GLOSSARY(Terms used in the Program)

GLOSSARY

Following is a list of some of the terms/words used in the NDAXI program.

The definitions as utilized by NDAXI is under construction.

1031 Tax beneficial exchange--As defined by the US Treasury Department

AA Credit tenant(s)--As is recognized througout the industry

AAA Credit tenants(s)--As is recognized throughout the industry

Agriculture and/or Natural Resources property type

Average Existing Lease Term(s)--If Multiple tenants, the most dominant

Average Existing Lease Type(s)--If Multiple tenants, the most dominant

Average Strength Local Tenant(s)--If Multiple tenants, the most dominant

Cap Rate-(NOI) Net Operating Income divided by the Price

Carry Back Financing--Seller takes back a mortgate as part of the purchase price

Confidential Code--IMPORTANT: This is the confidential name, or number of combination thereor, which identifies to MEMBER, Quickly, (when they receive a MATCHING ADVICE NOTICE, which of their Property Listings or Buyers have MATCHED with the other NDAXI MEMBER

Equity--the 'difference' between what is owed and the Price (or value) of a property

Existing Mortgage(s)--Combination of all loans against the property

Future Growth Potential--Important: --Only use 'Very High if in fact something is inherent in the property which will cause the gross annual revenue to increase substantially in the 'future' and will thus alter the 'cap rate or gross rent multiplier or retrun on investment'. Examples: (a) property can be upgraded profitably (b) a new freeway or regional shopping center is soon to develop near the subject property which will affect value upwards and thus gross annual revenue, etc.

Gross Annual Income-the total of all income attributed tot he subject property

Gross Lease-owner pays all expenses

Gross Rent Multiplier-Price divided by Gross Annual Income.

Improved Property type -This will be either A-1 (improved, meaning physical improvements on the property which are either owner user or income producing via rent to tenant(s)

Joint Venture--wherein two or more parties jointly own a real estate asset

Limited Development--meaning that some small development will increase gross annual income slightly

Limited Partnership--meaning a partnership wherein the partners have liability limited to their total investment

Major Development--Important: Only use this if the property cals for some form of 'major upgrading wherein the gross annual revenue will increase and thus affecting cap rate, etc.

Net Lease--meaning part of the expenses are paid by the tenant/part by owner

Net Operating Income--Gross Annual Income less All property expenses

NN Lease (Double Net Lease)--Property expenses shared in some % by Lessee & Owner

NNN Lease (Triple Net Lease)--Lessee pays all expenses of property except exterior walls/roof.

Nom-Disclosure and Non Circumvention Agreement--

Ndaxi has a special form of this agreement which is quick and easy to access to enable MATCHEES to exchange OPEN or OFF MARKET Listing information with confidentialiy and and protection.

Quality of Tenant(s)- - Refers to their status, either'weak local', 'average strength local', 'stong local', "AA Credit' or "AAA Credit tenants"

Return on Investment (ROI) --This is the CASH flow remaining after deducting all of the property expenes and the DEBT SERVICE from the Gross Annual Income

Secured Notes--secured by real estate

Seller Financing--owner or selleer takes back a promissory note secured by deef of trust as part of the purchase price

Syndication--Wherein a 'group' of investors are formed to purchase real property

Un-Improved Land-zoned for property type:--Refers to real property that is basically 'unimproved and non income producing at the time, however is zoned for some specific type of use, i.e., 'residential' 'retail', 'warehouse', etc. If MULTIPLE zoning, for NDAXI purposes, use its most important zoning

Weak Local Tenant(s)-the lowest quality tenant or highest risk, therefore, usually accompanied by the highest rate of return.