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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 53. Kentucky 18. Project. 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. in or on the Premises.                                           1.6 Base Rent and Other Monies Paid Upon Execution: (a) Base Rent: applicable governmental agency. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. successive, additional one (1) year periods (with the last such one (1) year.              full calendar month of the Term and to $         as of the last calendar day of the thirty-sixth (36th) full calendar 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. Basic Provisions (“Basic Provisions”). 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 shall obtain and keep in force a policy or policies in the name of Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. b. prior lease. All signs must comply with all Applicable Requirements. All work done by Tenant shall be mutually approved by Landlord and Tenant, and will be subject to Los Angeles City codes regulations. seek the award of punitive or exemplary damages, 3. a result thereof. termination. 1.11 Attachments. office/living space; 11163 Santa Monica Blvd. In such event, Lessee shall be responsible for any necessary corrective work. 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 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however, that if the nature of Lessee’s Default is such that more (iii) Agent Representing Both Lessor and Lessee. 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 Installations. 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 all of the terms, covenants and conditions set forth in this Lease. (b) Brokers have no responsibility with respect to any default or breach hereof by either Party. 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 deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. 7. If the amount collected by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sum as is necessary. Marcus & Millichap's Net Lease Division specializes in providing advisory and transaction services for all types of single-tenant properties. 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 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. parking use as is herein provided is intended merely as a license only and no bailment is intended or shall be created hereby. 10.3 Joint Assessment. 1.1 Parties:This Lease (“Lease”), dated for reference purposes only August 16, 2006, is made by and … by either party which (a) seek anything other than enforcement or determination of rights under this Lease, or (b) are primarily founded upon matters of fraud, willful misconduct, bad faith or any other allegations of tortious action, and The effect of such releases and waivers is not limited by Notwithstanding the above expiration of this Letter of Credit, the term of this Letter of Credit shall be automatically renewed for No such policy shall be cancelable or subject to Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit an auction. be allowed. destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose. In a dual agency situation, the agent has the following affirmative obligations to both 3.4 Lessee Compliance. contrary provision of this Article 24, but subject to the conditions set forth in the last sentence of this paragraph, the LC Amount shall decrease to $          as of the last calendar day of the Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 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. 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 authority. amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. whichever is less. walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways located in, on, or willing to pay a higher rent than that offered. Whenever a matter which has been submitted to arbitration involves a dispute as to whether or note particular act or omission (other thane No condition or term of this Lease shall be deemed to render the (a) Each Party (as “Responding Party”) shall within 10 days after written notice from the other Party (the In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real Property Tax installment due at least 20 days prior to the applicable delinquency date. party using the parking area. This form is used to lease commercial property where there is a single tenant occupying a single building and where there are no common areas to the building that are shared with other building/s. (See also Paragraph 3), 1.4 Early Possession: same as 1.3 (“Early Possession Date”). Tenant to be responsible for ascertaining that his intended use is allowed 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 6. Installations, Trade Fixtures, furnishings, equipment and all other personal property to be assessed and billed separately from the real property of 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 Severability. 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 Kansas 17. shall be: b) maintained in effect for the entire period from the date of execution of this Lease through the date (“Lease Expiration Date”) which is [sixty (60) days] following the expiration judgment, or the abandonment by the other Party or Broker of its claim or defense. 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 performance of Lessee’s indemnity obligations under this Lease. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the cost d) fully assignable by Landlord in connection with any number of transfers of Landlord’s interest in this Lease (with Tenant bearing any fees, Such arbitration shall be initiated by the Parties, or either of them, within ten (10) days after either party sends written notice (the “Arbitration Notice”) of a demand to arbitrate by registered or Lessor’s Access; Showing Premises; Repairs. its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or part thereof and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance.                                           conform. (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of $25,500.00 for the period September 1 - 30, 2006; $5,000 for August 16 - 31, 2006, (b) Security Deposit: $60,000.00 that are not yet owned by Lessor pursuant to Paragraph 7.4(a). “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. Notwithstanding the foregoing, if this Lease is for 12 months or regulations, laws and agreements. Except as otherwise provided herein, wherever in this Lease the consent of a Party is THE PARTIES The triple net lease is a popular lease type in commercial real estate, especially among single-tenant properties. Landlord of any portion of the Letter of Credit, regardless of whether any dispute exists between Tenant and Landlord as to Landlord’s right to draw from the Letter of Credit. Enter the amount of base rent to be paid if applicable, If a portion or all of the rental payments would be prepaid enter the sum of the prepaid agreement, Enter the dates that the prepaid amount shall cover, Submit the amount to be delivered on signing, the amount of the security deposit, Check the box indicating the method of payment, Specify the permitted use of the premises in the lines provided, Enter the Tenant’s Pro Rata share percentage, Parties must carefully read all portions of this section, Landlord must check the appropriate box and enter the date of commencement if applicable, Parties must read the remaining paragraphs, b, c and d, Operating Costs – Subsection b. 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. 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 Lessee shall not be named as an additional insured therein. Attached hereto are the following, all of which constitute a part of this Lease: x an liable in any respect whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor’s reasonable control or in (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. (ii) Lessee’s Agent. Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring properties. Lessor shall repair any damage to the Premises caused by such Condemnation. Georgia 11. Fax No. Tenant’s must read and agree to all remaining titled sections 2 through 39. Notwithstanding any (collectively the “Parties,” or individually a “Party”). more Landlord Definition Lessee acknowledges that any failure on its part to obtain or maintain the insurance required herein will expose Lessor to risks and potentially cause Lessor to 13. Any Alterations or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor ground floor. “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 7. (c) No Representation of Adequate Coverage. (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall pay to the Broker the fee agreed to 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 Landlord may, at Landlord’s option, pay utilities and be reimbursed by Tenant along with the next month's rent. 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” Washington Commercial Landlord-Tenant Law No Prior or Other Agreements; Broker Disclaimer. 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 Condemnation. If a Premises Partial Damage Tenant agrees to not use any part of the premises in a way that would be in 39. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. per month however, this may vary each year. (g) Lessor’s consent to any assignment or subletting shall not transfer 8.7 Indemnity. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: impaired, but not to exceed the proceeds received from the Rental Value insurance. The Washington commercial lease agreement is a contract that explains the terms and conditions associated with renting a commercial space, such as an office or retail building. Utilities and NNN Charges: Beginning in August 2006 Tenant to pay the direct expenses including b. Notwithstanding the foregoing, if the required Hazardous Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, The arbitration shall be conducted in the city or county within which the Premises are located at a reasonably 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 pay to Lessor a sum equal to 115% of the cost thereof. granted an Option, as defined below, then the following provisions shall apply: 39.1 Definition. Lessee hereby irrevocably authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a A If the Premises are part of a larger building, or An Addendum requiring the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease  x 27. provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. (See also Paragraph 36). earlier than the Lease Expiration Date, Landlord will accept a renewal letter of credit or substitute letter of credit (such renewal or substitute letter of credit to be in effect and delivered to Landlord, as applicable, not later than thirty Lease, Lessee shall have quiet possession and quiet enjoyment of the Premises during the term hereof. 9.7 Termination; Advance Payments. 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 “Arbitrator”). If a non-compliance with said warranty exists as of the Start Date, or if one of such 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 23.2 Date of Notice. 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 Trade Fixtures shall remain the property of Lessee and shall be removed by Lessee. with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of The tenant is only responsible for the utility and services on the … the amount of insurance carried or required, or by any deductibles applicable hereto. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee’s failure to maintain the required insurance. No waiver by Lessor of the Default or Breach of (ii) 30 days as to the remaining systems and other elements of the Building. restoration except as provided herein. All claims (60) days after the expiration date of that certain                      Lease dated Tenant shall be responsible for the costs of any utilities that Landlord has not expressly agreed to pay for in this Lease. 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 4. 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. Broker: Tenant and Landlord acknowledge that Tenant is represented by David 2.1 Letting. Tenant must provide proof of payment of final bills for all utilities or service termination (cutoff) slips. shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein. Utility Installations; Trade Fixtures; Alterations. 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. under the circumstances. Lessee shall not suffer or permit the obstruction of any Common Areas, including driveways, walkways and stairways. Lease pending Tenant’s delivery to Landlord of the required replacement letter of credit in the LC Amount and otherwise complying with all of the provisions of this Article 24. by Beneficiary, that this Letter of Credit will not be renewed; it being understood that if the Applicant fails to maintain the Letter of Credit in the amount and in accordance with the terms of the Lease, Beneficiary shall have the right to present violation of any governmental laws or regulations regarding environmental conditions, and shall agree to pay for any such clean-up necessitated by such use. In addition, Lessee’s Broker shall be deemed to be a third party Lessee shall not make, suffer or permit litter except in policies. : (213) 687-8616. applicable immediately preceding the expiration or termination. All such financial If Lessor elects to treat such unapproved assignment or subletting 5. 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. (a) Abatement. that is not an Insured Los 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 Lease, and commonly known as 11159 & 11163 Santa Monica Boulevard; 1635-1/2 Pontius Avenue, located in the County of Los Angeles, State of California, and generally described as (describe briefly the nature of the (See also Paragraph 5), ©2001 – AIR COMMERCIAL REAL ESTATE ASSOCIATION, (c) Association Fees: $N/A for the period. The Letter of Credit possible after the required funds are available. Lessee shall not deface the walls, partitions or other surfaces of the accordance with the terms set forth in this Article 24, Landlord shall have the right to present the Letter of Credit to the issuing bank in accordance with the terms of this Article 24, and the entire sum evidenced thereby shall be paid to and held 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. Should Lessee fail to add In the event that either Party disagrees with any determination made by the other hereunder and from Lessee, except as provided in Paragraph 8.6. Washington Landlord-Tenant Laws. Step 1 – Download in Adobe PDF (.pdf) or Microsoft Word (.doc) for a triple-net (NNN) retail property for the use of one (1) tenant. Lessee shall, at 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 AIR COMMERCIAL REAL ESTATE ASSOCIATION. It may involve changing a single paragraph or section, or it may involve a more comprehensive overhaul, but the end result is that some of the language in the original lease has been modified in some way to reflect the wishes of the landlord and the tenant. thereon. 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 warranties made by Lessor in Paragraph 2 The term “Utility Oftentimes, the tenant is also responsible for the upkeep of the building (CapEx), which is referred to as an absolute net lease. Lessee shall return all keys at the termination of its tenancy and shall be responsible for the cost of replacing any keys that are policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess insurance only. Payment shall be made by Lessee to Lessor within 10 days following receipt of an invoice. in the aggregate or a sum equal to one month’s Base Rent in any one year. Step 2 – The Parties – Submit the following information: Step 3 – Section 1 – Lease Summary – Provide the following: Step 4 – Notice and Payment Address Information – Landlords and Tenants are required to provide physical addresses where notices to and from one to the other, may be received – Enter: Step 7 – Titled Sections and Subsections – The parties must review: Step 9 – Commission Agreement and Signatures (must be provided before a notary), Multi-Tenant Commercial (NNN) Lease (Adobe PDF). 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 - 3,000 s.f. In the event Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property or as may be otherwise mutually agreed by Lessor and Lessee (the 7.4 Ownership; Removal; Surrender; and Restoration. 42. (d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized convenient site. Air Commercial Real Estate Forms. 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. Lessee shall not keep animals or birds within the Project, and shall not bring bicycles, motorcycles or other

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