On June 20, 2008,SCOLR Pharma, Inc. entered an agreement with Arden Realty Limited Partnership to lease approximately 20,500 square feet of office and laboratory space at 19204 North Creek Parkway, Bothell, WA. The term of the lease is 88 months and expected to commence in October 2008, subject to completion of tenant improvements. The monthly base rent is as follows:

Months Monthly Base Rent
1 and 6-12 $31,379

13-24      $32,333
25-36      $33,287
37-48      $34,335
49-60      $35,289
61-72      $36,426
73-84      $37,491
85-88      $38,629

The monthly base rent is subject to certain adjustments described in the lease and rent will be abated for four months during the first year of the lease term. We will be responsible for certain additional rent, including our proportionate share of property taxes, insurance, utilities and certain maintenance expenses. The lease provides us with an option to extend the term for one five-year period. As security for our obligations under the lease agreement, we provided a $564,000 irrevocable, unconditional standby letter of credit which is secured by a restricted cash account. The amount of the letter of credit will be reduced over the term of the lease.

A copy of the Lease is attached as Exhibit 10.1 to this report and is incorporated herein. The foregoing description of the Lease does not purport to be complete and is qualified in its entirety by reference to such exhibit.

The disclosure contained under Item 1.01 above is incorporated into this item by reference.

(d) Exhibits.

Exhibit No. Description
10.1 Standard Multi-Tenant Lease dated June 20, 2008