or
      omissions of Lessee. If possession of the Premises is not delivered within
      4
      months after the Commencement Date, this Lease shall terminate unless other
      agreements are reached between Lessor and Lessee, in writing. 

     

    3.4
      Lessee
      Compliance.
      Lessor
      shall not be required to tender possession of the Premises to Lessee until
      Lessee complies with its obligation to provide evidence of insurance (Paragraph
      8.5). Pending delivery of such evidence, Lessee shall be required to perform
      all
      of its obligations under this Lease from and after the Start Date, including
      the
      payment of Rent, notwithstanding Lessor's election to withhold possession
      pending receipt of such evidence of insurance. Further, if Lessee is required
      to
      perform any other conditions prior to or concurrent with the Start Date, the
      Start Date shall occur but Lessor may elect to withhold possession until such
      conditions are satisfied. Such
      conditions are limited to those in this Lease Agreement, Addendum One and all
      exhibits attached hereto and any future Addendums. 

     

    
      4.
        Rent.
        

    

     

    4.1
      Rent
      Defined.
      All
      monetary obligations of Lessee to Lessor under the terms of this Lease (except
      for the Security Deposit) are deemed to be rent ("Rent").
      

     

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

     

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

     

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

            

    

     

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

            

    

     

    
      	
            	(bb)	
              Exterior
                signs and any tenant directories. 

            

    

     

    
      	
            	(cc)	
              Any
                fire detection and/or sprinkler systems.

            

    

     

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

            

    

     

    
      	
            	(iii)	
              Trash
                disposal, pest control services, property management, security services,
                and the costs of any environmental inspections.
                

            

    

     

    
      	
            	(iv)	
              Reserves
                set aside for maintenance and repair of Common Areas.
                

            

    

     

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

            

    

     

    
      	
            	(vi)	
              The
                cost of the premiums for the insurance maintained by Lessor pursuant
                to
                Paragraph 8. 

            

    

     

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

            

    

     

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

            

    

     

    
      	
            	(ix)	
              Any
                other services to be provided by Lessor that are stated elsewhere
                in this
                Lease to be a Common Area Operating Expense.

            

    

     

    The
      following are specifically excluded from the definition of Common Operating
      Expenses: 

     

    
      	-   	
              Advertising
                expenses, including the cost of maintaining a web site;
                

            

    

    
      	 	 

      	-   	
              Breach
                of lease - costs incurred because any party breaches any lease;
                

            

      	 	 

    

    
      	-   	
              Any
                costs reimbursed by insurance proceeds, (or would have been if Lessor
                carried customary insurance), a condemnation award, or indemnification
                by
                a third party; 

            

    

    
      	 	 

      	-   	
              The
                costs to correct initial construction defects;
                

            

      	 	 

    

    
      	-   	
              Any
                charitable or political contributions made by Lessor;
                

            

    

    
      	 	 

      	-   	
              Management
                fees in excess of 5% of gross rents receivable of the Project during
                such
                calendar year.

            

      	 	 

    

    
      	-   	
              Executive
                salaries for those above the level of building manager;
                

            

    

    
      	 	 

      	-   	
              Fines
                and penalties the Lessor must pay as a result of failure to comply
                with
                municipal codes, ordinances and the like;
                

            

      	 	 

    

    
      	-   	
              Any
                costs for a service not provided to Lessee or caused by the act or
                omission of other Lessees;

            

    

    
      	 	 

      	-   	
              Ownership
                related costs such as ground rent, mortgage interest, principal and
                transaction costs, build-out of Lessee space; clean-up of Lessor’s
                construction projects of any kind and general administrative expenses
                (overhead); 

            

      	 	 

    

    
      	-   	
              Payments
                to affiliates for allowable expenses in excess of market rates;
                

            

    

    
      	 	 

      	-   	
              Brokerage
                fees and commissions; legal fees and expenses to negotiate and enforce
                leases. 

            

    

     

    
      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

     

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

     

    (d)
      Lessee's Share of Common Area Operating Expenses shall be payable by Lessee
      within 10 days after a reasonably detailed statement of actual expenses is
      presented to Lessee. At Lessor's option, however, an amount may be estimated
      by
      Lessor from time to time of Lessee's Share of annual Common Area Operating
      Expenses and the same shall be payable monthly or quarterly, as Lessor shall
      designate, during each 12 month period of the Lease term, on the same day as
      the
      Base Rent is due hereunder. Lessor shall deliver to Lessee within 60 days after
      the expiration of each calendar year a reasonably detailed statement showing
      Lessee's Share of the actual Common Area Operating Expenses incurred during
      the
      preceding year. If Lessee's payments under this Paragraph 4.2(d) during the
      preceding year exceed Lessee's Share as indicated on such statement, Lessor
      shall credit the amount of such over-payment against Lessee's Share of Common
      Area Operating Expenses next becoming due. If Lessee's payments under this
      Paragraph 4.2(d) during the preceding year were less than Lessee's Share as
      indicated on such statement, Lessee shall pay to Lessor the amount of the
      deficiency within 10 days after delivery by Lessor to Lessee of the statement.
      

     

    (e)
      “Lessee
      shall have the one time right annually, at Lessee's sole cost, within 90 days
      following Lessee's receipt of the year end reconciliation of Common Area
      Operating Expenses from Lessor to have a third party accountant, mutually agreed
      upon by Lessee and Lessor, examine Lessor's books and records from which such
      statement was prepared at Lessor's accounting office. The pendency of an
      examination shall not of itself alter the amounts due or extend the time for
      payments; however, should the third party accountant factually determine that
      Lessor has overstated its statement of Common Area Operating Expenses, then
      Lessor shall refund any overpayment made by Lessee. Lessee shall pay for all
      costs of the third party accountant unless the Common Area Operating Expenses
      were misstated by ten percent (10%) or more in which case Lessor shall pay
      the
      reasonable fee of the third party accountant within thirty (30) days after
      receipt of written demand from Lessee.” 

     

    4.3
      Payment.
      Lessee
      shall cause payment of Rent to be received by Lessor in lawful money of the
      United States, without offset or deduction (except as specifically permitted
      in
      this Lease) and
      without demand from Lessor,
      on or
      before the day on which it is due. Rent for any period during the term hereof
      which is for less than one full calendar month shall be prorated based upon
      the
      actual number of days of said month. Payment of Rent shall be made to Lessor
      at
      its address stated herein or to such other persons or place as Lessor may from
      time to time designate in writing. Acceptance of a payment which is less than
      the amount then due shall not be a waiver of Lessor's rights to the balance
      of
      such Rent, regardless of Lessor's endorsement of any check so stating. In the
      event that any check, draft, or other instrument of payment given by Lessee
      to
      Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum
      of
      $25 in addition to any late charges which may be due. 

     

    5.
      Security
      Deposit.
      Lessee
      shall deposit with Lessor upon execution hereof the Security Deposit as security
      for Lessee's faithful performance of its obligations under this Lease. If Lessee
      fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use,
      apply
      or retain all or any portion of said Security Deposit for the payment of any
      amount due Lessor or to reimburse or compensate Lessor for any liability,
      expense, loss or damage which Lessor may suffer or incur by reason thereof.
      If
      Lessor uses or applies all or any portion of the Security Deposit, Lessee shall
      within 10 days after written request therefor deposit monies with Lessor
      sufficient to restore said Security Deposit to the full amount required by
      this
      Lease. If the Base Rent increases during the term of this Lease, Lessee shall,
      upon written request from Lessor, deposit additional monies with Lessor so
      that
      the total amount of the Security Deposit shall at all times bear the same
      proportion to the increased Base Rent as the initial Security Deposit bore
      to
      the initial Base Rent. Should the Agreed Use be amended to accommodate a
      material change in the business of Lessee or to accommodate a sublessee or
      assignee, Lessor shall have the right to increase the Security Deposit to the
      extent necessary, in Lessor's reasonable judgment, to account for any increased
      wear and tear that the Premises may suffer as a result thereof. If a change
      in
      control of Lessee occurs during this Lease and following such change the
      financial condition of Lessee is, in Lessor's reasonable judgment, significantly
      reduced, Lessee shall deposit such additional monies with Lessor as shall be
      sufficient to cause the Security Deposit to be at a commercially reasonable
      level based on such change in financial condition. Lessor shall not be required
      to keep the Security Deposit separate from its general accounts. Within 14
      days
      after the expiration or termination of this Lease, if Lessor elects to apply
      the
      Security Deposit only to unpaid Rent, and otherwise within 30 days after the
      Premises have been vacated pursuant to Paragraph 7.4(c) below, Lessor shall
      return that portion of the Security Deposit not used or applied by Lessor.
      No
      part of the Security Deposit shall be considered to be held in trust, to bear
      interest or to be prepayment for any monies to be paid by Lessee under this
      Lease. 

     

    6.
      Use.
      

     

    6.1
      Use.
      Lessee
      shall use and occupy the Premises only for the Agreed Use, or any other legal
      use which is reasonably comparable thereto, and for no other purpose. Lessee
      shall not use or permit the use of the Premises in a manner that is unlawful,
      creates damage, waste or a nuisance, or that disturbs occupants of or causes
      damage to neighboring premises or properties. Lessor shall not unreasonably
      withhold or delay its consent to any written request for a modification of
      the
      Agreed Use, so long as the same will not impair the structural integrity of
      the
      improvements on the Premises or the mechanical or electrical systems therein,
      and/or is not significantly more burdensome to the Premises. If Lessor elects
      to
      withhold consent, Lessor shall within 7 days after such request give written
      notification of same, which notice shall include an explanation of Lessor's
      objections to the change in the Agreed Use. 

     

    6.2
      Hazardous
      Substances.
      

     

    (a)
      Reportable
      Uses Require Consent.
      The term
"Hazardous
      Substance" as
      used in
      this Lease shall mean any product, substance, or waste whose presence, use,
      manufacture, disposal, transportation, or release, either by itself or in
      combination with other materials expected to be on the Premises, is either:
      (i)
      potentially injurious to the public health, safety or welfare, the environment
      or the Premises, (ii) regulated or monitored by any governmental authority,
      or
      (iii) a basis for potential liability of Lessor to any governmental agency
      or
      third party under any applicable statute or common law theory. Hazardous
      Substances shall include, but not be limited to, hydrocarbons, petroleum,
      gasoline, and/or crude oil or any products, by-products or fractions thereof.
      Lessee shall not engage in any activity in or on the Premises which constitutes
      a Reportable Use of Hazardous Substances without the express prior written
      consent of Lessor and timely compliance (at Lessee's expense) with all
      Applicable Requirements. "Reportable
      Use" shall
      mean
      (i) the installation or use of any above or below ground storage tank, (ii)
      the
      generation, possession, storage, use, transportation, or disposal of a Hazardous
      Substance that requires a permit from, or with respect to which a report,
      notice, registration or business plan is required to be filed with, any
      governmental authority, and/or (iii) the presence at the Premises of a Hazardous
      Substance with respect to which any Applicable Requirements requires that a
      notice be given to persons entering or occupying the Premises or neighboring
      properties. Notwithstanding the foregoing, Lessee may use any ordinary and
      customary materials reasonably required to be used in the normal course of
      the
      Agreed Use, so long as such use is in compliance with all Applicable
      Requirements, is not a Reportable Use, and does not expose the Premises or
      neighboring property to any meaningful risk of contamination or damage or expose
      Lessor to any liability therefor. In addition, Lessor may condition its consent
      to any Reportable Use upon receiving such additional assurances as Lessor
      reasonably deems necessary to protect itself, the public, the Premises and/or
      the environment against damage, contamination, injury and/or liability,
      including, but not limited to, the installation (and removal on or before Lease
      expiration or termination) of protective modifications (such as concrete
      encasements) and/or increasing the Security Deposit. 

     

    (b)
      Duty
      to Inform Lessor.
      If
      Lessee knows, or has reasonable cause to believe, that a Hazardous Substance
      has
      come to be located in, on, under or about the Premises, other than as previously
      consented to by Lessor, Lessee shall immediately give written notice of such
      fact to Lessor, and provide Lessor with a copy of any report, notice, claim
      or
      other documentation which it has concerning the presence of such Hazardous
      Substance. 

     

    (c)
      Lessee
      Remediation.
      Lessee
      shall not cause or permit any Hazardous Substance to be spilled or released
      in,
      on, under, or about the Premises (including through the plumbing or sanitary
      sewer system) and shall promptly, at Lessee's expense, take all investigatory
      and/or remedial action reasonably recommended, whether or not formally ordered
      or required, for the cleanup of any contamination of, and for the maintenance,
      security and/or monitoring of the Premises or neighboring properties, that
      was
      caused or materially contributed to by Lessee, or pertaining to or involving
      any
      Hazardous Substance brought onto the Premises during the term of this Lease,
      by
      or for Lessee, or any third party. 

     

    (d)
      Lessee
      Indemnification.
      Lessee
      shall indemnify, defend and hold Lessor, its agents, employees, lenders and
      ground lessor, if any, harmless from and against any and all loss of rents
      and/or damages, liabilities, judgments, claims, expenses, penalties, and
reasonable
      attorneys' and consultants' fees arising out of or involving any Hazardous
      Substance brought onto the Premises by or for Lessee, or any third party
on
      Lessee’s behalf
      (provided, however, that Lessee shall have no liability under this Lease with
      respect to underground migration of any Hazardous Substance under the Premises
      from areas outside of the Project). Lessee's obligations shall include, but
      not
      be limited to, the effects of any contamination or injury to person, property
      or
      the environment created or suffered by Lessee, and the cost of investigation,
      removal, remediation, restoration and/or abatement, and shall survive the
      expiration or termination of this Lease. No termination, cancellation or release
      agreement entered into by Lessor and Lessee shall release Lessee from its
      obligations under this Lease with respect to Hazardous Substances, unless
      specifically so agreed by Lessor in writing at the time of such agreement.
      

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    
       

    

    (e)
      Lessor
      Indemnification.
      Lessor
      and its successors and assigns shall indemnify, defend, reimburse and hold
      Lessee, its employees and lenders, harmless from and against any and all
      environmental damages, including the cost of remediation, which existed as
      a
      result of Hazardous Substances on the Premises prior to the Start Date or which
      are caused by the gross negligence or willful misconduct of Lessor, its agents
      or employees. Lessor's obligations, as and when required by the Applicable
      Requirements, shall include, but not be limited to, the cost of investigation,
      removal, remediation, restoration and/or abatement, and shall survive the
      expiration or termination of this Lease. 

     

    (f)
      Investigations
      and Remediations.
      Lessor
      shall retain the responsibility and pay for any investigations or remediation
      measures required by governmental entities having jurisdiction with respect
      to
      the existence of Hazardous Substances on the Premises prior to the Start Date,
      unless such remediation measure is required as a result of Lessee's use
      (including "Alterations", as defined in paragraph 7.3(a) below) of the Premises,
      in which event Lessee shall be responsible for such payment. Lessee shall
      cooperate fully in any such activities at the request of Lessor, including
      allowing Lessor and Lessor's agents to have reasonable access to the Premises
      at
      reasonable times in order to carry out Lessor's investigative and remedial
      responsibilities. 

     

    (g)
      Lessor
      Termination Option.
      If a
      Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term
      of
      this Lease, unless Lessee is legally responsible therefor (in which case Lessee
      shall make the investigation and remediation thereof required by the Applicable
      Requirements and this Lease shall continue in full force and effect, but subject
      to Lessor's rights under Paragraph 6.2(d) and Paragraph 13), Lessor may, at
      Lessor's option, either (i) investigate and remediate such Hazardous Substance
      Condition, if required, as soon as reasonably possible at Lessor's expense,
      in
      which event this Lease shall continue in full force and effect, or (ii) if
      the
      estimated cost to remediate such condition exceeds 12 times the then monthly
      Base Rent or $100,000, whichever is greater, give written notice to Lessee,
      within 30 days after receipt by Lessor of knowledge of the occurrence of such
      Hazardous Substance Condition, of Lessor's desire to terminate this Lease as
      of
      the date 60 days following the date of such notice. In the event Lessor elects
      to give a termination notice, Lessee may, within 10 days thereafter, give
      written notice to Lessor of Lessee's commitment to pay the amount by which
      the
      cost of the remediation of such Hazardous Substance Condition exceeds an amount
      equal to 12 times the then monthly Base Rent or $100,000, whichever is greater.
      Lessee shall provide Lessor with said funds or satisfactory assurance thereof
      within 30 days following such commitment. In such event, this Lease shall
      continue in full force and effect, and Lessor shall proceed to make such
      remediation as soon as reasonably possible after the required funds are
      available. If Lessee does not give such notice and provide the required funds
      or
      assurance thereof within the time provided, this Lease shall terminate as of
      the
      date specified in Lessor's notice of termination. 

     

    6.3
      Lessee's
      Compliance with Applicable Requirements.
      Except
      as otherwise provided in this Lease, Lessee shall, at Lessee's sole expense,
      fully, diligently and in a timely manner, materially comply with all Applicable
      Requirements, the requirements of any applicable fire insurance underwriter
      or
      rating bureau, and the recommendations of Lessor's engineers and/or consultants
      which relate in any manner to the Premises, without regard to whether said
      requirements are now in effect or become effective after the Start Date. Lessee
      shall, within 10 days after receipt of Lessor's written request, provide Lessor
      with copies of all permits and other documents, and other information evidencing
      Lessee's compliance with any Applicable Requirements specified by Lessor, and
      shall immediately upon receipt, notify Lessor in writing (with copies of any
      documents involved) of any threatened or actual claim, notice, citation,
      warning, complaint or report pertaining to or involving the failure of Lessee
      or
      the Premises to comply with any Applicable Requirements. 

     

    6.4
      Inspection;
      Compliance Lessor
      and Lessor’s “Lender” (as defined in Paragraph 30) and consultants shall have
      the right to enter into Premises at any time, in case of an emergency, and
      otherwise at reasonable times upon prior notice for the purpose of inspecting
      the condition of the Premises and for verifying compliance by Lessee with this
      Lease. The cost of any such inspections shall be paid by Lessor, unless a
      violation of Applicable Requirements by Lessee, or a contamination caused by
      Lessee is found to exist or be imminent, or the inspection is requested or
      ordered by a governmental authority due to acts or omissions of Lessee. In
      such
      case, Lessee shall upon request reimburse Lessor for the cost of such
      inspection, so long as such inspection is reasonably related to the violation
      or
      contamination. 

     

    7.
      Maintenance;
      Repairs, Utility Installations; Trade Fixtures and
      Alterations.
      

     

    7.1
      Lessee's
      Obligations.
      

     

    (a)
      In
      General.
      Subject
      to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee's
      Compliance with Applicable Requirements), 7.2 (Lessor's Obligations), 9 (Damage
      or Destruction), and 14 (Condemnation), Lessee shall, at Lessee's sole expense,
      keep the Premises, Utility Installations (intended for Lessee's exclusive use,
      no matter where located), and Alterations in good order, condition and repair
      (whether or not the portion of the Premises requiring repairs, or the means
      of
      repairing the same, are reasonably or readily accessible to Lessee, and whether
      or not the need for such repairs occurs as a result of Lessee's use, any prior
      use, the elements or the age of such portion of the Premises), including, but
      not limited to, all equipment or facilities, such as plumbing, HVAC equipment,
      electrical, lighting facilities, boilers, pressure vessels,
      fixtures,
      interior walls, interior surfaces of exterior walls, ceilings, floors, windows,
      doors, plate glass, and skylights but excluding any items which are the
      responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the
      Premises in good order, condition and repair, shall exercise and perform good
      maintenance practices, specifically including the procurement and maintenance
      of
      the service contracts required by Paragraph 7.1(b) below. Lessee's obligations
      shall include restorations, replacements or renewals when necessary to keep
      the
      Premises and all improvements thereon or a part thereof in good order, condition
      and state of repair. 

     

    (b)
      Service
      Contracts.
      Lessee
      shall, at Lessee's sole expense, procure and maintain contracts, with copies
      to
      Lessor, in customary form and substance for, and with contractors specializing
      and experienced in the maintenance of the following equipment and improvements,
      if any, if and when installed on the Premises: (i) HVAC
      equipment, (ii) boiler and pressure vessels, (iii) clarifiers, and (iv) any
      other equipment, if reasonably required by Lessor. However, Lessor reserves
      the
      right, upon notice to Lessee, to procure and maintain any or all of such service
      contracts, on
      commercially reasonable terms,
      and if
      Lessor so elects, Lessee shall reimburse Lessor, upon demand, for the cost
      thereof. 

     

    (c)
      Failure
      to Perform.
      If
      Lessee fails to perform Lessee's obligations under this Paragraph 7.1, Lessor
      may enter upon the Premises after 10 days' prior written notice to Lessee
      (except in the case of an emergency, in which case no notice shall be required),
      perform such obligations on Lessee's behalf, and put the Premises in good order,
      condition and repair, and Lessee shall promptly reimburse Lessor for the cost
      thereof. 

     

    (d)
      Replacement.
      Subject
      to Lessee's indemnification of Lessor as set forth in Paragraph 8.7 below,
      and
      without relieving Lessee of liability resulting from Lessee's failure to
      exercise and perform good maintenance practices, if an item described in
      Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess
      of
      50% of the cost of replacing such item, then such item shall be replaced by
      Lessor, and the cost thereof shall be prorated between the Parties and Lessee
      shall only be obligated to pay, each month during the remainder of the term
      of
      this Lease, on the date on which Base Rent is due, an amount equal to the
      product of multiplying the cost of such replacement by a fraction, the numerator
      of which is one, and the denominator of which is 144 (ie. 1/144th of the cost
      per month). Lessee shall pay interest on the unamortized balance at a rate
      that
      is commercially reasonable in the judgment of Lessor's accountants. Lessee
      may,
      however, prepay its obligation at any time. 

     

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

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

     

    7.3
      Utility
      Installations; Trade Fixtures; Alterations.
      

     

    (a)
      Definitions.
      The term
"Utility
      Installations" refers
      to
      all floor and window coverings, air lines, power panels, electrical
      distribution, security and fire protection systems, communication systems,
      lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises.
      The term "Trade
      Fixtures" shall
      mean
      Lessee's machinery and equipment that can be removed without doing material
      damage to the Premises. The term "Alterations"
      shall
      mean
      any modification of the improvements, other than Utility Installations or Trade
      Fixtures, whether by addition or deletion. "Lessee
      Owned Alterations and/or Utility Installations" are
      defined as Alterations and/or Utility Installations made by Lessee that are
      not
      yet owned by Lessor pursuant to Paragraph 7.4(a). 

     

    (b)
      Consent.
      Lessee
      shall not make any Alterations or Utility Installations to the Premises without
      Lessor's prior written consent. Lessee may, however, make non-structural Utility
      Installations to the interior of the Premises (excluding the roof) without
      such
      consent but upon notice to Lessor, as long as they are not visible from the
      outside, do not involve puncturing, relocating or removing the roof or any
      existing walls, and the cumulative cost thereof during this Lease as extended
      does not exceed a sum equal to 3 month's Base Rent in the aggregate or a sum
      equal to one month's Base Rent in any one year. Notwithstanding the foregoing,
      Lessee shall not make or permit any roof penetrations and/or install anything
      on
      the roof without the prior written approval of Lessor. Lessor may, as a
      precondition to granting such approval, require Lessee to utilize a contractor
      chosen and/or approved by Lessor. Any Alterations or Utility Installations
      that
      Lessee shall desire to make and which require the consent of the Lessor shall
      be
      presented to Lessor in written form with detailed plans. Consent shall be deemed
      conditioned upon Lessee's: (i) acquiring all applicable governmental permits,
      (ii) furnishing Lessor with copies of both the permits and the plans and
      specifications prior to commencement of the work, and (iii) compliance with
      all
      conditions of said permits and other Applicable Requirements in a prompt and
      expeditious manner. Any Alterations or Utility Installations shall be performed
      in a good workmanlike manner with good and sufficient materials. Lessee shall
      promptly upon completion furnish Lessor with as-built plans and specifications.
      For work which costs an amount in excess of one month's Base Rent, Lessor may
      condition its consent upon Lessee providing a lien and completion bond in an
      amount equal to 150% of the estimated cost of such Alteration or Utility
      Installation and/or upon Lessee's posting an additional Security Deposit with
      Lessor. 

     

    (c)
      Indemnification.
      Lessee
      shall pay, when due, all claims for labor or materials furnished or alleged
      to
      have been furnished to or for Lessee at or for use on the Premises, which claims
      are or may be secured by any mechanic's or materialman's lien against the
      Premises or any interest therein. Lessee shall give Lessor not less than 10
      days
      notice prior to the commencement of any work in, on or about the Premises,
      and
      Lessor shall have the right to post notices of non-responsibility. If Lessee
      shall contest the validity of any such lien, claim or demand, then Lessee shall,
      at its sole expense defend and protect itself, Lessor and the Premises against
      the same and shall pay and satisfy any such adverse judgment that may be
      rendered thereon before the enforcement thereof. If Lessor shall require, Lessee
      shall furnish a surety bond in an amount equal to 150% of the amount of such
      contested lien, claim or demand, indemnifying Lessor against liability for
      the
      same. If Lessor elects to participate in any such action, Lessee shall pay
      Lessor's attorneys' fees and costs. 

     

    7.4
      Ownership;
      Removal; Surrender; and Restoration.
      

     

    (a)
      Ownership.
      Subject
      to Lessor's right to require removal or elect ownership as hereinafter provided,
      all Alterations and Utility Installations made by Lessee shall be the property
      of Lessee, but considered a part of the Premises. Lessor may, at any time,
      elect
      in writing to be the owner of all or any specified part of the Lessee Owned
      Alterations and Utility Installations. Unless otherwise instructed per paragraph
      7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall,
      at
      the expiration or termination of this Lease, become the property of Lessor
      and
      be surrendered by Lessee with the Premises. 

     

    (b)
      Removal.
      By
      delivery to Lessee of written notice from Lessor not earlier than 90 and not
      later than 30 days prior to the end of the term of this Lease, Lessor may
      require that any or all Lessee Owned Alterations or Utility Installations be
      removed by the expiration or termination of this Lease. Lessor may require
      the
      removal at any time of all or any part of any Lessee Owned Alterations or
      Utility Installations made without the required consent. 

     

    (c)
      Surrender;
      Restoration.
      Lessee
      shall surrender the Premises by the Expiration Date or any earlier termination
      date, with all of the improvements, parts and surfaces thereof broom clean
      and
      free of debris, and in good operating order, condition and state of repair,
      ordinary wear and tear excepted. "Ordinary wear and tear" shall not include
      any
      damage or deterioration that would have been prevented by good maintenance
      practice. Notwithstanding the foregoing, if this Lease is for 12 months or
      less,
      then Lessee shall surrender the Premises in the same condition as delivered
      to
      Lessee on the Start Date with NO allowance for ordinary wear and tear. Lessee
      shall repair any damage occasioned by the installation, maintenance or removal
      of Trade Fixtures, Lessee owned Alterations and/or Utility Installations,
      furnishings, and equipment as well as the removal of any storage tank installed
      by or for Lessee. Lessee shall also completely remove from the Premises any
      and
      all Hazardous Substances brought onto the Premises by or for Lessee, or any
      third party (except Hazardous Substances which were deposited via underground
      migration from areas outside of the Project) even if such removal would require
      Lessee to perform or pay for work that exceeds statutory requirements. Trade
      Fixtures shall remain the property of Lessee and shall be removed by Lessee.
      The
      failure by Lessee to timely vacate the Premises pursuant to this Paragraph
      7.4(c) without the express written consent of Lessor shall constitute a holdover
      under the provisions of Paragraph 26 below. 

     

    8.
      Insurance;
      Indemnity.
      

     

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

     

    8.2
      Liability
      Insurance.
      

     

    (a)
      Carried
      by Lessee.
      Lessee
      shall obtain and keep in force a Commercial General Liability policy of
      insurance protecting Lessee and Lessor as an additional insured against claims
      for bodily injury, personal injury and property damage based upon or arising
      out
      of the ownership, use, occupancy or maintenance of the Premises and all areas
      appurtenant thereto. Such insurance shall be on an occurrence basis providing
      single limit coverage in an amount not less than $1,000,000 per occurrence
      with
      an annual aggregate of not less than $2,000,000, an "Additional Insured Managers
      or Lessors of Premises Endorsement" and contain the "Amendment of the Pollution
      Exclusion Endorsement" for damage caused by heat, smoke or fumes from a hostile
      fire. The policy shall not contain any intra-insured exclusions as between
      insured persons or organizations, but shall include coverage for liability
      assumed under this Lease as an "insured
      contract" for
      the
      performance of Lessee's indemnity obligations under this Lease. The limits
      of
      said insurance shall not, however, limit the liability of Lessee nor relieve
      Lessee of any obligation hereunder. All insurance carried by Lessee shall be
      primary to and not contributory with any similar insurance carried by Lessor,
      whose insurance shall be considered excess insurance only. 

     

    (b)
      Carried
      by Lessor.
      Lessor
      shall maintain liability insurance as described in Paragraph 8.2(a), in addition
      to, and not in lieu of, the insurance required to be maintained by Lessee.
      Lessee shall not be named as an additional insured therein. 

     

    8.3
      Property
      Insurance - Building, Improvements and Rental Value.
      

     

    (a)
      Building
      and Improvements.
      Lessor
      shall obtain and keep in force a policy or policies of insurance in the name
      of
      Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender
      insuring loss or damage to the Premises. The amount of such insurance shall
      be
      equal to the full replacement cost of the Premises, as the same shall exist
      from
      time to time, or the amount required by any Lender, but in no event more than
      the commercially reasonable and available insurable value thereof. Lessee Owned
      Alterations and Utility Installations, Trade Fixtures, and Lessee's personal
      property shall be insured by Lessee under Paragraph 8.4. If the coverage is
      available and commercially appropriate, such policy or policies shall insure
      against all risks of direct physical loss or damage (except the perils of flood
      and/or earthquake unless required by a Lender), including coverage for debris
      removal and the enforcement of any Applicable Requirements requiring the
      upgrading, demolition, reconstruction or replacement of any portion of the
      Premises as the result of a covered loss. Said policy or policies shall also
      contain an agreed valuation provision in lieu of any coinsurance clause, waiver
      of subrogation, and inflation guard protection causing an increase in the annual
      property insurance coverage amount by a factor of not less than the adjusted
      U.S. Department of Labor Consumer Price Index for All Urban Consumers for the
      city nearest to where the Premises are located. If such insurance coverage
      has a
      deductible clause, the deductible amount shall not exceed $1,000 per occurrence.
      

     

    (b)
      Rental
      Value.
      Lessor
      shall also obtain and keep in force a policy or policies in the name of Lessor
      with loss payable to Lessor and any Lender, insuring the loss of the full Rent
      for one year with an extended period of indemnity for an additional 180 days
      ("Rental Value insurance"). Said insurance shall contain an agreed valuation
      provision in lieu of any coinsurance clause, and the amount of coverage shall
      be
      adjusted annually to reflect the projected Rent otherwise payable by Lessee,
      for
      the next 12 month period. 

     

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

     

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

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

     

    8.4
      Lessee's
      Property; Business Interruption Insurance.
      

     

    (a)
      Property
      Damage.
      Lessee
      shall obtain and maintain insurance coverage on all of Lessee's personal
      property, Trade Fixtures, 

    and
      Lessee
      Owned Alterations and Utility Installations. Such insurance shall be full
      replacement cost coverage with a deductible of not to exceed $1,000 per
      occurrence. The proceeds from any such insurance shall be used by Lessee for
      the
      replacement of personal property, Trade Fixtures and Lessee Owned Alterations
      and Utility Installations. Lessee shall provide Lessor with written evidence
      that such insurance is in force. 

     

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

     

    (c)
      No
      Representation of Adequate Coverage.
      Lessor
      makes no representation that the limits or forms of coverage of insurance
      specified herein are adequate to cover Lessee's property, business operations
      or
      obligations under this Lease. 

     

    8.5
      Insurance
      Policies.
      Insurance required herein shall be by companies duly licensed or admitted to
      transact business in the state where the Premises are located, and maintaining
      during the policy term a "General Policyholders Rating" of at least B+, V,
      as
      set forth in the most current issue of "Best's Insurance Guide", or such other
      rating as may be required by a Lender. Lessee shall not do or permit to be
      done
      anything which invalidates the required insurance policies. Lessee shall, prior
      to the Start Date, deliver to Lessor certified copies of policies of such
      insurance or certificates evidencing the existence and amounts of the required
      insurance. No such policy shall be cancelable or subject to modification except
      after 30 days prior written notice to Lessor. Lessee shall, at least 30 days
      prior to the expiration of such policies, furnish Lessor with evidence of
      renewals or "insurance binders" evidencing renewal thereof, or Lessor may order
      such insurance and charge the cost thereof to Lessee, which amount shall be
      payable by Lessee to Lessor upon demand. Such policies shall be for a term
      of at
      least one year, or the length of the remaining term of this Lease, whichever
      is
      less. If either Party shall fail to procure and maintain the insurance required
      to be carried by it, the other Party may, but shall not be required to, procure
      and maintain the same. 

     

    8.6
      Waiver
      of Subrogation.
      Without
      affecting any other rights or remedies, Lessee and Lessor each hereby release
      and relieve the other, and waive their entire right to recover damages against
      the other, for loss of or damage to its property arising out of or incident
      to
      the perils required to be insured against herein. The effect of such releases
      and waivers is not limited by the amount of insurance carried or required,
      or by
      any deductibles applicable hereto. The Parties agree to have their respective
      property damage insurance carriers waive any right to subrogation that such
      companies may have against Lessor or Lessee, as the case may be, so long as
      the
      insurance is not invalidated thereby. 

     

    8.7
      Indemnity.
      Except
      for Lessor's gross negligence or willful misconduct, Lessee shall indemnify,
      protect, defend and hold harmless the Premises, Lessor and its agents, Lessor's
      master or ground lessor, partners and Lenders, from and against any and all
      claims, loss of rents and/or damages, liens, judgments, penalties, attorneys'
      and consultants' fees, expenses and/or liabilities arising out of, involving,
      or
      in connection with, the use and/or occupancy of the Premises by Lessee. If
      any
      action or proceeding is brought against Lessor by reason of any of the foregoing
      matters, Lessee shall upon notice defend the same at Lessee's expense by counsel
      reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in
      such
      defense. Lessor need not have first paid any such claim in order to be defended
      or indemnified. 

     

    Lessor
      agrees to indemnify, protect, defend and hold harmless Lessee from and against
      any and all claims, loss, damage or expense, including reasonable attorneys'
      fees, with respect to any claim of damage or injury to persons or property
      at
      the Premises, caused by the gross negligence or intentional acts of Lessor
      or
      its authorized agents or employees. 

     

    8.8
      Exemption
      of Lessor from Liability.
      Lessor
      shall not be liable for injury or damage to the person or goods, wares,
      merchandise or other property of Lessee, Lessee's employees, contractors,
      invitees, customers, or any other person in or about the Premises, whether
      such
      damage or injury is caused by or results from fire, steam, electricity, gas,
      water or rain, or from the breakage, leakage, obstruction or other defects
      of
      pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures,
      or from any other cause, whether the said injury or damage results from
      conditions arising upon the Premises or upon other portions of the Building,
      or
      from other sources or places. Lessor shall not be liable for any damages arising
      from any act or neglect of any other tenant of Lessor nor from the failure
      of
      Lessor to enforce the provisions of any other lease in the Project.
      Notwithstanding Lessor's negligence or breach of this Lease, Lessor shall under
      no circumstances be liable for injury to Lessee's business or for any loss
      of
      income or profit therefrom. 

     

    9.
      Damage
      or Destruction.
      

     

    9.1
      Definitions.
      

     

    (a)
      "Premises
      Partial Damage" shall
      mean
      damage or destruction to the improvements on the Premises, other than Lessee
      Owned Alterations and Utility Installations, which can reasonably be repaired
      in
      3 months or less from the date of the damage or destruction, and the cost
      thereof does not exceed a sum equal to 6 month's Base Rent. Lessor shall notify
      Lessee in writing within 30 days from the date of the damage or destruction
      as
      to whether or not the damage is Partial or Total. 

     

    (b)
      "Premises
      Total Destruction" shall
      mean
      damage or destruction to the improvements on the Premises, other than Lessee
      Owned Alterations and Utility Installations and Trade Fixtures, which cannot
      reasonably be repaired in 3 months or less from the date of the damage or
      destruction and/or the cost thereof exceeds a sum equal to 6 month's Base Rent.
      Lessor shall notify Lessee in writing within 30 days from the date of the damage
      or destruction as to whether or not the damage is Partial or Total.

     

    (c)
      "Insured
      Loss" shall
      mean
      damage or destruction to improvements on the Premises, other than Lessee Owned
      Alterations and Utility Installations and Trade Fixtures, which was caused
      by an
      event required to be covered by the insurance described in Paragraph 8.3(a),
      irrespective of any deductible amounts or coverage limits involved.

     

    (d)
      "Replacement
      Cost" shall
      mean
      the cost to repair or rebuild the improvements owned by Lessor at the time
      of
      the occurrence to their condition existing immediately prior thereto, including
      demolition, debris removal and upgrading required by the operation of Applicable
      Requirements, and without deduction for depreciation. 

     

    (e)
      "Hazardous
      Substance Condition" shall
      mean
      the occurrence or discovery of a condition involving the presence of, or a
      contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in,
      on,
      or under the Premises. 

     

    9.2
      Partial
      Damage - Insured Loss.
      If a
      Premises Partial Damage that is an Insured Loss occurs, then Lessor shall,
      at
      Lessor's expense, repair such damage (but not Lessee's Trade Fixtures or Lessee
      Owned Alterations and Utility Installations) as soon as reasonably possible
      and
      this Lease shall continue in full force and effect; provided, however, that
      Lessee shall, at Lessor's election, make the repair of any damage or destruction
      the total cost to repair of which is $5,000 or less, and, in such event, Lessor
      shall make any applicable insurance proceeds available to Lessee on a reasonable
      basis for that purpose. Notwithstanding the foregoing, if the required insurance
      was not in force or the insurance proceeds are not sufficient to effect such
      repair, the Insuring Party shall promptly contribute the shortage in proceeds
      as
      and when required to complete said repairs. In the event, however, such shortage
      was due to the fact that, by reason of the unique nature of the improvements,
      full replacement cost insurance coverage was not commercially reasonable and
      available, Lessor shall have no obligation to pay for the shortage in insurance
      proceeds or to fully restore the unique aspects of the Premises unless Lessee
      provides Lessor with the funds to cover same, or adequate assurance thereof,
      within 10 days following receipt of written notice of such shortage and request
      therefor. If Lessor receives said funds or adequate assurance thereof within
      said 10 day period, the party responsible for making the repairs shall complete
      them as soon as reasonably possible and this Lease shall remain in full force
      and effect. If such funds or assurance are not received, Lessor may nevertheless
      elect by written notice to Lessee within 10 days thereafter to: (i) make such
      restoration and repair as is commercially reasonable with Lessor paying any
      shortage in proceeds, in which case this Lease shall remain in full force and
      effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall
      not
      be entitled to reimbursement of any funds contributed by Lessee to repair any
      such damage or destruction. Premises Partial Damage due to flood or earthquake
      shall be subject to Paragraph 9.3, notwithstanding that there may be some
      insurance coverage, but the net proceeds of any such insurance shall be made
      available for the repairs if made by either Party. 

     

    9.3
      Partial
      Damage - Uninsured Loss.
      If a
      Premises Partial Damage that is not an Insured Loss occurs, unless caused by
      a
      negligent or willful act of Lessee (in which event Lessee shall make the repairs
      at Lessee's expense), Lessor may either: (i) repair such damage as soon as
      reasonably possible at Lessor's expense, in which event this Lease shall
      continue in full force and effect, or (ii) terminate this Lease by giving
      written notice to Lessee within 30 days after receipt by Lessor of knowledge
      of
      the occurrence of such damage. Such termination shall be effective 60 days
      following the date of such notice. In the event Lessor elects to terminate
      this
      Lease, Lessee shall have the right within 10 days after receipt of the
      termination notice to give written notice to Lessor of
      Lessee's commitment to pay for the repair of such damage without reimbursement
      from Lessor. Lessee shall provide Lessor with said funds or satisfactory
      assurance thereof within 30 days after making such commitment. In such event
      this Lease shall continue in full force and effect, and Lessor shall proceed
      to
      make such repairs as soon as reasonably possible after the required funds are
      available. If Lessee does not make the required commitment, this Lease shall
      terminate as of the date specified in the termination notice. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

     

    9.4
      Total
      Destruction.
      Notwithstanding any other provision hereof, if a Premises Total Destruction
      occurs, this Lease shall terminate 60 days following such Destruction. If the
      damage or destruction was caused by the gross negligence or willful misconduct
      of Lessee, Lessor shall have the right to recover Lessor's damages from Lessee,
      except as provided in Paragraph 8.6. 

     

    9.5
      Damage
      Near End of Term.
      If at
      any time during the last 6 months of this Lease there is damage for which the
      cost to repair exceeds one month's Base Rent, whether or not an Insured Loss,
      Lessor may terminate this Lease effective 60 days following the date of
      occurrence of such damage by giving a written termination notice to Lessee
      within 30 days after the date of occurrence of such damage. Notwithstanding
      the
      foregoing, if Lessee at that time has an exercisable option to extend this
      Lease
      or to purchase the Premises, then Lessee may preserve this Lease by, (a)
      exercising such option and (b) providing Lessor with any shortage in insurance
      proceeds (or adequate assurance thereof) needed to make the repairs on or before
      the earlier of (i) the date which is 10 days after Lessee's receipt of Lessor's
      written notice purporting to terminate this Lease, or (ii) the day prior to
      the
      date upon which such option expires. If Lessee duly exercises such option during
      such period and provides Lessor with funds (or adequate assurance thereof)
      to
      cover any shortage in insurance proceeds, Lessor shall, at Lessor's commercially
      reasonable expense, repair such damage as soon as reasonably possible and this
      Lease shall continue in full force and effect. If Lessee fails to exercise
      such
      option and provide such funds or assurance during such period, then this Lease
      shall terminate on the date specified in the termination notice and Lessee's
      option shall be extinguished. 

     

    9.6
      Abatement
      of Rent; Lessee's Remedies.
      

     

    (a)
      Abatement.
      In the
      event of Premises Partial Damage or Premises Total Destruction or a Hazardous
      Substance Condition for which Lessee is not responsible under this Lease, the
      Rent payable by Lessee for the period required for the repair, remediation
      or
      restoration of such damage shall be abated in proportion to the degree to which
      Lessee's use of the Premises is impaired, but not to exceed the proceeds
      received from the Rental Value insurance. All other obligations of Lessee
      hereunder shall be performed by Lessee, and Lessor shall have no liability
      for
      any such damage, destruction, remediation, repair or restoration except as
      provided herein. 

     

    (b)
      Remedies.
      If
      Lessor shall be obligated to repair or restore the Premises and does not
      commence, in a substantial and meaningful way, such repair or restoration within
      90 days after such obligation shall accrue, Lessee may, at any time prior to
      the
      commencement of such repair or restoration, give written notice to Lessor and
      to
      any Lenders of which Lessee has actual notice, of Lessee's election to terminate
      this Lease on a date not less than 60 days following the giving of such notice.
      If Lessee gives such notice and such repair or restoration is not commenced
      within 30 days thereafter, this Lease shall terminate as of the date specified
      in said notice. If the repair or restoration is commenced within such 30 days,
      this Lease shall continue in full force and effect. "Commence" shall mean either
      the unconditional authorization of the preparation of the required plans, or
      the
      beginning of the actual work on the Premises, whichever first occurs.

     

    9.7
      Termination;
      Advance Payments.
      Upon
      termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an
      equitable adjustment shall be made concerning advance Base Rent and any other
      advance payments made by Lessee to Lessor. Lessor shall, in addition, return
      to
      Lessee so much of Lessee's Security Deposit as has not been, or is not then
      required to be, used by Lessor. 

     

    9.8
      Waive
      Statutes.
      Lessor
      and Lessee agree that the terms of this Lease shall govern the effect of any
      damage to or destruction of the Premises with respect to the termination of
      this
      Lease and hereby waive the provisions of any present or future statute to the
      extent inconsistent herewith. 

     

    10.
      Real
      Property Taxes.
      

     

    10.1
      Definition.
      As used
      herein, the term "Real
      Property Taxes" shall
      include any form of assessment; real estate, general, special, ordinary or
      extraordinary, or rental levy or tax (other than inheritance, personal income
      or
      estate taxes); improvement bond; and/or license fee imposed upon or levied
      against any legal or equitable interest of Lessor in the Project, Lessor's
      right
      to other income therefrom, and/or Lessor's business of leasing, by any authority
      having the direct or indirect power to tax and where the funds are generated
      with reference to the Project address and where the proceeds so generated are
      to
      be applied by the city, county or other local taxing authority of a jurisdiction
      within which the Project is located. The term "Real Property Taxes" shall also
      include any tax, fee, levy, assessment or charge, or any increase therein,
      imposed by reason of events occurring during the term of this Lease, including
      but not limited to, a change in the ownership of the Project or any portion
      thereof or a change in the improvements thereon. In calculating Real Property
      Taxes for any calendar year, the Real Property Taxes for any real estate tax
      year shall be included in the calculation of Real Property Taxes for such
      calendar year based upon the number of days which such calendar year and tax
      year have in common. 

     

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

     

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

     

    10.4
      Joint
      Assessment.
      If the
      Building is not separately assessed, Real Property Taxes allocated to the
      Building shall be an equitable proportion of the Real Property Taxes for all
      of
      the land and improvements included within the tax parcel assessed, such
      proportion to be determined by 

    Lessor
      from the respective valuations assigned in the assessor's work sheets or such
      other information as may be reasonably available. Lessor's reasonable
      determination thereof, in good faith, shall be conclusive. 

     

    10.5
      Personal
      Property Taxes.
      Lessee
      shall pay prior to delinquency all taxes assessed against and levied upon Lessee
      Owned Alterations 

    and
      Utility Installations, Trade Fixtures, furnishings, equipment and all personal
      property of Lessee contained in the Premises. When possible, Lessee shall cause
      its Lessee Owned Alterations and Utility Installations, Trade Fixtures,
      furnishings, equipment and all other personal property to be assessed and billed
      separately from the real property of Lessor. If any of Lessee's said property
      shall be assessed with Lessor's real property, Lessee shall pay Lessor the
      taxes

    attributable
      to Lessee's property within 10 days after receipt of a written statement setting
      forth the taxes applicable to Lessee's property. 

     

    11.
      Utilities.
      Lessee
      shall pay for all water, gas, heat, light, power, telephone, trash disposal
      and
      other utilities and services supplied to the Premises, together with any taxes
      thereon. Notwithstanding the provisions of Paragraph 4.2, if at any time in
      Lessor's sole judgment, Lessor determines that Lessee is using a
      disproportionate amount of water, electricity or other commonly metered
      utilities,
      in
      comparison to other tenants,
      or that
      Lessee is generating such a large volume of trash as to require an increase
      in
      the size of the dumpster and/or an increase in the number of times per month
      that the dumpster is emptied, then Lessor may increase Lessee's Base Rent by
      an
      amount equal to such increased costs. 

     

    12.
      Assignment
      and Subletting.
      

     

    12.1
      Lessor's
      Consent Required.
      

      

    Lessee
      shall not voluntarily or by operation of law assign, transfer, mortgage or
      encumber (collectively, “assign or assignment”) or sublet all or any part of
      Lessee’s interest in this Lease to a third party or in the Premises without
      Lessor’s prior written consent, which shall not be unreasonably withheld or
      delayed. Lessee may sublet all or a portion of the Premises to an affiliate
      under common control of Lessee upon notice to Lessor, so long as the use is
      consistent with the original use and sublessee or assignee is of equal or
      greater net worth. For purposes of this provision, the term "Affiliate" shall
      mean any corporation other entity controlling, controlled by or under common
      control with (directly or indirectly) Lessee, including, without limitation,
      any
      parent corporation controlling Lessee or any subsidiary that Lessee controls.
      The term "control" as used
      herein shall mean the power to direct or cause the direction of the management
      and policies of the controlled entity through the ownership of more than fifty
      percent (50%) of the voting securities in said controlled
      entity.

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

     

    (b)
      A
      change in the control of Lessee shall constitute an assignment requiring
      consent. The transfer, on a cumulative basis, of 25% or more of the voting
      control of Lessee shall constitute a change in control for this purpose.

     

    (c)
      The
      involvement of Lessee or its assets in any transaction, or series of
      transactions (by way of merger, sale, acquisition, financing, transfer,
      leveraged buy-out or otherwise), whether or not a formal assignment or
      hypothecation of this Lease or Lessee's assets occurs, which results or will
      result in a reduction of the Net Worth of Lessee by an amount greater than
      25%
      of such Net Worth as it was represented at the time of the execution of this
      Lease or at the time of the most recent assignment to which Lessor has
      consented, or as it exists immediately prior to said transaction or transactions
      constituting such reduction, whichever was or is greater, shall be considered
      an
      assignment of this Lease to which Lessor may withhold its consent. "Net
      Worth of Lessee" shall
      mean
      the net worth of Lessee (excluding any guarantors) established under generally
      accepted accounting principles. 

     

    (d)
      An
      assignment or subletting without consent shall, at Lessor's option, be a Default
      curable after notice per Paragraph 13.1(c), or a noncurable Breach without
      the
      necessity of any notice and grace period. If Lessor elects to treat such
      unapproved assignment or subletting as a noncurable Breach, Lessor may either:
      (i) terminate this Lease, or (ii) upon 30 days written notice, increase the
      monthly Base Rent to 110% of the Base Rent then in effect. Further, in the
      event
      of such Breach and rental adjustment, (i) the purchase price of any option
      to
      purchase the Premises held by Lessee shall be subject to similar adjustment
      to
      110% of the price previously in effect, and (ii) all fixed and non-fixed rental
      adjustments scheduled during the remainder of the Lease term shall be increased
      to 110% of the scheduled adjusted rent. 

     

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

     

    12.2
      Terms
      and Conditions Applicable to Assignment and Subletting.
      

     

    (a)
      Regardless of Lessor's consent, no assignment or subletting shall: (i) be
      effective without the express written assumption by such assignee or sublessee
      of the obligations of Lessee under this Lease, (ii) release Lessee of any
      obligations hereunder, or (iii) alter the primary liability of Lessee for the
      payment of Rent or for the performance of any other obligations to be performed
      by Lessee. 

     

    (b)
      Lessor
      may accept Rent or performance of Lessee's obligations from any person other
      than Lessee pending approval or disapproval of an assignment. Neither a delay
      in
      the approval or disapproval of such assignment nor the acceptance of Rent or
      performance shall constitute a waiver or estoppel of Lessor's right to exercise
      its remedies for Lessee's Default or Breach. 

     

    (c)
      Lessor's consent to any assignment or subletting shall not constitute a consent
      to any subsequent assignment or subletting. 

     

    (d)
      In the
      event of any Default or Breach by Lessee, Lessor may proceed directly against
      Lessee, any Guarantors or anyone else responsible for the performance of
      Lessee's obligations under this Lease, including any assignee or sublessee,
      without first exhausting Lessor's remedies against any other person or entity
      responsible therefore to Lessor, or any security held by Lessor. 

     

    (e)
      Each
      request for consent to an assignment or subletting shall be in writing,
      accompanied by information relevant to Lessor's determination as to the
      financial and operational responsibility and appropriateness of the proposed
      assignee or sublessee, including but not limited to the intended use and/or
      required modification of the Premises, if any, together with a fee of $1,000
      or
      10% of the current monthly Base Rent applicable to the portion of the Premises
      which is the subject of the proposed assignment or sublease, whichever is
      greater, as consideration for Lessor's considering and processing said request.
      Lessee agrees to provide Lessor with such other or additional information and/or
      documentation as may be reasonably requested. 

     

    (f)
      Any
      assignee of, or sublessee under, this Lease shall, by reason of accepting such
      assignment or entering into such sublease, be deemed to have assumed and agreed
      to conform and comply with each and every term, covenant, condition and
      obligation herein to be observed or performed by Lessee during the term of
      said
      assignment or sublease, other than such obligations as are contrary to or
      inconsistent with provisions of an assignment or sublease to which Lessor has
      specifically consented to in writing. 

     

    (g)
      Lessor's consent to any assignment or subletting shall not transfer to the
      assignee or sublessee any Option granted to the original Lessee by this Lease
      unless such transfer is specifically consented to by Lessor in writing. (See
      Paragraph 39.2) 

     

    12.3
      Additional
      Terms and Conditions Applicable to Subletting.
      The
      following terms and conditions shall apply to any subletting by Lessee
      of
      all or any part of the Premises and shall be deemed included in all subleases
      under this Lease whether or not expressly incorporated therein: 

     

    (a)
      Lessee
      hereby assigns and transfers to Lessor all of Lessee's interest in all Rent
      payable on any sublease, and Lessor may collect such Rent and apply same toward
      Lessee's obligations under this Lease; provided, however, that until a Breach
      shall occur in the performance of Lessee's obligations, Lessee may collect
      said
      Rent. Lessor shall not, by reason of the foregoing or any assignment of such
      sublease, nor by reason of the collection of Rent, be deemed liable to the
      sublessee for any failure of Lessee to perform and comply with any of Lessee's
      obligations to such sublessee. Lessee hereby irrevocably authorizes and directs
      any such sublessee, upon receipt of a written notice from Lessor stating that
      a
      Breach exists in the performance of Lessee's obligations under this Lease,
      to
      pay to Lessor all Rent due and to become due under the sublease. Sublessee
      shall
      rely upon any such notice from Lessor and shall pay all Rents to Lessor without
      any obligation or right to inquire as to whether such Breach exists,
      notwithstanding any claim from Lessee to the contrary. 

     

    (b)
      In the
      event of a Breach by Lessee, Lessor may, at its option, require sublessee to
      attorn to Lessor, in which event Lessor shall undertake the obligations of
      the
      sublessor under such sublease from the time of the exercise of said option
      to
      the expiration of such sublease; provided, however, Lessor shall not be liable
      for any prepaid rents or security deposit paid by such sublessee to such
      sublessor or for any prior Defaults or Breaches of such sublessor. 

     

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

     

    (d)
      No
      sublessee shall further assign or sublet all or any part of the Premises without
      Lessor's prior written consent. 

     

    (e)
      Lessor
      shall deliver a copy of any notice of Default or Breach by Lessee to the
      sublessee, who shall have the right to cure the Default of Lessee within the
      grace period, if any, specified in such notice. The sublessee shall have a
      right
      of reimbursement and offset from and against Lessee for any such Defaults cured
      by the sublessee. 

     

    13.
      Default;
      Breach; Remedies.
      

     

    13.1
      Default;
      Breach.
      A
"Default"
      is
      defined
      as a failure by the Lessee to comply with or perform any of the terms,
      covenants, conditions or 

    Rules
      and
      Regulations under this Lease. A "Breach"
      is
      defined
      as the occurrence of one or more of the following Defaults, and the failure
      of
      Lessee to cure such Default within any applicable grace period: 

     

    (a)
      The
      abandonment of the Premises; or the vacating of the Premises without providing
      a
      commercially reasonable level of security, or where the coverage of the property
      insurance described in Paragraph 8.3 is jeopardized as a result thereof, or
      without providing reasonable assurances to minimize potential vandalism.

     

    (b)
      The
      failure of Lessee to make any payment of Rent or any Security Deposit required
      to be made by Lessee hereunder, whether to Lessor or to a third party, when
      due,
      to provide reasonable evidence of insurance or surety bond, or to fulfill any
      obligation under this Lease which endangers or threatens life or property,
      where
      such failure continues for a period of 3 business days following written notice
      to Lessee. 

     

    (c)
      The
      failure by Lessee to provide (i) reasonable written evidence of compliance
      with
      Applicable Requirements, (ii) the service contracts, (iii) the rescission of
      an
      unauthorized assignment or subletting, (iv) an Estoppel Certificate, (v) a
      requested subordination, (vi) evidence concerning any guaranty and/or Guarantor,
      (vii) any document requested under Paragraph 41 (easements), or (viii) any
      other
      documentation or information which Lessor may reasonably require of Lessee
      under
      the terms of this Lease, where any such failure continues for a period of 10
      days following written notice to Lessee. 

     

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

     

    
      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

    (e)
      The
      occurrence of any of the following events: (i) the making of any general
      arrangement or assignment for the benefit of creditors; (ii) becoming a
"debtor"
      as
      defined
      in 11 U.S.C. § 101 or any successor statute thereto (unless, in the case of a
      petition filed against Lessee, the same is dismissed within 60 days); (iii)
      the
      appointment of a trustee or receiver to take possession of substantially all
      of
      Lessee's assets located at the Premises or of Lessee's interest in this Lease,
      where possession is not restored to Lessee within 30 days; or (iv) the
      attachment, execution or other judicial seizure of substantially all of Lessee's
      assets located at the Premises or of Lessee's interest in this Lease, where
      such
      seizure is not discharged within 30 days; provided, however, in the event that
      any provision of this subparagraph (e) is contrary to any applicable law, such
      provision shall be of no force or effect, and not affect the validity of the
      remaining provisions. 

     

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

     

    (g)
      If the
      performance of Lessee's obligations under this Lease is guaranteed: (i) the
      death of a Guarantor, (ii) the termination of a Guarantor's liability with
      respect to this Lease other than in accordance with the terms of such guaranty,
      (iii) a Guarantor's becoming insolvent or the subject of a bankruptcy filing,
      (iv) a Guarantor's refusal to honor the guaranty, or (v) a Guarantor's breach
      of
      its guaranty obligation on an anticipatory basis, and Lessee's failure, within
      60 days following written notice of any such event, to provide written
      alternative assurance or security, which, when coupled with the then existing
      resources of Lessee, equals or exceeds the combined financial resources of
      Lessee and the Guarantors that existed at the time of execution of this Lease.
      

     

    13.2
      Remedies.
      If
      Lessee fails to perform any of its affirmative duties or obligations, within
      10
      days after written notice (or in case of an emergency, without notice), Lessor
      may, at its option, perform such duty or obligation on Lessee's behalf,
      including but not limited to the obtaining of reasonably required bonds,
      insurance policies, or governmental licenses, permits or approvals. The costs
      and expenses of any such performance by Lessor shall be due and payable by
      Lessee upon receipt of invoice therefor. If any check given to Lessor by Lessee
      shall not be honored by the bank upon which it is drawn, Lessor, at its option,
      may require all future payments to be made by Lessee to be by cashier's check.
      In the event of a Breach, Lessor may, with or without further notice or demand,
      and without limiting Lessor in the exercise of any right or remedy which Lessor
      may have by reason of such Breach: 

     

    (a)
      Terminate Lessee's right to possession of the Premises by any lawful means,
      in
      which case this Lease shall terminate and Lessee shall immediately surrender
      possession to Lessor. In such event Lessor shall be entitled to recover from
      Lessee: (i) the unpaid Rent which had been earned at the time of termination;
      (ii) the worth at the time of award of the amount by which the unpaid rent
      which
      would have been earned after termination until the time of award exceeds the
      amount of such rental loss that the Lessee proves could have been reasonably
      avoided; (iii) the worth at the time of award of the amount by which the unpaid
      rent for the balance of the term after the time of award exceeds the amount
      of
      such rental loss that the Lessee proves could be reasonably avoided; and (iv)
      any other amount necessary to compensate Lessor for all the detriment
      proximately caused by the Lessee's failure to perform its obligations under
      this
      Lease or which in the ordinary course of things would be likely to result
      therefrom, including but not limited to the cost of recovering possession of
      the
      Premises, expenses of reletting, including necessary renovation and alteration
      of the Premises, reasonable attorneys' fees, and that portion of any leasing
      commission paid by Lessor in connection with this Lease applicable to the
      unexpired term of this Lease. The worth at the time of award of the amount
      referred to in provision (iii) of the immediately preceding sentence shall
      be
      computed by discounting such amount at the discount rate of the Federal Reserve
      Bank of the District within which the Premises are located at the time of award
      plus one percent. Efforts by Lessor to mitigate damages caused by Lessee's
      Breach of this Lease shall not waive Lessor's right to recover damages under
      Paragraph 12. If termination of this Lease is obtained through the provisional
      remedy of unlawful detainer, Lessor shall have the right to recover in such
      proceeding any unpaid Rent and damages as are recoverable therein, or Lessor
      may
      reserve the right to recover all or any part thereof in a separate suit. If
      a
      notice and grace period required under Paragraph 13.1 was not previously given,
      a notice to pay rent or quit, or to perform or quit given to Lessee under the
      unlawful detainer statute shall also constitute the notice required by Paragraph
      13.1. In such case, the applicable grace period required by Paragraph 13.1
      and
      the unlawful detainer statute shall run concurrently, and the failure of Lessee
      to cure the Default within the greater of the two such grace periods shall
      constitute both an unlawful detainer and a Breach of this Lease entitling Lessor
      to the remedies provided for in this Lease and/or by said statute. 

     

    (b)
      Continue the Lease and Lessee's right to possession and recover the Rent as
      it
      becomes due, in which event Lessee may sublet or assign, subject only to
      reasonable limitations. Acts of maintenance, efforts to relet, and/or the
      appointment of a receiver to protect the Lessor's interests, shall not
      constitute a termination of the Lessee's right to possession. 

     

    (c)
      Pursue
      any other remedy now or hereafter available under the laws or judicial decisions
      of the state wherein the Premises are located. The expiration or termination
      of
      this Lease and/or the termination of Lessee's right to possession shall not
      relieve Lessee from liability under any indemnity provisions of this Lease
      as to
      matters occurring or accruing during the term hereof or by reason of Lessee's
      occupancy of the Premises. 

     

    13.3
      Inducement
      Recapture.
      Any
      agreement for free or abated rent or other charges, or for the giving or paying
      by Lessor to or for Lessee of any cash or other bonus, inducement or
      consideration for Lessee's entering into this Lease, all of which concessions
      are hereinafter referred to as "Inducement
      Provisions",
      shall be
      deemed conditioned upon Lessee's full and faithful performance of all of the
      terms, covenants and conditions of this Lease. Upon Breach of this Lease by
      Lessee, any such Inducement Provision shall automatically be deemed deleted
      from
      this Lease and of no further force or effect, and any rent, other charge, bonus,
      inducement or consideration theretofore abated, given or paid by Lessor under
      such an Inducement Provision shall be immediately due and payable by Lessee
      to
      Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The
      acceptance by Lessor of rent or the cure of the Breach which initiated the
      operation of this paragraph shall not be deemed a waiver by Lessor of the
      provisions of this paragraph unless specifically so stated in writing by Lessor
      at the time of such acceptance. 

     

    13.4
      Late
      Charges.
      Lessee
      hereby acknowledges that late payment by Lessee of Rent will cause Lessor to
      incur costs not contemplated by this Lease, the exact amount of which will
      be
      extremely difficult to ascertain. Such costs include, but are not limited to,
      processing and accounting charges, and late charges which may be imposed upon
      Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor
      within 5 business days
      after
      such amount shall be due, then, without any requirement for notice to Lessee,
      Lessee shall pay to Lessor a one-time late charge equal to 10% of each such
      overdue amount or $100, whichever is greater. The parties hereby agree that
      such
      late charge represents a fair and reasonable estimate of the costs Lessor will
      incur by reason of such late payment. Acceptance of such late charge by Lessor
      shall in no event constitute a waiver of Lessee's Default or Breach with respect
      to such overdue amount, nor prevent the exercise of any of the other rights
      and
      remedies granted hereunder. In the event that a late charge is payable
      hereunder, whether or not collected, for 3 consecutive installments of Base
      Rent, then notwithstanding any provision of this Lease to the contrary, Base
      Rent shall, at Lessor's option, become due and payable quarterly in advance.
      

     

    13.5
      Interest.
      Any
      monetary payment due Lessor hereunder, other than late charges, not received
      by
      Lessor, when due as to scheduled payments (such as Base Rent) or within 30
      days
      following the date on which it was due for non-scheduled payment, shall bear
      interest from the date when due, as to scheduled payments, or the 31st day
      after
      it was due as to non-scheduled payments. The interest ("Interest")
      charged
      shall be equal to the prime rate reported in the Wall Street Journal as
      published closest prior to the date when due plus 4%, but shall not exceed
      12%.
      Interest
      is payable in addition to the potential late charge provided for in Paragraph
      13.4. 

     

    13.6
      Breach
      by Lessor.
      

     

    (a)
      Notice
      of Breach.
      Lessor
      shall not be deemed in breach of this Lease unless Lessor fails within a
      reasonable time to perform an obligation required to be performed by Lessor.
      For
      purposes of this Paragraph, a reasonable time shall in no event be less than
      30
      days after receipt by Lessor, and any Lender whose name and address shall have
      been furnished Lessee in writing for such purpose, of written notice specifying
      wherein such obligation of Lessor has not been performed; provided, however,
      that if the nature of Lessor's obligation is such that more than 30 days are
      reasonably required for its performance, then Lessor shall not be in breach
      if
      performance is commenced within such 30 day period and thereafter diligently
      pursued to completion. 

     

    (b)
      Performance
      by Lessee on Behalf of Lessor.
      In the
      event that neither Lessor nor Lender cures said breach within 30 days after
      receipt of said notice, or if having commenced said cure they do not diligently
      pursue it to completion, then Lessee may elect to cure said breach at Lessee's
      expense and offset from Rent an amount equal to the greater of one month's
      Base
      Rent or the Security Deposit, and to pay an excess of such expense under
      protest, reserving Lessee's right to reimbursement from Lessor. Lessee shall
      document the cost of said cure and supply said documentation to Lessor.

     

    14.
      Condemnation.
      If the
      Premises or any portion thereof are taken under the power of eminent domain
      or
      sold under the threat of the exercise of said power (collectively "Condemnation"),
      this
      Lease shall terminate as to the part taken as of the date the condemning
      authority takes title or possession, whichever first occurs. If more than 10%
      of
      the floor area of the Unit, or more than 25% of Lessee's Reserved Parking
      Spaces, is taken by Condemnation, Lessee may, at Lessee's option, to be
      exercised in writing within 10 days after Lessor shall have given Lessee written
      notice of such taking (or in the absence of such notice, within 10 days after
      the condemning authority shall have taken possession) terminate this Lease
      as of
      the date the condemning authority takes such possession. If Lessee does not
      terminate this Lease in accordance with the foregoing, this Lease shall remain
      in full force and effect as to the portion of the Premises remaining, except
      that the Base Rent shall be reduced in proportion to the reduction in utility
      of
      the Premises caused by such Condemnation. Condemnation awards and/or payments
      shall be the property of Lessor, whether such award shall be made as
      compensation for diminution in value of the leasehold, the value of the part
      taken, or for severance damages; provided, however, that Lessee shall be
      entitled to any compensation for Lessee's relocation expenses, loss of business
      goodwill and/or Trade Fixtures, without regard to whether or not this Lease
      is
      terminated pursuant to the provisions of this Paragraph. All Alterations and
      Utility Installations made to the Premises by Lessee, for purposes of
      Condemnation only, shall be considered the property of the Lessee and Lessee
      shall be entitled to any and all compensation which is payable therefor. In
      the
      event that this Lease is not terminated by reason of the Condemnation, Lessor
      shall repair any damage to the Premises caused by such Condemnation.

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    15.
      Brokerage
      Fees.
      

     

    15.1
      Additional
      Commission.
      In
      addition to the payments owed pursuant to Paragraph 1.10 above, and unless
      Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a)
      if
      Lessee exercises any Option, (b) if Lessee acquires from Lessor any rights
      to
      the Premises or other premises owned by Lessor and located within the Project,
      (c) if Lessee remains in possession of the Premises, with the consent of Lessor,
      after the expiration of this Lease, or (d) if Base Rent is increased, whether
      by
      agreement or operation of an escalation clause herein, then, Lessor shall pay
      Brokers a fee in accordance with the schedule of the Brokers in effect at the
      time of the execution of this Lease. 

     

    15.2
      Assumption
      of Obligations.
      Any
      buyer or transferee of Lessor's interest in this Lease shall be deemed to have
      assumed Lessor's obligation hereunder. Brokers shall be third party
      beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor
      fails to pay to Brokers any amounts due as and for brokerage fees pertaining
      to
      this Lease when due, then such amounts shall accrue Interest. In addition,
      if
      Lessor fails to pay any amounts to Lessee's Broker when due, Lessee's Broker
      may
      send written notice to Lessor and Lessee of such failure and if Lessor fails
      to
      pay such amounts within 10 days after said notice, Lessee shall pay said monies
      to its Broker and offset such amounts against Rent. In addition, Lessee's Broker
      shall be deemed to be a third party beneficiary of any commission agreement
      entered into by and/or between Lessor and Lessor's Broker for the limited
      purpose of collecting any brokerage fee owed. 

     

    15.3
      Representations
      and Indemnities of Broker Relationships.
      Lessee
      and Lessor each represent and warrant to the other that it has had no dealings
      with any person, firm, broker or finder (other than the Brokers, if any) in
      connection with this Lease, and that no one other than said named Brokers is
      entitled to any commission or finder's fee in connection herewith. Lessee and
      Lessor do each hereby agree to indemnify, protect, defend and hold the other
      harmless from and against liability for compensation or charges which may be
      claimed by any such unnamed broker, finder or other similar party by reason
      of
      any dealings or actions of the indemnifying Party, including any costs,
      expenses, attorneys' fees reasonably incurred with respect thereto.

     

    16.
      Estoppel
      Certificates.
      

     

    (a)
      Each
      Party (as "Responding
      Party")
      shall
      within 10 days after written notice from the other Party (the "Requesting
      Party")
      execute,
      acknowledge and deliver to the Requesting Party a statement in writing in form
      similar to the then most current "Estoppel
      Certificate" form
      published by the American Industrial Real Estate Association, plus such
      additional information, confirmation and/or statements as may be reasonably
      requested by the Requesting Party. 

     

    (b)
      If the
      Responding Party shall fail to execute or deliver the Estoppel Certificate
      within such 10 day period, the Requesting Party may execute an Estoppel
      Certificate stating that: (i) the Lease is in full force and effect without
      modification except as may be represented by the Requesting Party, (ii) there
      are no uncured defaults in the Requesting Party's performance, and (iii) if
      Lessor is the Requesting Party, not more than one month's rent has been paid
      in
      advance. Prospective purchasers and encumbrances may rely upon the Requesting
      Party's Estoppel Certificate, and the Responding Party shall be estopped from
      denying the truth of the facts contained in said Certificate. 

     

    (c)
      If
      Lessor desires to finance, refinance, or sell the Premises, or any part thereof,
      Lessee and all Guarantors shall deliver to any potential lender or purchaser
      designated by Lessor such financial statements as may be reasonably required
      by
      such lender or purchaser, including but not limited to Lessee's financial
      statements for the past 3 years. All such financial statements shall be received
      by Lessor and such lender or purchaser in confidence and shall be used only
      for
      the purposes herein set forth. 

     

    17.
      Definition
      of Lessor.
      The term
"Lessor"
      as
      used
      herein shall mean the owner or owners at the time in question of the fee title
      to the Premises, or, if this is a sublease, of the Lessee's interest in the
      prior lease. In the event of a transfer of Lessor's title or interest in the
      Premises or this Lease, Lessor shall deliver to the transferee or assignee
      (in
      cash or by credit) any unused Security Deposit held by Lessor. Except as
      provided in Paragraph 15, upon such transfer or assignment and delivery of
      the
      Security Deposit, as aforesaid, the prior Lessor shall be relieved of all
      liability with respect to the obligations and/or covenants under this Lease
      thereafter to be performed by the Lessor. Subject to the foregoing, the
      obligations and/or covenants in this Lease to be performed by the Lessor shall
      be binding only upon the Lessor as hereinabove defined. Notwithstanding the
      above, and subject to the provisions of Paragraph 20 below, the original Lessor
      under this Lease, and all subsequent holders of the Lessor's interest in this
      Lease shall remain liable and responsible with regard to the potential duties
      and liabilities of Lessor pertaining to Hazardous Substances as outlined in
      Paragraph 6.2 above. 

     

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

     

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

     

    20.
      Limitation
      on Liability.
      Subject
      to the provisions of Paragraph 17 above, the obligations of Lessor under this
      Lease shall not constitute personal obligations of Lessor, the individual
      partners of Lessor or its or their individual partners, directors, officers
      or
      shareholders, and Lessee shall look to the Premises, and to no other assets
      of
      Lessor, for the satisfaction of any liability of Lessor with respect to this
      Lease, and shall not seek recourse against the individual partners of Lessor,
      or
      its or their individual partners, directors, officers or shareholders, or any
      of
      their personal assets for such satisfaction. 

     

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

     

    22.
      No
      Prior or Other Agreements; Broker Disclaimer.
      This
      Lease contains all agreements between the Parties with respect to any matter
      mentioned herein, and no other prior or contemporaneous agreement or
      understanding shall be effective. Lessor and Lessee each represents and warrants
      to the Brokers that it has made, and is relying solely upon, its own
      investigation as to the nature, quality, character and financial responsibility
      of the other Party to this Lease and as to the use, nature, quality and
      character of the Premises. Brokers have no responsibility with respect thereto
      or with respect to any default or breach hereof by either Party. The liability
      (including court costs and attorneys' fees), of any Broker with respect to
      negotiation, execution, delivery or performance by either Lessor or Lessee
      under
      this Lease or any amendment or modification hereto shall be limited to an amount
      up to the fee received by such Broker pursuant to this Lease; provided, however,
      that the foregoing limitation on each Broker's liability shall not be applicable
      to any gross negligence or willful misconduct of such Broker. 

     

    23.
      Notices.
      

     

    23.1
      Notice
      Requirements.
      All
      notices required or permitted by this Lease or applicable law shall be in
      writing and may be delivered in person (by hand or by courier) or may be sent
      by
      regular, certified or registered mail or U.S. Postal Service Express Mail,
      with
      postage prepaid, or by facsimile transmission, and shall be deemed sufficiently
      given if served in a manner specified in this Paragraph 23. The addresses noted
      adjacent to a Party's signature on this Lease shall be that Party's address
      for
      delivery or mailing of notices. Either Party may by written notice to the other
      specify a different address for notice, except that upon Lessee's taking
      possession of the Premises, the Premises shall constitute Lessee's address
      for
      notice. A copy of all notices to Lessor shall be concurrently transmitted to
      such party or parties at such addresses as Lessor may from time to time
      hereafter designate in writing.

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          
 

      

    

    23.2
      Date
      of Notice.
      Any
      notice sent by registered or certified mail, return receipt requested, shall
      be
      deemed given on the date of delivery shown on the receipt card, or if no
      delivery date is shown, the postmark thereon. If sent by regular mail the notice
      shall be deemed given 48 hours after the same is addressed as required herein
      and mailed with postage prepaid. Notices delivered by United States Express
      Mail
      or overnight courier that guarantee next day delivery shall be deemed given
      24
      hours after delivery of the same to the Postal Service or courier. Notices
      transmitted by facsimile transmission or similar means shall be deemed delivered
      upon telephone confirmation of receipt (confirmation report from fax machine
      is
      sufficient), provided a copy is also delivered via delivery or mail. If notice
      is received on a Saturday, Sunday or legal holiday, it shall be deemed received
      on the next business day. 

     

    24.
      Waivers.
      No
      waiver by Lessor of the Default or Breach of any term, covenant or condition
      hereof by Lessee, shall be deemed a waiver of any other term, covenant or
      condition hereof, or of any subsequent Default or Breach by Lessee of the same
      or of any other term, covenant or condition hereof. Lessor's consent to, or
      approval of, any act shall not be deemed to render unnecessary the obtaining
      of
      Lessor's consent to, or approval of, any subsequent or similar act by Lessee,
      or
      be construed as the basis of an estoppel to enforce the provision or provisions
      of this Lease requiring such consent. The acceptance of Rent by Lessor shall
      not
      be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be
      accepted by Lessor on account of moneys or damages due Lessor, notwithstanding
      any qualifying statements or conditions made by Lessee in connection therewith,
      which such statements and/or conditions shall be of no force or effect
      whatsoever unless specifically agreed to in writing by Lessor at or before
      the
      time of deposit of such payment. 

     

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

    

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

     

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

     

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

     

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

     

    (b)
      Brokers have no responsibility with respect to any default or breach hereof
      by
      either Party. The liability (including court costs and attorneys' fees), of
      any
      Broker with respect to any breach of duty, error or omission relating to this
      Lease shall not exceed the fee received by such Broker pursuant to this Lease;
      provided, however, that the foregoing limitation on each Broker's liability
      shall not be applicable to any gross negligence or willful misconduct of such
      Broker. 

     

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

     

    26.
      No
      Right To Holdover.
      Lessee
      has no right to retain possession of the Premises or any part thereof beyond
      the
      expiration or termination of this Lease. In the event that Lessee holds over,
      then the Base Rent shall be increased to 130%
      of the
      Base Rent applicable immediately preceding the expiration or termination.
      Nothing contained herein shall be construed as consent by Lessor to any holding
      over by Lessee. 

     

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

    
      

      28.
        Covenants
        and Conditions; Construction of Agreement.
        All
        provisions of this Lease to be observed or performed by Lessee are both
        covenants and conditions. In construing this Lease, all headings and titles
        are
        for the convenience of the Parties only and shall not be considered a part
        of
        this Lease. Whenever required by the context, the singular shall include
        the
        plural and vice versa. This Lease shall not be construed as if prepared by
        one
        of the Parties, but rather according to its fair meaning as a whole, as if
        both
        Parties had prepared it. 

       

      29.
        Binding
        Effect; Choice of Law.
        This
        Lease shall be binding upon the parties, their personal representatives,
        successors and assigns and be governed by the laws of the State in which
        the
        Premises are located. Any litigation between the Parties hereto concerning
        this
        Lease shall be initiated in the county in which the Premises are located.
        

       

      30.
        Subordination;
        Attornment; Non-Disturbance.
        

       

      30.1
        Subordination.
        This
        Lease and any Option granted hereby shall be subject and subordinate to any
        ground lease, mortgage, deed of trust, or other hypothecation or security
        device
        (collectively, "Security
        Device"),
        now or
        hereafter placed upon the Premises, to any and all advances made on the security
        thereof, and to all renewals, modifications, and extensions thereof. Lessee
        agrees that the holders of any such Security Devices (in this Lease together
        referred to as "Lender")
        shall
        have no liability or obligation to perform any of the obligations of Lessor
        under this Lease. Any Lender may elect to have this Lease and/or any Option
        granted hereby superior to the lien of its Security Device by giving written
        notice thereof to Lessee, whereupon this Lease and such Options shall be
        deemed
        prior to such Security Device, notwithstanding the relative dates of the
        documentation or recordation thereof. 

       

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

       

      30.3
        Non-Disturbance.
        With
        respect to Security Devices entered into by Lessor after the execution of
        this
        Lease, Lessee's subordination of this Lease shall be subject to receiving
        a
        commercially reasonable non-disturbance agreement (a "Non-Disturbance
        Agreement")
        from the
        Lender which Non-Disturbance Agreement provides that Lessee's possession
        of the
        Premises, and this Lease, including any options to extend the term hereof,
        will
        not be disturbed so long as Lessee is not in Breach hereof and attorns to
        the
        record owner of the Premises. Further, within 60 days after the execution
        of
        this Lease, Lessor shall use its commercially reasonable efforts to obtain
        a
        Non-Disturbance Agreement from the holder of any pre-existing Security Device
        which is secured by the Premises. In the event that Lessor is unable to provide
        the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee's
        option, directly contact Lender and attempt to negotiate for the execution
        and
        delivery of a Non-Disturbance Agreement. 

       

    

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

       

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    30.4
      Self-Executing.
      The
      agreements contained in this Paragraph 30 shall be effective without the
      execution of any further documents; provided, however, that, upon written
      request from Lessor or a Lender in connection with a sale, financing or
      refinancing of the Premises, Lessee and Lessor shall execute such further
      writings as may be reasonably required to separately document any subordination,
      attornment and/or Non-Disturbance Agreement provided for herein. 

     

    31.
      Attorneys'
      Fees.
      If any
      Party or Broker brings an action or proceeding involving the Premises whether
      founded in tort, contract or equity, or to declare rights hereunder, the
      Prevailing Party (as hereafter defined) in any such proceeding, action, or
      appeal thereon, shall be entitled to reasonable attorneys' fees. Such fees
      may
      be awarded in the same suit or recovered in a separate suit, whether or not
      such
      action or proceeding is pursued to decision or judgment. The term, "Prevailing
      Party" shall
      include, without limitation, a Party or Broker who substantially obtains or
      defeats the relief sought, as the case may be, whether by compromise,
      settlement, judgment, or the abandonment by the other Party or Broker of its
      claim or defense. The attorneys' fees award shall not be computed in accordance
      with any court fee schedule, but shall be such as to fully reimburse all
      attorneys' fees reasonably incurred. In addition, Lessor shall be entitled
      to
      attorneys' fees, costs and expenses incurred in the preparation and service
      of
      notices of Default and consultations in connection therewith, whether or not
      a
      legal action is subsequently commenced in connection with such Default or
      resulting Breach ($200 is a reasonable minimum per occurrence for such services
      and consultation). 

     

    32.
      Lessor's
      Access; Showing Premises; Repairs.
      Lessor
      and Lessor's agents shall have the right to enter the Premises at any time,
      in
      the case of an emergency, and otherwise at reasonable times for the purpose
      of
      showing the same to prospective purchasers, lenders, or tenants, and making
      such
      alterations, repairs, improvements or additions to the Premises as Lessor may
      deem necessary. All such activities shall be without abatement of rent or
      liability to Lessee. Lessor may at any time place on the Premises any ordinary
      "For
      Sale" signs
      and
      Lessor may during the last 6 months of the term hereof place on the Premises
      any
      ordinary "For
      Lease" signs.
      Lessee may at any time place on the Premises any ordinary "For
      Sublease" sign.
      

     

    33.
      Auctions.
      Lessee
      shall not conduct, nor permit to be conducted, any auction upon the Premises
      without Lessor's prior written consent. Lessor shall not be obligated to
      exercise any standard of reasonableness in determining whether to permit an
      auction. 

     

    34.
      Signs.
      Except
      for ordinary "For Sublease" signs which may be placed only on the Premises,
      Lessee shall not place any sign upon the Project without Lessor's prior written
      consent. All signs must comply with all Applicable Requirements. 

     

    35.
      Termination;
      Merger.
      Unless
      specifically stated otherwise in writing by Lessor, the voluntary or other
      surrender of this Lease by Lessee, the mutual termination or cancellation
      hereof, or a termination hereof by Lessor for Breach by Lessee, shall
      automatically terminate any sublease or lesser estate in the Premises; provided,
      however, that Lessor may elect to continue any one or all existing subtenancies.
      Lessor's failure within 10 days following any such event to elect to the
      contrary by written notice to the holder of any such lesser interest, shall
      constitute Lessor's election to have such event constitute the termination
      of
      such interest. 

     

    36.
      Consents.
      Except
      as otherwise provided herein, wherever in this Lease the consent of a Party
      is
      required to an act by or for the other Party, such consent shall not be
      unreasonably withheld or delayed. Lessor's actual reasonable costs and expenses
      (including but not limited to architects', attorneys', engineers' and other
      consultants' fees) incurred in the consideration of, or response to, a request
      by Lessee for any Lessor consent, including but not limited to consents to
      an
      assignment, a subletting or the presence or use of a Hazardous Substance, shall
      be paid by Lessee upon receipt of an invoice and supporting documentation
      therefor. Lessor's consent to any act, assignment or subletting shall not
      constitute an acknowledgment that no Default or Breach by Lessee of this Lease
      exists, nor shall such consent be deemed a waiver of any then existing Default
      or Breach, except as may be otherwise specifically stated in writing by Lessor
      at the time of such consent. The failure to specify herein any particular
      condition to Lessor's consent shall not preclude the imposition by Lessor at
      the
      time of consent of such further or other conditions as are then reasonable
      with
      reference to the particular matter for which consent is being given. In the
      event that either Party disagrees with any determination made by the other
      hereunder and reasonably requests the reasons for such determination, the
      determining party shall furnish its reasons in writing and in reasonable detail
      within 10 business days following such request. 

     

    37.
      Guarantor.
      

     

    37.1
      Execution.
      The
      Guarantors, if any, shall each execute a guaranty in the form most recently
      published by the American Industrial Real Estate Association, and each such
      Guarantor shall have the same obligations as Lessee under this Lease.

     

    37.2
      Default.
      It shall
      constitute a Default of the Lessee if any Guarantor fails or refuses, upon
      request to provide: (a) evidence of the execution of the guaranty, including
      the
      authority of the party signing on Guarantor's behalf to obligate Guarantor,
      and
      in the case of a corporate Guarantor, a certified copy of a resolution of its
      board of directors authorizing the making of such guaranty, (b) current
      financial statements, (c) an Estoppel Certificate, or (d) written confirmation
      that the guaranty is still in effect. 

     

    38.
      Quiet
      Possession.
      Subject
      to payment by Lessee of the Rent and performance of all of the covenants,
      conditions and provisions on Lessee's part to be observed and performed under
      this Lease, Lessee shall have quiet possession and quiet enjoyment of the
      Premises during the term hereof. 

     

    39.
      Options.
      If
      Lessee is granted an option, as defined below, then the following provisions
      shall apply. 

     

    39.1
      Definition.
      "Option"
      shall
      mean: (a) the right to extend the term of or renew this Lease or to extend
      or
      renew any lease that Lessee has on other property of Lessor; (b) the right
      of
      first refusal or first offer to lease either the Premises or other property
      of
      Lessor; (c) the right to purchase or the right of first refusal to purchase
      the
      Premises or other property of Lessor. 

     

    39.2
      Options
      Personal To Original Lessee.
      Any
      Option granted to Lessee in this Lease is personal to the original Lessee,
      and
      cannot be assigned or exercised by anyone other than said original Lessee and
      only while the original Lessee is in full possession of the Premises and, if
      requested by Lessor, with Lessee certifying that Lessee has no intention of
      thereafter assigning or subletting. 

     

    39.3
      Multiple
      Options.
      In the
      event that Lessee has any multiple Options to extend or renew this Lease, a
      later Option cannot be exercised unless the prior Options have been validly
      exercised. 

     

    39.4
      Effect
      of Default on Options.
      

     

    (a)
      Lessee
      shall have no right to exercise an Option: (i) during the period commencing
      with
      the giving of any notice of Default and continuing until said Default is cured,
      (ii) during the period of time any Rent is unpaid (without regard to whether
      notice thereof is given Lessee), (iii) during the time Lessee is in Breach
      of
      this Lease, or (iv) in the event that Lessee has been given 3 or more notices
      of
      separate Default, whether or not the Defaults are cured, during the 12 month
      period immediately preceding the exercise of the Option. 

     

    (b)
      The
      period of time within which an Option may be exercised shall not be extended
      or
      enlarged by reason of Lessee's inability to exercise an Option because of the
      provisions of Paragraph 39.4(a). 

     

    (c)
      An
      Option shall terminate and be of no further force or effect, notwithstanding
      Lessee's due and timely exercise of the Option, if, after such exercise and
      prior to the commencement of the extended term, (i) Lessee fails to pay Rent
      for
      a period of 30 days after such Rent becomes due (without any necessity of Lessor
      to give notice thereof), (ii) Lessor gives to Lessee 3 or more notices of
      separate Default during any 12 month period, whether or not the Defaults are
      cured, or (iii) if Lessee commits a Breach of this Lease. 

     

    40.
      Security
      Measures.
      Lessee
      hereby acknowledges that the Rent payable to Lessor hereunder does not include
      the cost of guard service or other security measures, and that Lessor shall
      have
      no obligation whatsoever to provide same. Lessee assumes all responsibility
      for
      the protection of the Premises, Lessee, its agents and invitees and their
      property from the acts of third parties. 

    
       

      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

         

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

       

    

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

     

    42.
      Performance
      Under Protest.
      If at
      any time a dispute shall arise as to any amount or sum of money to be paid
      by
      one Party to the other under the provisions hereof, the Party against whom
      the
      obligation to pay the money is asserted shall have the right to make payment
      "under protest" and such payment shall not be regarded as a voluntary payment
      and there shall survive the right on the part of said Party to institute suit
      for recovery of such sum. If it shall be adjudged that there was no legal
      obligation on the part of said Party to pay such sum or any part thereof, said
      Party shall be entitled to recover such sum or so much thereof as it was not
      legally required to pay. 

     

    43.
      Authority.
      If
      either Party hereto is a corporation, trust, limited liability company,
      partnership, or similar entity, each individual executing this Lease on behalf
      of such entity represents and warrants that he or she is duly authorized to
      execute and deliver this Lease on its behalf. Each party shall, within 30 days
      after request, deliver to the other party satisfactory evidence of such
      authority. 

     

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

     

    45.
      Offer.
      Preparation of this Lease by either party or their agent and submission of
      same
      to the other Party shall not be deemed an offer to lease to the other Party.
      This Lease is not intended to be binding until executed and delivered by all
      Parties hereto. 

     

    46.
      Amendments.
      This
      Lease may be modified only in writing, signed by the Parties in interest at
      the
      time of the modification. As long as they do not materially change Lessee's
      obligations hereunder, Lessee agrees to make such reasonable non-monetary
      modifications to this Lease as may be reasonably required by a Lender in
      connection with the obtaining of normal financing or refinancing of the
      Premises. 

     

    47.
      Multiple
      Parties.
      If more
      than one person or entity is named herein as either Lessor or Lessee, such
      multiple Parties shall have joint and several responsibility to comply with
      the
      terms of this Lease. 

     

    48.
      Waiver
      of Jury Trial.
      The
      Parties hereby waive their respective rights to trial by jury in any action
      or
      proceeding involving the Property or arising out of this Agreement.

     

    49.
      Mediation
      and Arbitration of Disputes.
      An
      Addendum requiring the Mediation and/or the Arbitration of all disputes between
      the Parties and/or Brokers arising out of this Lease 3 is 3 is not attached
      to
      this Lease. 

    
       

      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

         

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      
LESSOR
        AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND
        PROVISION CONTAINED HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR
        INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT
        THE
        TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE
        AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO
        THE
        PREMISES. 

    

     

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

     

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

     

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

     

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

     

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

     

    
      	
              Executed
                at 

            	
               

            	 	
              Executed
                at: 

            	
               

            
	
              on:
                

            	
               

            	 	
              on:
                

            	
               

            
	 	 	 	 	 
	
              By
                LESSOR:

            	 	 	
              By
                LESSEE:

            	 
	 	 	 	 	 
	
              LaPour
                Deer Valley, LLC, an Arizona Limited Liability Company

            	 	
              Crystal
                Tech Web Hosting, Inc. New York Corporation

            
	 	 	 

    

     

     

    

      
        	
                By:

              	 	 	
                By:

              	 
	
                Name
                  Printed: 

              	
                Jeffrey
                  S. LaPour

              	 	
                Name
                  Printed:

              	 
	
                Title:
                  

              	
                Manager

              	 	
                Title:

              	 
	
                Address:
                  

              	
                5525
                  S. Decatur Blvd. Suite 101

              	 	
                Address:

              	 
	 	
                Las
                  Vegas, NV. 89118

              	 	 	 
	
                Telephone/Facsimile:
                  

              	
                702.222.3022/
                  702.222.0961

              	 	
                Telephone/Facsimile:

              	 
	
                Federal
                  ID No. 

              	
                76-0773443

              	 	
                Federal
                  ID No.

              	 

      

    

     

    

    

      
        	
                BROKER:

              	 	 	
                BROKER:

              	 
	 	 	 
	
                Cushman
                  & Wakefield of Arizona Inc.

              	 	
                Cushman
                  & Wakefield of Arizona Inc.

              
	 	 	 
	 	 	 	 	 
	
                Attn:
                  

              	
                Steve
                  Sayre

              	 	
                Attn:
                  

              	
                Mike
                  Sayre

              
	
                Title
                  

              	
                Director

              	 	
                Title
                  

              	
                Director

              
	
                Address:
                  

              	
                2525
                  E. Camelback Road, Suite 1000

              	 	
                Address:
                  

              	
                2525
                  E. Camelback Road, Suite1000

              
	
                 

              	
                Phoenix,
                  AZ. 85016

              	 	 	
                Phoenix,
                  AZ. 85016

              
	
                Telephone/Facsimile:
                  

              	
                602-229-5928

              	 	
                Telephone/Facsimile:
                  

              	
                602-229-5928

              
	
                Federal
                  ID No.

              	 	 	
                Federal
                  ID No.

              	 

      

    

     

    
      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

         

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

     

    Addendum
      One 

     

    ADDENDUM
      ONE to and Exhibits thereto (this “Addendum”), as an attachment to that certain
      Lease dated May 4, 2006 (the “Lease”) and is made by and between LaPour Deer
      Valley, LLC, an Arizona limited liability company (“Lessor”) and Crystal Tech
      Web Hosting, Inc., a New York Corporation (“Lessee”). 

     

    TERMS
      

     

    In
      consideration of the mutual promises, provisions, terms, and conditions herein
      contained, the Parties hereby agree to the following additional provisions
      of
      said Lease:  

    

      
        
          	
                              
                    50. Base Rent Schedule
                    -
                    

                	
                  The
                    Base Rent shall be as follows:

                
	
                  Month
                    01  

                	
                  Free
                    of Base Rent (NNN expenses shall apply) 

                
	
                  Month
                    02 through 12:

                	
                  $19,650
                    per month (NNN) 

                
	
                  Month
                    13 through 24:

                	
                  $20,240
                    per month (NNN) 

                
	
                  Month
                    25 through 36:

                	
                  $20,847
                    per month (NNN) 

                
	
                  Month
                    37 through 48:

                	
                  $21,472
                    per month (NNN) 

                
	
                  Month
                    49 through 60:

                	
                  $22,116
                    per month (NNN) 

                
	
                  Month
                    61: 

                	
                  $22,780
                    per month (NNN) 

                

        

      

    

     

    As
      illustrated in the Base Rent Schedule above, the Base Rent shall be increased
      on
      the first day of the thirteenth (13th)
      month of
      the Lease Term and every twelve (12) months thereafter by an approximate fixed
      rate of three percent (3.0%) per annum. 

     

    
      	 	
              51.
                Early
                Possession
                -
                Lessor shall provide Lessee with one (1) month of early occupancy
                of the
                Premises to commence December 1, 2006. Lessee shall be subject to
                all
                terms and conditions of this Lease and is required to pay for the
                common
                Area Operating Expenses during the Early Occupancy Period. Lessee
                shall be
                required to provide Lessor a certificate of insurance consistent
                with the
                insurance requirements of the Lease prior to Lessee being granted
                access
                to the Premises. 

            

    

    
      	 	 

      	 	
              52.
                Commencement
                Date/Expiration Date -
                As
                per Section 1.3 Term, the Commencement Date shall be immediately
                following
                the Early Possession period and the Expiration Date shall be sixty-one
                (61) months thereafter. The Commencement Date is estimated as January
                1,
                2007. 

            

      	 	 

    

    
      	 	
              53.
                Estimated Common Area Operating Expenses
                -
                As referenced in Section 1.6 & 4.2(d) Common Area Operating Expenses:
                Lessor’s budget for the Common Area Operating Expenses is currently
                estimated to be $0.17 per square foot per month which equates to
                $2,550
                monthly. 

            

    

    
      	 	 

      	 	
              54.
                Miscellaneous Expenses
                -
                Lessor currently does not provide security services, pest
                control 
                within the Common Area Operating Expenses. In the event Lessor elects
                to
                provide such services (at Lessor’s reasonable election), Lessor reserves
                the right to include the expenses as part of the Common Area Operating
                Expense.

            

      	 	 

    

    
      	 	
              55.
                Right of First Refusal -
                If
                Landlord receives an offer for any contiguous space within Tenant’s
                building, Landlord will provide a copy of the offer to Tenant. Tenant
                shall have the option to lease the space upon the same terms and
                conditions stated in the offer. Tenant will have five (5) business
                days to
                accept or deny said offer after which if no response has been received
                from Tenant, Landlord will pursue the other
                offer.

            

    

    
      	 	 

      	 	
              56.
                Lessee
                Improvements 

            

    

     

    Office
      Improvements
      - Lessor
      shall construct approximately 15,000 square feet of Project Standard office
      space, (the “Office
      Improvements”)
      consistent with the Approved Floor Plan for the Premises attached hereto as
      Exhibit "B" (subject to any required code modifications) (the "Approved
      Floor Plan"),
      which
      shall be constructed in accordance with Lessor’s Building Standards And
      Specifications (attached hereto as Exhibit “D”). Lessor shall provide Lessee
      with a maximum Office Improvement Allowance of Six Hundred Thousand and no/100
      Dollars ($600,000.00), to be used in the design, planning, permitting and
      construction of Lessee’s Office Improvements within the Premises (the “Office
      Improvement Allowance”). In the event that the cost of Lessee’s Office
      Improvements exceeds the Office Improvement Allowance, Lessee shall be solely
      responsible for such excess costs, which estimated costs shall be paid for
      by
      Lessee upon execution of this lease and any difference between the estimated
      cost and the actual cost shall by payable prior to Tenant’s occupancy. Lessee
      shall be fully responsible for the cost of any additional Lessee Upgrades or
      any
      cost associated with modifications required for any Lessee Upgrades.

     

    A
      full set of construction documents shall be bid by three (3) separate
      contractors, the bids shall be reviewed by both Tenant and Landlord and the
      contractor shall be mutually agreed upon by both parties. 

    
       

        
          	
                	a.	
                  Changes
                    to Approved Floor Plan and Change Orders
                    -
                    In the event that Lessee requires changes to the Approved Floor
                    Plan or
                    any construction change order(s), Lessor shall evaluate the cost
                    thereof
                    and any delay such change or change order would have on the substantial
                    completion of the Lessee Improvements and shall advise Lessee
                    of the
                    amount of delay and the cost to implement such change or change
                    order. If
                    Lessee elects to cause the change or change order after reviewing
                    Lessor’s
                    cost and rental payable due to the delay, then the Lessee shall
                    pay the
                    sum of the cost and rental payable due to the delay, as set forth
                    by
                    Lessor, to Lessor within three (3) business days after Lessee
                    elects to
                    move forward with the change or change order. Said cost shall
                    include, but
                    not be limited to, all architectural, engineering and permit
                    fees,
                    construction change order costs, processing costs and the corresponding
                    amount of Base Rent and Common Area Operating Expenses lost due
                    to the
                    delay. In the event Lessee does not pay the cost and rental payable
                    due to
                    the delay within the three (3) business day period as set forth
                    above,
                    then the Lessor shall continue building the Lessee Improvements
                    according
                    to the original plan and Lessee agrees to accept the Premises
                    as though
                    the change or change order was never requested. Lessee understands
                    that
                    certain requested changes or change orders will require design
                    work prior
                    to Lessor being able to estimate the costs for the change or
                    change order
                    and in this case, the Lessee agrees to pay for the design costs
                    in advance
                    so that the Lessor can provide a reliable cost to Lessee for
                    the change or
                    change order. 

                

          	 	 	 

        

      

    

    
    

    
    

    
      
        
          	
                	b.	
                  Lessee’s
                    Representative
                    -
                    Lessee has designated  _____________
                    (“Lessee’s
                    Representative”)
                    as its sole representative with respect to the Lessee Improvements.
                    Lessee’s Representative shall have full authority to act on behalf of
                    Lessee for all purposes with respect to the Lessee Improvements.
                    

                

        

      

    

     

    
      	 	
              57.
                Usable
                Area and Rentable Area
                -
                The term “Usable Area” shall be the entire area included within the
                Premises, being the area bounded by the exterior surface of any glass
                walls (or the outside surface of the permanent exterior walls where
                there
                is no glass) of the building bounding such Premises, the inside surface
                of
                the exterior walls separating such Premises from any public corridors,
                utility rooms, or such other public areas on such floor, and the
                centerline of all walls separating such Premises from other areas
                leased
                or to be leased to other Lessees on such floor. The term “Rentable Area”
                shall mean the computation of multiplying the Usable Area of the
                Premises
                by the quotient of the division of the Rentable Area of the floor
                (the
                area of the floor to the drip line of any colonnade or outside surface
                of
                the dominant portion of the permanent outer walls, and the proportionate
                share of any utility rooms) by the Usable Area of the floor.
                

            

    

    
      	 	 

      	 	
              58.
                Signage
                -
                Lessor shall allow Lessee to install one (1) sign of the building
                subject
                to Lessor’s approval and in accordance with the Signage Criteria set forth
                in the Lease. Lessee shall be responsible for all costs related to
                the
                design, fabrication, installation, maintenance and removal of Lessee’s
                signage. Lessee agrees to remove its sign from the Premises prior
                to the
                termination date; and Lessee shall make all required repairs to the
                Premises at Lessee’s sole cost (see Exhibit “F” attached to this Lease).
                

            

    

    
    

     

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

     

    
      	 	
              59.
                Additional
                HVAC Maintenance
                -
                Notwithstanding the provisions set forth in Section 7.1(b), Service
                Contracts, Lessee shall provide Lessor, within a period of forty-five
                (45)
                days of its occupancy of the Premises, with evidence that it has
                entered
                into a preventative maintenance contract with a licensed heating
                and air
                conditioning contractor. As a minimum, said contractor shall maintain
                the
                evaporative coolers and HVAC systems within the Premises twice per
                year
                for the duration of the Lease Term, or any extension thereof. Lessee
                agrees to change the filters for the office HVAC system every thirty
                (30)
                days in order to prevent damage to the units. 

            

    

    
      	 	 

      	 	
              60.
                Rent
                Payments
                -
                The payment of Rent (Base Rent & Common Area Operating Expenses) is
                due on the first day of each month without
                notice
                from Lessor. 

            

      	 	 

    

    
      	 	
              61.
                Returned
                Rent Checks/Non-Sufficient Funds
                -
                Notwithstanding the provisions set forth in Section 13.4, Late Charges,
                and Section 13.5, Interest on past due obligations of the Lease,
                In the
                event that Lessee’s monthly rent check is returned to Lessor due to
                non-sufficient funds, Lessee shall be required, for the remainder
                of the
                Lease Term; to pay Lessor said monthly rent in the form of a cashiers
                check. 

            

    

    
      	 	 

      	 	
              62.
                Not
                an Offer
                -
                Preparation of this Lease by Lessor or Lessor’s agent and submission of
                same to Lessee shall not be deemed an offer to Lessee to lease. This
                Lease
                shall become effective and binding upon the parties hereto only upon
                mutual execution by both parties. Lessee shall be aware that Lessor’s
                customary practice is not to reserve the space, which is the subject
                of
                this Lease until such time as this Lease has been fully executed
                by both
                parties. As a result, Lessor may have made or subsequently may make
                other
                proposals on the space, which is the subject of this Lease.
                

            

    

     

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

    

    Exhibit
      “A” 

     

    SITE
      PLAN

     

      

     

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      “B” 

     

    Approved
      Floor Plan 

     

      

     

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      “C” 

     

    Preliminary
      Construction Bid 

     

     

     

    

      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

    

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    Exhibit
      “D” 

     

    BUILDING
      STANDARDS and SPECIFICATIONS 

     

    These
      Lessee Improvement Building Standards must be adhered to in completing the
      work.
      In the event of special circumstances, it will be the Lessor’s decision as to
      whether or not a deviation from the Standards will be allowed. 

     

    CONCRETE
      

     

    Any
      removal and replacement of the concrete slab shall meet the requirements of
      the
      existing slab. Backfill and sub-grade shall be compacted to 95% of maximum
      dry
      density determined in accordance with ASTM 0-1557. Dowel the new concrete patch
      to the existing slab with 1⁄2 inch steel dowels, extending a minimum of 8 inch
      into slab at 18 inches o.c; secured with epoxy. Use 4,000 p.s.i. (at 28 days)
      concrete for the pour back. All trench patching in the warehouse area shall
      have
      a 1/8 inch radius edge. Prior to pouring concrete, stone the existing saw cut
      edge with an abrasive brick to approximate a 1/8 inch radius edge. 

     

    INSULATION
      

     

    R-11
      unfaced batt insulation in all exterior office walls (9'-0") includes portion
      of
      demising wall that borders the office space. 

     

    R-11
      unfaced batt insulation for interior partition walls (9'-0") where required
      by
      code. 

     

    R-11
      unfaced batt insulation in all concrete furred walls and restroom
      walls.

     

    R-19
      unfaced batt insulation laid on all office ceilings. 

     

    R-19
      batt
      insulation installed under the roof deck throughout warehouse. 

     

    CABINETRY
      

     

    Not
      standard in lessee improvements. 

     

    ROOFING
      

     

    The
      contractor shall use the building shell-roofing contractor, Western Roofing,
      to
      patch all roof penetrations. Hot mop-in the new penetrations such that the
      existing roof warranty is maintained. Pipe and conduit penetrations at the
      roof
      shall receive lead pipe flashing with screw clamp and elastomeric sealant and
      shall also be hot asphalt patched with 4-ply roofing. 

     

    DOORS.
      FRAMES & HARDWARE 

     

    All
      doors
      3' x 7' solid core Legacy Oak doors, in Timely frames (black or brown) for
      all
      offices and restrooms. 

     

    On
      all
      doors leading from the office to the warehouse 3' x 7' solid core Legacy Oak
      door(s) with a Norton closer, smoke seal and threshold. Door will be provided
      with a Schlage "AL" series lever style Rhodes lockset. Doors shall include
      necessary fire rating label if required by code. 

     

    Schlage
      "AL" series lever style Rhodes passage lock on all office doors. 

     

    Privacy
      locksets provided for the restrooms. 

     

    Entry
      and
      warehouse doors are treated as existing. 

     

    All
      hardware is to be brushed chrome. 

     

    Includes
      handicap ADA restroom signs. 

     

    Interior
      windows, of any kind, are not part of the standard lessee improvement.

     

    METAL
      STUDS/DRYWALL/ACT 

     

    Interior
      partitions shall penetrate through ceiling grid. The finish height of the
      interior walls (and ceiling) in office areas are 9'-0" above finish floor.
      All
      office walls are 3 5/8" - 25 gauge metal studs at 24" on center. 

     

    Plumbing
      walls are a minimum 6"- 20 gauge metal studs spaced at 24" on center with 5/8"
      type "X" moisture resistant green-board. 

     

    One
      (1)
      new demising wall to be constructed using 6" - 18 gauge metal studs at 24"
      on
      center when wall is less than 28'-0" high. If wall exceeds 28-0" high, UBC
      Code
      and/or steel stud manufacture will require decreasing stud spacing to 16" on
      center. It is the contractor's responsibility to verify all framing
      requirements. All demising walls shall be constructed using deep leg deflection
      track. Demising wall shall be constructed as rated firewalls if required by
      code. All penetrations through demising walls including: pipes, conduit, ducts,
      etc. shall be properly sealed. 

     

    All
      office
      walls are 3 5/8" - 25 gauge metal studs at 16" on center. 

     

    All
      drywall is 5/8" type "X" gypsum board.

     

    Light
      "orange peel" or "knockdown" texture on all interior office/restroom walls
      other
      side of walls to be tape finished only. Warehouse side of walls to be tape
      finished only. 

     

    Standard
      15/16" white USG ceiling grid with 2' x 4' USG #2742 Radar Illusion Two tiles.
      Standard ceiling height is 9' -0" above finish floor. 

     

    FLOORING
      

     

    Carpet
      shall be Designweave, Shaw or approved equal loop graphic, solution dyed 100%
      nylon 26 OZ. Carpet shall be installed using the glued-direct method
      installation method. Color to be selected from manufactures standard colors
      U.N.O. 

     

    Provide
      12”x12” Armstrong or equal VCT in all restrooms. 

    Provide
      12”x12” Armstrong or equal VCT in all break areas.(if applicable-not part of the
      standard improvements) 

    Color
      to
      be selected from manufactures standard colors. 

     

    Provide
      6”
Johnsonite or equal vinyl wall base in all restrooms and break areas and 4”
Johnsonite or equal vinyl base in all carpeted areas. Color to be selected
      from
      manufactures standard colors. 

     

    No
      finish
      flooring in warehouse area. 

     

    PAINT
      

     

    Seal
      interior drywall with PVA sealer prior to texture. 

     

    Finish
      coat to cover all interior office walls with "eggshell" enamel paint.

     

    Finish
      coat to cover all interior restroom walls & ceilings with "semi-gloss"
      enamel paint. 

     

    No
      finish
      painting in the warehouse 

    

      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

    

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    FIBERGLASS
      REINFORCED PANELS (FRP WAINSCOT)

     

    FRP
      includes from corner to corner on all four walls in restrooms. Panels are 4’-0”
in height; color is white. 

     

    SPECIALTIES
      

    

      
        	
                TOILET
                  ACCESSORIES:

              	
                Paper Towel
                  Dispenser:
                  Bobrick B-369 

              
	 	
                Toilet
                  Paper Holder:
                  Bobrick B-686 double toilet paper holder. 

              
	 	
                Grab
                  Bars:
                  Bobrick No. B6806-36 and B6806-42 stainless steel per
                  ADA.

              
	 	
                Mirror:
                  Furnish and install 18" x 36" mirror over sink.

              

      

    

     

    SIGNAGE:
      Furnish and install all handicap and exit signage as required by code.

     

    PLUMBING
      

     

    GENERAL:
      All plumbing piping, equipment, etc. shall be installed as close to the
      structure as possible to allow for the highest possible ceiling location.
      Wherever possible, such items shall be installed above the bottom chord of
      trusses, bar joists, etc.

     

    Provide
      complete design-build system, with engineered plans and permits. The
      design-build plumbing contractor shall furnish and install a complete and
      operative plumbing system to meet all local and state codes. Provide plumbing
      plans for Lessor’s review. 

     

    Sewer
      Lines: Sewer, soil and waste lines within the building below the finished floor
      elevation shall be schedule 40 ABS plastic or schedule 40 PVC plastic pipe.
      

     

    Evaporative
      cooler water to evaporative cooler(s) unit connected through roof, and includes
      shut off valve and drain 

     

    Provide
      for one (1) 6 gallon hot water heater located in the warehouse. Under-sink
      instantaneous, tank-less water heaters may be substituted. 

    Provide
      for one (1) 12" x 12" floor sink for PRV valve, drain downs and condensate,
      if
      required by code. 

     

    PIPE
      MATERIAL: All pipe materials shall be subject to the requirements of the City
      and/or governing body. All domestic water, condensate and smitty pan drain
      lines
      must be copper. 

     

    PLUMBING
      FIXTURES AND TRIM: 

    Wall-hung
      lavatory:
      American
      Standard, "Lucerne", model 0355.012, white, wall mounted lavatory or equal
      with
      a Delta Model 523 WF HDF single lever type faucet assembly with a grid strainer
      and bright chrome finish. Furnish and install a Handy-Shield Drain Cover #3011
      White by Plumberex Specialty Products under each lavatory. 

    Water
      closet:
      ADA
      Compliant, tank type gravity flush, elongated bowl, open front seat less cover,
      with trip lever on access side. 

    Water
      heater:
      If a
      water heater is provided instead of the under-sink instantaneous tank-less
      water
      heater as referenced above, the water heater shall be A.O. Smith, State or
      approved equal sized to meet the demand. It shall be located on the warehouse
      floor in a smitty pan draining into a hub drain with a trap primer. The location
      shall be as located by the architect or
      approved
      by the Lessor. All plumbing connections shall be made with dielectric unions.
      

     

    CONDENSATE
      DRAINS: Furnish and install copper condensate drainage lines with proper venting
      for all HVAC equipment. The lines shall drain into the building sewage system.
      Condensation lines shall not drain over the roof or any other portion of the
      roof. The lines shall be no smaller than 3/4" diameter and shall be located
      under the roof unless prohibited by code. PVC condensate line may not be used.
      

     

    SHUT-OFF
      VALVE: Furnish and install a water line shut-off valve for the Restrooms in
      the
      toilet room wall, not above the ceiling, with an 8" x 8" stainless steel access
      panel. 

     

    MAIN
      WATER
      LINE: If a main domestic water line is not existing above the Lessee space,
      furnish and install a 2" diameter copper water line at the roof installed above
      the bottom cord of the trusses, properly braced to avoid movement. At each
      future Lessee space that the line crosses, install a 2" "T" with 2" gate valve
      (one valve per storefront door). Extend the water line through the Lessee
      demising wall into the "down stream" adjacent Lessee space with a 2" diameter
      gate valve. Furnish and install a 2" pressure reducing valve with an access
      panel at the water service entrance. 

     

    CLEAN-OUTS:
      Furnish and install a brass floor clean-out cover at the proper finished
      elevation as required. If the clean-out is in the warehouse area, furnish and
      install a traffic rated cover. 

     

    HVAC
      

     

    GENERAL:
      All HVAC ducting, conduit, equipment, etc. shall be installed as close to the
      structure as possible to allow for the highest possible ceiling location.
      Wherever possible, such items shall be installed above the bottom chord of
      trusses, bar joists, etc. 

     

    DESIGN
      BUILD: Unless engineered HVAC system drawings are included in the bid documents,
      the HVAC work shall be performed on a design-build basis. 

     

    The
      design-build HVAC contractor shall furnish and install a complete and operative
      HVAC system to meet all local and state codes. 

     

    PLANS:
      Provide HVAC plans for Lessor’s review. 

     

    Provide
      complete design build system, includes plans and permits. 

     

    Provide
      for evaporative coolers in the warehouse, size and number to be determined
      by
      Lessor based on the warehouse size. 

     

    Provide
      for duct detectors and remote enunciators as required by code. 

     

    Exhaust
      fans for restrooms. 

     

    WARRANTY
      AND SERVICE: All work shall include a one year parts and labor warranty from
      the
      date of project completion. 

     

    DESIGN
      TEMPERATURES: The HVAC system shall maintain 75 degrees indoors, on a 113 degree
      outdoor day or local ASHRAE standards and code requirements, whichever is more
      stringent. 

     

    UNITS:
      The
      HVAC units shall be electric, bottom discharge, as manufactured by Carrier,
      Trane, York, or equal. Units shall be installed on a leveled, manufactured
      curb.
      All rooftop equipment shall be seismically fastened to the structure. Side
      discharge units may not be used. Commercial grade heat pumps by Carrier (model
      TJQ), or Trane (model WCD) only may only be used. When heat pumps are used,
      they
      must be installed with auxiliary strip heaters and single point wiring kits.
      Furnish and install economizers on all units larger than five tons and whenever
      required by the energy code. 

     

    UNIT
      LOCATIONS: HVAC and evaporative cooler units (when used) shall be located on
      roof, adjacent to a glu-lam beam or girder, at or near a structural column,
      set
      back from building edge to hide them from sight. Framing for roof penetrations
      and supports for all roof-top equipment must be reviewed, approved and stamped
      by a structural engineer. Low profile units and curbs shall be utilized if
      the
      height at top of the unit will exceed the parapet height. In such cases, the
      unit shall be located as low on the roof as
      feasible.

     

    EVAPORATIVE
      COOLER: Evaporative coolers when specified as a customer upgrade shall provide
      a
      minimum of four air
      changes per hour U.O.N.
      The
      coolers shall be United Metal Products "Slimline" units or approved equals.
      Provide adequate relief venting to allow all doors within the Lessee space
      to
      close properly. The plenums, water supply lines and drain lines shall not
      encroach into the building's clear space U.O.N. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

    

     

    CURBS/SLEEPERS:
      All mechanical units (HVAC units, evaporative coolers, and relief vents) shall
      be located on roof and shall be installed with a self flashing, leveled, factory
      curb. Furnish and install 4 inch leg cant strips around all curbs. Absolutely
      no
      wood or metal sleepers may be used without Lessor's written permission.

     

    CONTROLS:
      The HVAC system shall be connected to a 7-day skip-a-day time clock and include
      a bypass timer at each thermostat. All thermostats shall be mounted at 48"
      A.F.F. and shall have an automatic change-over feature and a locking cover.
      

     

    EXHAUST
      FANS: Furnish and install an exhaust fan in each toilet room and shower room
      (if
      applicable). Install a supply air grille in the toilet rooms or a transfer
      grille from the toilet/shower room ceiling to the adjacent conditioned space.
      

     

    DUCTING:
      All ducting may be flexible, pre-insulated or galvanized spiral, insulated
      with
      1-1/2" wrap and vapor barrier or duct board. Any exposed duct in a conditioned
      warehouse area must be galvanized spiral sheet metal. Final connections to
      the
      registers shall be made with a minimum 5' soft flex duct for sound attenuation.
      All plenums shall be fabricated from insulated galvanized sheet metal of
      appropriate gauge for low pressure use. Plenums shall extend from the unit
      to
      the level of the horizontal branches. No ducting or plenum drops may be
      installed over warehouse space. Spray paint flat black any ducting visible
      through the grille. If the project is a remodel of an existing system, all
      abandoned ducting shall be removed. 

     

    FITTINGS:
      All wye branch fittings shall have volume dampers with locking quadrant in
      main
      and branch ducts. The dampers shall be tagged for easy recognition.

     

    GRILLES:
      All conditioned areas shall have a supply register and a ducted return register.
      Transfer grills are not permitted. Supply and return air registers shall be
      white baked enamel 2'x 2' with a perforated face, flush mounted. Supply air
      registers shall have a 4-way blow. 

     

    FILTERS:
      Filters shall be located at the unit not at the return register 

     

    FIRE
      SPRINKLERS 

     

    GENERAL:
      All fire sprinkler piping, conduit, equipment, etc. shall be installed as close
      to the structure as possible to allow for the highest possible ceiling location.
      Wherever possible, such items shall be installed above the bottom chord of
      trusses, bar joists, etc. 

     

    DESIGN
      BUILD: The fire protection work shall be performed on a design-build basis.
      The
      design-build fire protection contractor shall furnish and install all
      modifications to the existing fire sprinkler system to meet all applicable
      local
      and state fire code requirements. Sprinkler heads shall be dropped into all
      suspended ceiling areas. Upgrade of existing system shall conform to class
      IV
      occupancy 

     

    Provide
      semi-recessed chrome pendant heads with 280-degree sprinkler heads, for all
      office areas (one sprinkler per 100 square feet, or what is required by code).
      

     

    Provide
      two-piece canopy chrome head for the restrooms 

     

    PIPE
      MATERIAL: All fire sprinkler piping shall be standard schedule 40 pipe
      U.O.N 

     

    SPRINKLER
      HEADS: The fire sprinkler heads in areas with ceilings shall be chrome,
      semi-recessed, with white escutcheons. When "second look" acoustical ceiling
      tiles are used, sprinkler heads shall be centered on the half tile.

     

    HYDRAULIC
      TESTING: The contractor shall include the cost of any required hydraulic testing
      of the fire sprinkler system. 

     

    FIRE
      EXTINGUISHERS: Fire extinguishers shall be furnished and installed per city
      fire
      code and may be wall hung. 

     

    ELECTRICAL
      

     

    GENERAL:
      All electrical piping, equipment, etc. shall be installed as close to the
      structure as possible to allow for the highest possible ceiling location.
      Wherever possible, such items shall be installed above the bottom chord of
      trusses, bar joists, etc. 

     

    DESIGN
      BUILD: Unless engineered electrical system drawings are included in the bid
      documents, the electrical work shall be performed on a design-build basis.
      The
      design-build electrical contractor shall furnish and install a complete and
      operative electrical system to meet all local and state codes. 

     

    PLANS:
      Provide electrical plans for Lessor's review 

     

    ENERGY
      CALCS: Provide energy compliance code lighting calculations if required

     

    METER
      SECTION: Furnish and install an electrical meter section "bussed for future"
      sections if not existing. 

     

    PANELS
      AND
      TRANSFORMERS: The locations of the 120/208 volt electrical panel and the
      transformer shall be approved by the Lessor. Typically these should be located
      on the office/warehouse wall adjacent to the toilet rooms. The electrical panels
      and transformer shall be sized to allow for a 25% increase in the number of
      circuits in the future. 

     

    OFFICE
      LIGHTING: Furnish and install 2'x4' three lamp lay-in fluorescent light fixtures
      with standard acrylic lens and T-12 low watt type lamps U.O.N., 75 foot candles
      minimum at 3' A.F.F. or as permitted by code but no less than two (2) fixtures
      per office. Wire one (1) light fixture near the exit doors to provide 24 hour
      lighting. 

     

    TOILET
      ROOM LIGHTING: Furnish and install 1'x4' surface mounted fluorescent light
      fixtures with a wrap around acrylic lenses. In toilet rooms with lavatory tops,
      install a 2'-0" wide light soffit with an egg- crate lens at 7'-0" A.F.F. above
      the lavatory top in addition to the wrap around fixtures. 

     

    WAREHOUSE
      LIGHTING: Wire a minimum of one (1) light fixture near each of the exit doors
      and office/warehouse doors to provide 24 hour lighting. All fixtures shall
      be
      hung on chain a minimum of 8" above the bottom chord of the joists U.O.N.
      Whenever the chains are hung from eye hooks, the hooks must be installed in
      the
      sides of the structural member, not the bottom; all fixtures shall be installed
      with 6 feet of flex conduit 

     

    OUTLET
      BOXES: All outlet boxes for wall switches, wall receptacles, telephone, etc.
      shall be galvanized steel or cast type boxes. 

     

    RECEPTACLES:
      Furnish and install four (4) 110 volt duplex receptacles and one (I) telephone
      "ring and string" in each office. 

     

    GFI
      RECEPTACLES: Provide one GFI electrical outlet in each toilet room. Install
      GFI
      receptacles wherever required by code. 

     

    WAREHOUSE
      SWITCHING: The warehouse lighting must be controlled from light switches at
      the
      office/warehouse door or other Lessor approved location, not at the electrical
      panel. 

     

    ELECTRICAL
      CONDUIT/CONDUCTOR MATERIAL: All conduit shall be EMT. All conductors must be
      copper. 

     

    CONDUIT
      INSTALLATION: All conduits in areas without ceilings shall be installed at
      or
      above the bottoms of the trusses or beams. All conduits shall be run at 90
      degrees or parallel to structural members, walls floors and ceilings. No conduit
      may be installed below the slab or on top of the roof without the Lessor's
      written permission. 

     

    TELEPHONE
      CONDUIT: Furnish and install a 2" diameter metal conduit for phone system from
      the building telephone service entrance to a telephone board within the Lessee
      space. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

    

     

    TELEPHONE
      BOARD: Furnish and install one APA C-D plugged (paint grade) fire retardant
      plywood telephone backboard with dedicated 110 volt duplex outlet for mounting
      Lessee’s electrical or telephone equipment. 

     

    TRIM
      COLOR: All light switches, outlets and electrical trim shall be white

     

    Provide
      complete design build electrical system, including plans and permits

     

    Provide
      standard 2 x 4 lay-ins for the ceiling. 

     

    Provide
      switches for evaporative coolers (include separate switching for the pumps
      and
      motors). 

     

    Provide
      for switching in all offices. 

     

    Provide
      for WP roof top receptacles, by code 

     

    Show
      window receptacles if required by code.
      

     

    One
      (1)
      night light circuit for the offices 

     

    Emergency
      and exit lighting as required by code. 

     

    Provide
      for a standard receptacle layout. 

     

    Provide
      a
      standard telephone/data layout. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      “E” 

     

    RULES
      AND REGULATIONS

    Pinnacle
      Park Business Center - Phase I 

     

    The
      following items will be strictly enforced by the management for the referenced
      Premises on a “fine” basis, if violated. The fines will be assessed at One
      Hundred Dollars and 00/100 ($100.00) per day, if Lessee is found in violation,
      with no notice required, and if violations are not corrected, it will be
      considered a material Default under the Lease and Lessor reserves all rights
      under said Lease, in addition to the $100 per day penalty, related to a Lessee
      Default. The Lessor reserves the right to add or remove any additional Rule
      and
      Regulations as it deems necessary. 

     

    General
      Rules 

     

    1.
      Lessee
      shall not suffer or permit the obstruction of any Common Areas, including
      driveways and walkways. 

     

    2.
      Lessor
      reserves the right to refuse access to any persons which Lessor, in good faith,
      judges to be a threat to the safety, reputation, or property of the Project
      and
      its occupants. 

     

    3.
      Lessee
      shall perform all daily work activities with the roll-up door(s) closed to
      abate
      any excessive noise pollution. 

     

    4.
      Lessee
      shall not make or permit any noise or odors that annoy or interfere with other
      Lessees or persons having business within the Project. 

     

    5.
      Lessee
      shall not keep animals or birds within the Project and shall not bring bicycles,
      motorcycles or other vehicles into areas not designated as authorized for same.
      

     

    6.
      Lessee
      shall not store any materials or debris outside of the unit at any time.

     

    7.
      Lessee
      shall not make, suffer or permit litter except in appropriate receptacles for
      that purpose. 

     

    8.
      Lessee
      shall have signage rights upon Lessor’s approval, which shall not be
      unreasonably withheld or delayed. Lessee shall be responsible for all costs
      related to Lessee Signage. 

     

    9.
      Lessor
      will furnish Lessee, free of charge, with two keys to each door in the Premises.
      Lessor may charge a reasonable fee for any additional keys. Lessee shall be
      responsible for changing any lock or installing new or additional locks or
      any
      bolts on any door of the Premises. 

     

    10.
      Lessee
      shall not deface the walls, partitions or other surfaces of the Premises or
      Project. 

     

    11.
      Lessee
      shall not employ any service or contractor for services or work to be performed
      in the Building, except as reasonably approved in advance by Lessor.

     

    12.
      Lessee
      shall return all keys at the termination of its tenancy and shall be responsible
      for the cost of replacing any keys that are lost. 

     

    13.
      Lessee
      shall not use or keep in the Premises or the Building any kerosene, gasoline,
      or
      flammable or combustible fluid or material, or use any method of heating or
      air
      conditioning other than as are typically found in projects of similar quality
      in
      the Phoenix
      area.

     

    14.
      The
      Premises shall not be used for Commercial lodging, manufacturing, cooking,
      or
      food preparation. 

     

    15.
      Lessee
      shall comply with all safety, fire protection and evacuation regulations
      established by Lessor or any applicable governmental agency. 

     

    16.
      The
      wash room partitions, mirrors, wash basins and other plumbing fixtures shall
      not
      be used for any purpose other than those for which they were constructed, and
      no
      sweeping, rubbish, rags or other substances shall be thrown therein. All damage
      resulting from any misuse of the fixtures shall be borne by the Lessee who,
      or
      whose servants, employees, agents, visitors, or licensees, shall have caused
      the
      same. 

     

    17.
      Lessee
      shall not disturb, solicit, or canvass any occupant of the Building and shall
      cooperate to prevent same. 

     

    18.
      Without the written consent of Lessor, Lessee shall not use the name of the
      Building in connection with or in promoting or advertising the business of
      Lessee except as Lessee’s address. 

     

    19.
      Lessee
      assumes all risk from theft or vandalism and agrees to keep its Premises locked
      as may be required. 

     

    20.
      Lessee
      shall not suffer or permit anything in or around the Premises or Building that
      causes excessive vibration in any part of the Project. 

     

    21.
      Lessee
      shall be responsible for any damage to the Project and/or Premises arising
      from
      such activity as moving of furniture, freight and equipment. 

     

    22.
      No
      window tinting, window coverings, shades or awnings shall be installed by Lessee
      without prior written consent of Lessor. 

     

    23.
      Lessee
      shall not suffer or permit smoking or carrying of lighted cigars or cigarettes
      in areas reasonably designated by Lessor or by applicable governmental agencies
      as non-smoking areas. 

     

    24.
      Lessee
      shall not install, maintain, or operate any vending machines upon the Premises
      without Lessor’s written consent. 

     

    25.
      If
      Lessee requires burglar alarm or similar services, it shall first obtain, and
      comply with, Lessor’s instructions in their installation. 

     

    26.
      Lessor
      reserves the right to waive any one of these rules and regulations and/or to
      any
      particular Lessee, and any such waiver shall not constitute a waiver of any
      other rule or regulation or any subsequent application thereof to such Lessee.
      

     

    27.
      Lessor
      reserves the right to make such other reasonable rules and regulations as it
      may
      from time to time deem necessary for the appropriate operation and safety of
      the
      Project and its occupants. Lessee agrees to abide by these and such other rules
      and regulations. 

     

    28.
      Trash
      dumpsters, if provided by Lessor as part of the Common Area Maintenance, are
      to
      be used for normal office refuse only. No Equipment, production materials,
      or
      any other discards are to be placed in the dumpsters or dumpster enclosures.
      Any
      cardboard boxes shall be cut up and/or flattened and placed in the dumpster
      utilizing as little space as possible. If the dumpster is full, waste will
      be
      stored in Lessee’s lease space until the dumpster is emptied. In the event
      Lessee’s disposal needs exceed normal office refuse, Lessee will be required to
      furnish their own dumpster at Lessee’s expense. Said dumpster shall be stored in
      Lessee’s lease space at all times except on pick-up days. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

     

    PARKING
      RULES 

     

    1.
      Users
      of the parking area will obey all posted signs and park only in the areas
      designated for vehicle parking. 

     

    2.
      The
      maintenance, washing, waxing or cleaning of vehicles in the parking area or
      common area is prohibited. 

     

    3.
      Lessee
      shall be responsible for seeing that all of its employees, agents and invitees
      comply with the applicable parking rules, regulations, laws and
      agreements.

     

    4.
      Parking
      areas shall be used only for parking by vehicles no longer than full size,
      passenger automobiles herein called “Permitted Size Vehicles”. Vehicles other
      than Permitted Size Vehicles are herein referred to as “Oversized Vehicles”. No
      unauthorized parking of recreational vehicles, motor homes, boats and/or
      trailers, is permitted within the Project. 

     

    5.
      Lessee’s service vehicles, if any, shall be parked within Lessee’s warehouse
or
      Lessee’s loading areas
      at night.

     

    6.
      Unless
      otherwise instructed, every person using the parking area is required to park
      and lock his own vehicle. Lessor will not be responsible for any damage to
      vehicles, injury to persons or loss of property, all of which risks are assumed
      by the party using the parking area. 

     

    7.
      Lessor
      reserves the right to modify these rules and/or adopt such other reasonable
      and
      non-discriminatory rules and regulations as it may deem necessary for the proper
      operation of the parking area. 

    
      

        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

    

     

    Exhibit
      “F” 

     

    SIGNAGE
      CRITERIA 

     

    LESSEE
      APPROVAL PROCEDURE: 

     

    All
      Lessee
      signs installed or displayed on the premises of Pinnacle Park Business Center
      must have written approval by the Lessor. The aesthetic characteristics of
      the
      signs (e.g. placement, size, proportion, color, texture, method of fabrication,
      location of transformers, installation method and graphics) are subject to
      the
      discretionary approval of the Lessor, within the context of the sign criteria.
      Within thirty (30) days of receipt of Lessor’s plans and specifications, Lessee
      must submit two (2) color sets of professionally executed drawings which meet
      the submittal standards. 

     

    DRAWINGS
      MUST: 

     

    
      
        
          	1.	
                  Depict
                    sign on building elevation showing position on fascia.
                    

                

        

      

    

    
       

        
          	2.	
                  Include
                    all specifications for installation, size, color, materials and
                    illumination details. These drawings must be submitted to the
                    Lessor for
                    review and written approval. After approval by Lessor, Lessee
                    is
                    responsible for submitting the drawings to the preferred sign
                    contractor
                    and the City of Phoenix Building Department and obtaining the
                    required
                    approval(s) and permits.

                

        

      

    

     

    This
      criteria has been designed to give Lessee a degree of flexibility and allowing
      for maximum creativity in sign design. Conformance to the criteria will be
      strictly enforced. In the interest of the center, any installed, non-conforming
      or unapproved signs shall be brought into conformance at the expense of the
      Lessee. 

     

    
      
        	
                SAMPLE
                  DRAWING ONLY:

              	 
	
                Drawing
                  illustrates sign band area

                and
                  sign placement location of typical 

                store
                  front. Signage to be no greater 

                than
                  60% of leased building frontage 

                Signage
                  must be centered above main 

                entrance.
                  

              	

      

    

     

    INDIVIDUAL
      LESSEE SIGN & I.D. REQUIREMENTS: 

     

    WALL
      SIGNAGE:
      This is a
      sign displayed upon or against the wall or parapet of a structure where the
      exposed face of the sign is in the plane parallel to the plane of the wall
      and
      extends not more than 6” from the face of the wall. 

    
    

    
      
        
          	1.	
                  Lessee
                    sign shall include only its business name and established logo
                    symbol (if
                    applicable). Service descriptions and/or product names are not
                    allowed.
                    

                

        

      

    

    
       

        
          	2.	
                  Maintenance
                    of each sign is the responsibility of each individual Lessee.
                    Letter
                    forms, letter faces, burned out lamps or penetration holes which
                    require
                    repair will be replaced or repaired within thirty (30) days of
                    damage. If
                    signage is not fixed within the thirty (30) day period, Lessor
                    may repair
                    the sign at the expense of the Lessee.

                

        

      

    

    
       

        
          	3.	
                  Signs
                    are not to contain labels or manufacturer’s advertising, with the
                    exception of code requirements.

                

        

      

    

    
       

        
          	4.	
                  Roof
                    mounted signs are not permitted.

                

        

      

    

    
       

        
          	5.	
                  No
                    sign will be painted directly on the wall surface of any portion
                    of the
                    building. 

                

        

      

    

    
       

        
          	6.	
                  Refer
                    to the section “Fabrication, Installation & Design Standards” for
                    additional information.

                

        

      

    

    
       

        
          	7.	
                  Lessees
                    with nationally or regionally recognized logo graphics may use
                    their
                    business identity graphics and color scheme subject to approval
                    of Lessor.
                    

                

        

      

    

    
       

        
          	8.	
                  Sale
                    signs, special announcements, posters, banners, trailer signs,
                    etc., are
                    not permitted. 

                

        

      

    

    
       

        
          	9.	
                  Signs
                    are to be positioned so as to appear visually horizontally centered,
                    within the allowed sign band area above their leased area.
                    

                

        

      

    

    
       

        
          	10.	
                  No
                    animation of signs will be permitted.

                

        

      

    

    
       

        
          	11.	
                  Lessee’s
                    storefront sign shall be installed and complete within thirty
                    (30) days of
                    Lessee opening for business.

                

        

      

    

    
       

        
          	12.	
                  All
                    signs shall be constructed, installed and maintained at Lessee’s expense.
                    

                

        

      

    

    
       

        
          	13.	
                  Storefront
                    sign letters will remain the property of Lessee. Lessee shall
                    remove their
                    sign from storefront and patch and paint holes and scarring of
                    fascia or
                    wall to match surrounding areas upon expiration of their occupancy
                    at
                    their expense, including the painting of the band(s) between
                    architectural
                    reveals. 

                

        

      

    

     

    FABRICATION,
      INSTALLATION & DESIGN STANDARDS:
      

     

    GENERAL
      REQUIREMENTS: 

    
    

    
      
        
          	1.	
                  The
                    width of the Lessee signs shall not exceed the width of the Sign
                    Band (as
                    delineated on the exterior elevations). Lettering shall be centered
                    on the
                    demised premises directly above lessee’s main entrance, unless otherwise
                    approved by the Lessor.

                

        

      

    

    
       

        
          	2.	
                  Signage
                    installation is to be vertically centered over the continuous
3⁄4” x 3” wide
                    reveal running horizontally through the sign band area. Each
                    individual
                    Lessee signage is to be further centered horizontally as per
                    Lessors
                    approval. A minimum 5’ buffer must exist between signage.
                    

                

        

      

    

    
       

        
          	3.	
                  Lessee
                    shall be allowed a minimum of 18” and a maximum of 36” letter height
                    and/or logo height. Maximum height of single line or stacked
                    copy shall
                    not exceed 36”. 

                

        

      

    

    
       

        
          	4.	
                  All
                    signs shall consist of individual letters. No sign cabinets shall
                    be
                    permitted. No script is permitted on the signs unless it is part
                    of an
                    established trademark of the Lessee which is used at other locations.
                    

                

        

      

    

    
       

        
          	5.	
                  Lessee
                    shall be allowed two (2) signs per leased area. One (1) sign
                    on the front
                    elevation and one (1) on the rear elevation.

                

        

      

    

    
       

        
          	6.	
                  Maximum
                    length of signage shall not exceed the width of sign band area.
                    In the
                    event Lessee has leased multiple bays the sign must be centered
                    above
                    lessee’s main entrance only.

                

        

      

    

    
       

        
          	7.	
                  If
                    an accompanying logo/symbol or larger leading capital letter
                    is used on
                    Lessees sign, it must not exceed 36”.

                

        

      

    

    
       

        
          	8.	
                  All
                    penetrations of the exterior fascia are to be sealed watertight,
                    then
                    painted to match the existing fascia color.

                

        

      

    

    
       

        
          	9.	
                  Lessee
                    and/or Lessee sign contractor shall not, in the course of sign
                    installation or removal, damage any of the buildings exterior
                    or structure
                    and if damage occurs Lessee will be responsible for the cost
                    of repair.
                    Signage installation is to be vertically centered over the continuous
3⁄4” x
                    3” wide reveal running horizontally through the sign band area.
                    Each
                    individual Lessee signage is to be further centered horizontally
                    as per
                    Lessors approval. A minimum 5’ buffer must exist between signage.
                    

                

        

      

    

    
       

        
          	10.	
                  Lessee
                    shall be allowed a maximum letter and logo height of 36”. Maximum height
                    of single line or stacked copy shall not exceed 36”.
                    

                

        

      

    

     

    ILLUMINATED
      SIGNS: 

     

    INDIVIDUAL
      LESSEE SIZE & PLACEMENT:
      

    

      
        	
                  ·

              	
                Letter
                  Type:

              	
                Reverse
                  Pan Channel individual letters fabricated of aluminum with 5” deep
                  returns. 

              
	
                  ·

              	
                Color:

              	
                Based
                  on Lessor approval. 

              

      

    

     

    
      
        
          	
                  ___________

                	 	
                  ___________

                
	
                  ___________

                	 	
                  ___________

                
	
                  Initials

                	 	
                  Initials

                
	 	 	 
	
                  ©
                    1999 - American Industrial Real Estate
                    Association

                	
                  FORM
                    MTN-2-

                
	
                  2/99E

                	 	 

        

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

    

     

    

      
        	
                ·

              	
                Installation:

              	
                Flush
                  or stand-off mounted to building fascia centered in tenants sign
                  band area
                  with minimum 5’ buffer between signage. 

              
	
                ·

              	
                Logo
                  Size:

              	
                36”
                  maximum & 18” minimum

              
	
                ·

              	
                Letter
                  Height:

              	
                36”
                  maximum & 18” minimum

              
	
                ·

              	
                Letter
                  Style:

              	
                Based
                  on Lessor approval

              
	
                ·

              	
                Illumination:

              	
                30
                  m.a. neon internally illuminated.

              
	
                ·

              	
                Signage
                  Area:

              	
                60%
                  of leased building frontage, centered horizontally within sign
                  band area.
                  In the event Lessee has leased multiple bays the sign must be centered
                  above lessee’s main entrance only.

              
	
                ·

              	
                Approvals:

              	
                All
                  signage is to be approved by the Lessor in writing prior to manufacturing.
                  All signage is to be approved by the City of Phoenix Building Department.
                  

              

      

    

     

    The
      following standards further specify the design and production requirements
      for
      Lessee storefront signs (illuminated only). 

    
    

    
      
        
          	1.	
                  Illuminated
                    Lessee identification signs must be fabricated as individually
                    mounted
                    illuminated channel letters.

                

        

      

    

    
       

        
          	2.	
                  All
                    Lessee signs are to be illuminated connecting to assigned J-boxes
                    which
                    must be controlled by a dedicated time clock and have a disconnect
                    switch
                    within visual proximity to the sign.

                

        

      

    

    
       

        
          	3.	
                  In
                    no case will there be any exposed electrical raceways, conduit,
                    transformers, junction boxes, conductors, or crossovers. All
                    exposed
                    hardware will be finished in a manner consistent with quality
                    fabrication
                    practices. 

                

        

      

    

    
       

        
          	4.	
                  Pan
                    channel letter and logo forms are to be fabricated from minimum
                    24 gauge
                    sheet metal or .063 aluminum formed into a pan channel configuration
                    with
                    a five (5”) inch deep return. Each letter must have a minimum of (2) 1⁄4”
                    diameter holes for drainage. Insides of letters are to be painted
                    white.
                    Logo and letter faces are to be formed from 1/8” thick (minimum) acrylic
                    and be attached to a metal return with 3⁄4” wide trim cap. Internal
                    illumination to be 30 m.a. neon tubing, manufactured, labeled
                    and
                    installed in accordance with U/L (Underwriters Laboratory) standards.
                    

                

        

      

    

    
       

        
          	5.	
                  Reverse
                    channel letters shall be pinned 2” off building wall. Return depth shall
                    be no greater than 2 1⁄2”, all metal construction, with Lexan backs, on
                    posts (no edge clips) and no trim cap. Double tube neon shall
                    be used
                    where width of letter stroke exceeds 3”.

                

        

      

    

    
       

        
          	6.	
                  Open
                    channel letter depth shall not exceed 2 1⁄2”. All hardware, tube supports,
                    screw heads, double backs, boots and housings inside open channel
                    letters
                    shall be painted to match interior letter. Tubing shall be flush
                    with
                    front edges of open channel. Letter interior shall be painted
                    with a matte
                    finish colored similar to neon illumination color.
                    

                

        

      

    

     

    NON-ILLUMINATED
      SIGNS: 

     

    FABRICATION,
      INSTALLATION, AND DESIGN STANDARDS: 

     

    The
      following standards further specify the design and production requirements
      for
      Lessee storefront building type signs (non-illuminated only). 

    

      
        	
                  ·

              	
                Letter
                  Type :

              	
                Reverse
                  Pan Channel individual letters fabricated of aluminum with 3” deep returns
                  and/or 3⁄4” high density foam letters. 

              
	
                  ·

              	
                Color:

              	
                Based
                  on Lessor approval. 

              
	
                  ·

              	
                Installation:

              	
                Letters
                  mounted flush or stand-off to building fascia centered in tenants
                  sign
                  band area with minimum 5’ buffer between signage. 

              
	
                  ·

              	
                Logo
                  Size:

              	
                36”
                  maximum height & 18” minimum height. 

              
	
                  ·

              	
                Letter
                  Height:

              	
                36”
                  maximum height & 18” minimum height. 

              
	
                  ·

              	
                Letter
                  Style:

              	
                Based
                  on Lessor approval. 

              
	
                  ·

              	
                Illumination:

              	
                Non-illuminated.
                  

              
	
                  ·

              	
                Signage
                  Area: 

              	
                60%
                  of leased building frontage, centered horizontally within sign
                  band area.
                  In the event Lessee has leased multiple bays the sign must be centered
                  above lessee’s main entrance only.

              
	
                  ·

              	
                Approvals:

              	
                All
                  signage is to be approved by the Lessor in writing prior to manufacturing.
                  All signage is to be approved by the City of Phoenix Building & Zoning
                  Department.

              

      

    

     

    LESSEE
      SUITE NUMBER AND INFORMATION AREA 

    
    

    
      
        
          	1.	
                  Lessee
                    vinyl suite numbers to be provided by the Lessor.
                    

                

        

      

    

    
       

        
          	2.	
                  There
                    shall be no sandwich boards or freestanding signs permitted in
                    the common
                    areas including, but not limited to sidewalks, driveways, landscaping,
                    parking stalls and building aprons.

                

        

      

    

    
       

        
          	3.	
                  There
                    shall be no signs, banners, pennants, balloons or window painting
                    permitted on or in front of bay doors or any windows.
                    

                

        

      

    

    
       

        
          	4.	
                  Each
                    occupant is allowed one (1) information copy area at the entry
                    to its
                    store. The copy for this sign is limited to store name and pertinent
                    business information such as store hours, telephone numbers,
                    emergency
                    information or other business instruction. Maximum letter height
                    is one
                    inch (1”). 

                

        

      

    

    
       

        
          	5.	
                  Credit
                    card decals and similar types of information shall be limited
                    to a size of
                    3” x 5”. 

                

        

      

    

     

    
      
        	
                ___________

              	 	
                ___________

              
	
                ___________

              	 	
                ___________

              
	
                Initials

              	 	
                Initials

              
	 	 	 
	
                ©
                  1999 - American Industrial Real Estate
                  Association

              	
                FORM
                  MTN-2-

              
	
                2/99E

              	 	 

      

    

     

    
      
        
        

      

      
        28CONTRACT FOR JOINT VENTURE TIANJIN KIWA FEED CO., LTD.

                  CHAPTER 1  GENERAL

Article 1

In accordance with the "Law of the People's Republic of China on Chinese-foreign
Joint Ventures" and other applicable Chinese laws and regulations, Tianjin
Challenge Feed Co., Ltd. and Kiwa Bio-Tech Products Group Corporation, adhereing
to the principle of equality and mutual benefit and through friendly
consultations, agree jointly invest to set up a joint venture enterprise in Da
Meng Zhuang Town, Wuqing District, Tianjin, the People's Republic of China.

Article 2 Parties of the Joint Venture

Parties of this contract are as follows:
Tianjin Challenge Feed Co., Ltd. (hereinafter referred to as Party A),
registered with Wuqing District, Tianjin, China, and its legal address is at Da
Meng Zhuang Town, Wuqing District, Tianjin, China.

Legal representative:  Name: Li, Wenbin
                       Title: General Manager
                       Nationality: China

Kiwa Bio-Tech Products Group Corporation (hereinafter referred to as Party B).
Its legal address is at 415W.Foothill Blvd, Suite206, Claremomt.CA91711, USA.

Legal representative:  Name: Li, Wei
                       Title: Chairman of the Board
                       Nationality: China

Article 3

The name of the joint venture company is Tianjin Kiwa Feed Limited Liability
Company. The name in English language is Tianjin Kiwa Feed Co., Ltd. The legal
address of the joint venture company is at the West to Jing-jin Highway, Da Meng
Zhuang Town, Wuqing District, Tianjin, China.

Article 4

All activities of the joint venture company shall be governed by the laws,
decrees and pertinent rules and regulations of the People's Republic of China
and all legal activities and interests of the joint venture company shall be
protected by the laws and regulations of the People's Republic of China.

                                       1
<PAGE>

Article 5

The organization form of the joint venture company is a limited liability
company. Each Party to the joint venture company is liable to the joint venture
company within the limit of the capital subscribed by it. The profits, risks and
losses of the joint venture company shall be shared by the parties in proportion
to their contributions of the registered capital.

        CHAPTER 2 THE PURPOSE, SCOPE AND SCALE OF PRODUCTION AND BUSINESS

Article 6

The purpose of the parties to the joint venture is to raise economic results and
ensure satisfactory economic benefits for each investor by combining existing
technologies developed by Party A and advantage in capital of Party B.

Article 7

The productive and business scope of the joint venture company is to develop,
manufacture and market supportive and concentrated feeds.

Article 8

The production scales of the joint venture company are as follows: The annual
output of supportive and concentrated feeds may amount to 40,000 tons.

         CHAPTER 3 TOTAL AMOUNT OF INVESTMENT AND THE REGISTERED CAPITAL

Article 9

The total amount of investment and the registered capital of the joint venture
company are USD 850,000 and USD 600,000 respectively and other capital is raised
by the joint ventures.

Article 10

In the total investment, Party A shall pay USD 120,000, accounting for 20% of
the total and Party B shall pay USD 480,000, accounting for 80% of the total.

                                       2
<PAGE>

Article 11

Both Party A and Party B will contribute the following as their investment:

Party A: machines and equipments equivalent to USD 120,000
Party B: in cash in USD at a exchange rate that is announced by People's Bank of
         China when payment

Article 12

Both parties shall pay their investments within 6 months as from the issue of
the business license of the joint venture company. Overdue payment of the
investment constitutes breach of this contract. Party A shall provide Assets
Assessment Report.

Article 13

Upon the completion of the payment by both parties, the joint venture company
shall invite certified public accountants for verification of capital and
relevant reports, which will be distributed to the chairmen of the board of both
parties for signature on investment certificates.

Article 14

Transfer of partial or complete investment of either party shall be subject to
approval for its directorate and permission of the other party and the priority
in purchase of the transferred investment shall be given to the other party. The
transferor shall not make a transfer to the third party on preferential term and
condition.

Article 15

The total registered investment of the joint venture company shall not be
subjected to reduction. Any necessary change in the total amount and scale of
business shall be subject to approval by authorities having the jurisdiction.

Article 16

Any addition and transfer of the registered capital of the joint venture company
shall be subject to approval by its directorate and authorities having the
jurisdiction and shall be registered with administrations for industry and
commerce.

          CHAPTER 4 RESPONSIBILITIES OF EACH PARTY TO THE JOINT VENTURE

Article 17 Party A and Party B shall be respectively responsible for the
following matters:

                                       3
<PAGE>

Responsibilities of Party A:

1.    Handling of applications for approval, registration, business license and
      other matters concerning the establishment of the joint venture company
      from responsible authorities in China;
2.    Paying due investment on schedule in the joint venture company in
      accordance with Article 10, 11 and 12;
3.    Assisting the joint venture in recruiting Chinese management personnel,
      technical personnel, workers and other personnel needed;
4.    Assisting the joint venture company in purchasing raw materials, articles
      for office use, communication facilities etc.;
5.    Assisting foreign workers and staff in applying for the entry visa, work
      license and processing their traveling matters;
6.    Upon the signature of this contract, forming a marketing team and
      providing market training for them to ensure the continuation of existing
      marketing team and market network;
7.    Ensuring the integrity and operation of production line to be used in the
      joint venture company;
8.    Assisting the joint venture company in research and development and if
      necessary establishing a RD center
9.    Responsible for handling other matters entrusted by the joint venture
      company.

Responsibility of Party B:

1.    Paying due investment on schedule in the joint venture company in
      accordance with Article 10, 11 and 12;
2.    Assisting the joint venture company in purchasing machines, equipments,
      raw materials, articles for office use, means of transportation and
      communication facilities abroad;
3.    Responsible for providing information on international market and trend in
      product development;
4.    Responsible for handling other matters entrusted by the joint venture
      company.

                        CHAPTER 5 SITE, PLANT AND UTILITY

Article 18

Tianjin Challenge Feed Co., Ltd. shall provide site for the joint adventure
company. The service life of the site shall be the same with the term of the
joint venture and the site covers an area of 900 sq.m.

                                       4
<PAGE>

Article 19

The plant, warehouse and offices cover an area of 660 sq.m. And utility and
heating facilities shall be provided by Party A and the rent of the premise and
utility and heating facilities shall be in line with market price.

                        CHAPTER 6 PROVISION OF TECHNOLOGY

Article 20

Required production techniques shall be provided the joint venture company.

                CHAPTER 7 PURCHASE OF EQUIPMENT AND RAW MATERIAL

Article 21

The purchase of required production equipments, transportation means, articles
for office use, etc. shall be left to the joint venture company.

Article 22

The purchase of required raw material in or outside China shall be left to the
joint venture company.

Article 23

Party B is liable for provision of information on international raw materials
market to the joint venture.

                          CHAPTER 8 SELLING OF PRODUCTS

Article 24

40,000 ton mixed and supportive feeds each year shall be marketed in China. The
joint venture company is responsible for the marketing.

Article 25

In order to market in China, the joint venture company may set up sales branches
in China subject to the approval of the relative Chinese department.

Article 26

The joint venture may design the trademark of its products in accordance with
applicable law regarding trademark in China.

                                       5
<PAGE>

Article 27

The product of the joint venture company shall be subject to the inspection of
commodity inspection authorities in China.

Article 28

Party B is liable to provide the joint venture company with information on
price, development, specification and improvement in quality of the same
products in international market.

                              CHAPTER 9 DIRECTORATE

Article 29

The joint venture company shall be governed by directorate. The date of
registration of the joint venture company shall be the date of the establishment
of the directorate of the joint venture company.

Article 30

The directorate is composed by 5 directors, of which 2 shall be appointed by
Party A and 3 by Party B. The chairman of the board shall be appointed by Party
B and its vice-chairman by Party A. The term of office for the directors is four
years and their term of office may be renewed if continuously appointed by the
relevant party. The appointment shall be made in written and the directors shall
perform their obligations.

Article 31

The highest authority of the joint venture company shall be its directorate, the
jurisdiction of which is as follows:

1.    Review and approval for important reports submitted by the general
      manager, including annual plan and reports on business, finance and loan;
2.    Approval for annual financial statements, budget for revenues and
      expenditures and annual appropriation of profits;
3.    Approval for rules and regulations;
4.    Decision about establishment or withdrawal of subsidiary;
5.    Modification in the Articles of Association;
6.    Decision about addition or transfer of the registered capital;
7.    Decision about the termination of the joint venture company and the
      settlement at the end of the term;
8.    Decision about merging with other organizations;
9.    Decision about appointment and removal of general manger, financial
      director and vice general manger and other officers;
10.   Decision about other major issues.

                                       6
<PAGE>

Article 32

Unanimous approval shall be required before any decisions are made concerning
the following major issues.
1.    Modification in the Articles of Association;
2.    Addition or transfer of registered capital;
3.    Termination and dissolution of the joint venture company and
4.    Merging with other organizations.

For other matters, approval by a three fifth of directors shall be required.

Article 33

The chairman of the board is the legal representative of the joint venture
company. Should the chairman be unable to exercise his responsibilities for some
reasons, he shall authorize the vice-chairman or any other directors to
represent the joint venture company temporarily.

Articles 34

The directorate shall convene at least one meeting every year. The meeting shall
be called and presided over by the chairman of the board. The chairman may
convene an interim meeting based on a proposal made by three fifth of the total
number of directors. Minutes of the meetings shall be placed on file and on
responsible authorities.

                      CHAPTER 10 BUSINESS MANAGEMENT OFFICE

Article 35

The joint venture company shall establish a management office which shall be
responsible for its daily management. The management office shall have a general
manager, financial director and vice-general manager, whose terms of office are
four years and shall be appointed by the directorate.

Article 36

The responsibility of the general manager is to carry out the decisions of the
board meeting and organize and conduct the daily management of the joint venture
company. Assisting the general manger, the financial director shall be
responsible for overall financial management and directly report to the
directorate. The vice general managers shall assist the general manager in his
work. The business management department shall include financial, purchasing,
product management, production, marketing and personnel departments, which shall
execute the tasks assigned by general or deputy general managers and report to
general manager, financial director and vice-general manager.

                                       7
<PAGE>

Article 37

The general manger, deputy general manger and financial director shall not work
for other companies during their term of office and participate in competition
against the joint venture company.

Article 38

In case of graft or serious dereliction of duty on the part of the general
manager and deputy general mangers, the directorate shall have the power to
dismiss them at any time. If violation of criminal law, they will be held
criminally liable.

                             CHAPTER 11 PREPARATION

Article 39

During the period of preparation, a preparation office shall be set up under the
directorate. The preparation office shall consist of three persons, among which
the director will be from Party A and together with deputy director, will be
appointed by the directorate.

Article 40

The preparation office is responsible for working out the general schedule,
compiling the expenditure plans, controlling financial payments and final
accounts, drawing up managerial methods and keeping and piling documents,
drawings, files and materials, etc., during the preparation.

Article 41

After approved upon by both parties, the establishment, remuneration and the
expenses of the staff of the preparation office shall be covered in the
preparation budget.

Article 42

After having completed the preparation and finishing the turning over procedure,
the preparation office shall be dissolved upon the approval of the directorate.

                                       8
<PAGE>

                           CHAPTER 12 LABOR MANAGEMENT

Article 43

Labor contract covering the recruitment, employment, dismissal and resignation,
wages, labor insurance, welfare, rewards, penalty and other mattes concerning
the staff and workers of the joint venture company shall be drawn up between the
joint venture company and the Trade Union of the joint venture company as a
whole, or the individual employees in the joint venture company as a whole or
individual employees in accordance with applicable regulations on labor and
social security of the PRC and Tianjin.

Article 44

The appointment and wages of high-ranking administrative personnel in the joint
venture company shall be decided by the meeting of the directorate.

                             CHAPTER 13 TRADE UNION

Article 45

Employees of the joint venture company are entitled to form a trade union under
Trade Union Law of the People's Republic of China, the purpose of which is to
safeguard the right and interest of the employees, assist the joint venture
company in allotting bonus and welfare funds, organize the employees to learn
about policies and expertise and carry out entertainment and sports, educate
employees in observation of labor disciplines, perform the responsibilities and
meet the objects set down by the joint venture company.

Article 46

The joint venture company shall allocate an amount equal to 2 percent of the
total salary to the union and the union shall spend the amount in accordance
with Union's Fund Management Method of the People's Public of China.

                       CHAPTER 14 TAXES, FINANCE AND AUDIT

Article 47

The joint venture company shall pay taxes in accordance with the stipulations of
Chinese laws and other relative regulations.

Article 48

Staff members and workers of the joint venture company shall pay individual
income tax according to the Individual Income Tax Law of the People's Republic
of China.

                                       9
<PAGE>

Article 49

Allocations for reserve funds, expansion funds of the joint venture company and
welfare funds and bonuses for staff and workers shall be set aside in accordance
with the stipulations in the Law of the People's Republic of China on
Chinese-foreign Joint Ventures. The annual proportion of allocations shall be
decided by the board of directors according to the business situations of the
joint venture company.

Article 50

The fiscal year of the joint venture company shall be from January 1 to December
31. All vouchers, receipts, statistic statements and reports shall be written in
Chinese.

Article 51

Financial checking and examination of the joint venture company shall be
conducted by an accountant registered in China and reports shall be submitted to
the directorate and the general manager. In case either party considers it is
necessary to employ an auditor by itself to undertake annual financial checking
and examination, the other party shall give the consent. All the expenses
thereof shall be borne by the employing party.

Article 52

In the first three months of each fiscal year, the financial director shall
prepare previous year's balance sheet, profit and loss statement and proposal
regarding the disposal of profits, and submit them to the directorate for
examination and approval.

Article 53

All matter regarding foreign exchange shall be dealt with in accordance with the
Regulations on the Foreign Exchange System of the People's Republic of China and
other regulations.

                              CHAPTER 15 INSURANCE

Article 54 Insurance policies of the joint venture company on various kinds of
risks shall be underwritten with the People's Republic of China. The type,
value, currency and duration of insurance shall be decided by the directorate in
accordance with the stipulations of the China Insurance Regulatory Commission.

                                       10
<PAGE>

     CHAPTER 16 THE DISPOSAL OF ASSETS AFTER THE EXPIRATION OF THE DURATION

Article 55

The duration of the joint venture company is 20 years. The establishment of the
joint venture company shall start from the date on which the business license of
the joint venture company is issued. An application for the extension of the
duration, proposed by one party and unanimously approved by the directorate,
shall be submitted to responsive authorities.

Article 56

Upon the expiration or termination, the joint venture shall carry out
liquidation and pay taxes upon the liquidation income, that is the balance
between the amount of net assets or residual property minus undistributed
profit, various funds and balance of liquidation expense and contributed
capital, and shall made an allocation in proportion to the contributed capital.

       CHAPTER 17 THE AMENDMENT, ALTERATION AND DISCHARGE OF THE CONTRACT

Article 57  the amendment of the contract or other appendices shall come into
            force only after the written agreement signed by Party A and Party B
            and approved by the original examination and approval authorities.

Article 58  in case of inability to fulfill the contract or to continue
            operation due to heavy losses in successive years or force majeure,
            the duration of the joint venture and the contract shall be
            terminated before the time of expiration after unanimously agreed
            upon by the directorate and approved by the original examination and
            approval authorities.

Article 59  Should the joint venture company be unable to continue its
            operations or achieve the business purpose stipulated in the
            contract due to the fact that one of the contracting parties fails
            to fulfill the obligations prescribed by the contract and articles
            of association, or seriously violate the stipulations of the
            contract and articles of association, that party shall be deemed as
            having unilaterally terminated the contract. The other party shall
            have the right to terminate the contract in accordance with the
            provisions of the contract after approved by the original
            examination and approval authority as well as to claim damages. In
            case Party A and Party B of the joint venture company agree to
            continue the operation, the party who fails to fulfill the
            obligations shall be liable to the economic losses thus caused to
            the joint venture company.

                                       11
<PAGE>

                  CHAPTER 18 LIABILITIES FOR BREACH OF CONTRACT

Article 60

Should either Party A or Party B fail to pay on schedule the contributions in
accordance with the provision as defined in Article 10, 11 and 12, the breaching
party shall pay to the other party 1% of the contribution starting from the
first month after exceeding the time limit. Should the breaching party fail to
pay after 2 months, 2% of the contribution shall be paid to the other party, who
shall have the right to terminate the contract and to claim damages to the
breaching party in accordance with applicable provisions.

Article 61

Should all or part of the contract and its appendices be unable to fulfilled
owing to the fault of one party, the breaching party shall bear the
responsibilities thus caused. Should it be the fault of both parties, they shall
bear their respective responsibilities according to actual situations.

                            CHAPTER 19 FORCE MAJEURE

Article 62

Should either of the parties to the contract be prevented from executing the
contract by force majeur, such as earthquake, typhoon, flood, fire and war and
other unforeseen events, and their happening and consequences are unpreventable
and unavoidable, the prevented party shall notify the other party by cable
without any delay, and within 15 days thereafter provide the detailed
information on the events and a valid document for evidence issued by the
relevant public notary organization for explaining the reason of its inability
to execute or delay the execution of all or part of the contract. Both parties
shall, through consultations, decide whether to terminate the contract or to
exempt the part of obligations for implementation of the contract or whether to
delay the execution of the contract according to the effects of the events on
the performance of the contract.

                            CHAPTER 20 APPLICABLE LAW

Article 63

The formation of this contract, its validity, interpretation, execution and
settlement of the disputes shall be governed by the related law of the People's
Republic of China.

                                       12
<PAGE>

                       CHAPTER 21 SETTLEMENT OF DISPUTES

Article 64

Any disputes arising from the execution of, or in connection with the contract
shall be settled through friendly consultations between both parties. In case no
settlement can be reached through consultation, the disputes shall be submitted
for mediation. If the mediation doesn't function, the disputes shall be
submitted to China International Economic and Trade Arbitration Commission for
arbitration. The arbitral award is final and binding upon both parties.

Article 65

During the arbitration, the contract shall be observed and enforced by both
parties except for matters in dispute.

                                CHAPTER LANGUAGE

Article 66

The contract shall be written in Chinese version.

Article 67

The contract shall be made in quintuplicate. Party A and Party B shall, signing
all copies, each retain one copy and submit the remaining ones to authorities
for approval and registration as well as filing. Several copies shall be made
and distributed to relevant authorities.

           CHAPTER 23 EFFECTIVENESS OF THE CONTRACT AND MISCELLANEOUS

Article 68

The appendices drawn up in accordance with the principles of this contract are
integral part of this contract and equally authentic. The appendices include a
list of equipments provided by Party A as due investment, including but not
limited to name, date of delivery, service life, depreciation and integrity.

Article 69

Should notices in connection with any party's rights and obligations be sent by
either Party A or Party B by telegram, telex or fax etc., the written letter
notices shall be also required afterwards. The legal addresses of Party A and
Party B listed in this contract shall be the posting addresses. Any change in
the legal addresses of either party shall be notified to the other party.

                                       13
<PAGE>

Article 70

The contract and its appendices shall come into force beginning from the date of
approval of foreign economic and trade committee of Wuqing District, Tianjin.

Article 71

The contract is signed in Tianjin, China, by the authorized representatives of
both parties on July , 2006.

Party A: TIANJIN CHALLENGE FEED CO., LTD.

/s/ Wenbin Li
Legal Representative (Signature):

Party B: KIWA BIO-TECH PRODUCTS GROUP CORPORATION

/s/ Wei Li
Legal Representative (Signature):

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]