Document:

Exhibit 10.22

 

COMMERCIAL LEASE

 

BETWEEN THE UNDERSIGNED

 

·             Mr Alain Tornier, born 24 August 1946 in Grenoble (Isère), French
national, residing 229, chemin de Buttit, 38330 Saint Ismier, divorced from Ms
Jocelyne Marguerite Elie following a judgment handed down by the Grenoble Tribunal de Grande Instance on 10 April 1980 and not
remarried;

·             Ms Colette Arlette TORNIER, born 30 January 1945 in Grenoble (Isère),
French national, residing La Tour Saint-Ange, 34, chemin du Bournet, 38180
SEYSSINS, wife of Mr Paul Marie Pierre Joseph BERIOT, married under the
matrimonial regime of separation of property as defined in Articles 1536 et
seq. of the French Civil Code under the terms of a pre-nuptial agreement
notarised by Maître Bernard UGINET, associate
notary, on 14 March 1996, prior to her marriage celebrated in Paris
(75004) on 12 April 1996;

 

	
   

  	
  acting as joint owners,

  
	
   

  	
  hereafter referred to collectively as the “Lessor”,

  
	
   

  	
  THE PARTY OF THE FIRST PART

  

 

And

 

Tornier SAS, a société par
actions simplifiée
incorporated in France, having its registered office at Chemin Doyen Gosse,
38330 Saint-Ismier, recorded in the Commercial Register of Grenoble under No. 070
501 275, represented for the purposes hereof by Mr Alain Tornier, manager,

 

	
   

  	
  hereinafter referred to as the “Lessee”,

  
	
   

  	
  THE PARTY OF THE SECOND PART

  

 

the Lessor and the Lessee being referred to
hereafter as the “Parties”.

Prior to signature of this lease the Parties
set out the following:

Under the terms of a lease dated 3 January 2003,
the Lessor leased to the Lessee the premises described in section 1 below. This
lease was for a fixed period to end on 31 December 2011. The Parties wish
to enter into a new lease under the conditions set out below and have therefore
agreed to enter into this lease which cancels and replaces any other commercial
lease previously entered into between the Parties in respect of the premises
specified in section 1 below.

THE FOLLOWING IS THEREFORE AGREED:

The Lessor hereby leases for use as commercial
premises to the Lessee, who accepts, in accordance with the provisions of
Decree No. 53-960 of 30 September 1953 and any subsequent legislation
under the specific and general conditions set out below the premises specified
below:

 

 

I —
SPECIFIC TERMS AND CONDITIONS

 

1 — LOCATION AND DESCRIPTION
OF THE LEASED PREMISES

 

Premises located at: rue du Doyen Gosse, 38330
Saint-Ismier; surface area: 21 a 55 ca.

Industrial and commercial premises comprising:

·             a ground floor covering 631.60 m2 for use as a warehouse and workshop, and

·             a first floor covering 380.90 m2 for use as a laboratory and canteen.

 

2 — TERM OF LEASE

 

This lease is granted and accepted for a period
of nine (9) full and consecutive years to commence this day.

 

However, pursuant to the provisions of Article L.145-4
of the French Commercial Code:

· the Lessee may give notice at any time at the end of
a three-year period subject to the formalities and notice periods stipulated in
Article L.145-9 of the French Commercial Code;

· the Lessor may terminate at the end of each three-year
period pursuant to the provisions of Articles L.145-18, L.145-21 and L145-24 of
the French Commercial Code.

 

3 — USE OF THE LEASED
PREMISES

 

The leased premises shall be used for the
manufacture and marketing of surgical instruments and products, in particular
bone implants.

 

The Lessee may however also carry on any other
activities related or complementary to this business.

 

4 — RENT

 

This lease is granted and accepted in
consideration of a gross annual rent of one hundred and four thousand three
hundred and ninety three euros (104,393 €) which the Lessee undertakes to pay
to the Lessor or his agent quarterly in arrears. The payments shall be made to
the address for service or any other address specified by the Lessor.

 

This rent is subject to value added tax.

 

5 — RENT REVIEW

 

The annual rent payable by the Lessee to the
Lessor shall be reviewed automatically every three years in line with the
variation in the quarterly cost of construction index published by INSEE. In
calculating this indexation, the numerator index shall be the last index
published on the date of indexation and the denominator index the last index
published on the previous date of indexation (or at the first review, the last
index published on this date of signature hereof).

 

Should this index cease to exist, the index
replacing it shall apply automatically. If no replacement index is published,
the Parties shall agree on a new index. Failing such agreement the new index
shall be determined by an arbitrator selected jointly by the Parties.

 

6 — LAND AND OTHER TAXES

 

The Lessee shall pay the amount of any land and
other taxes specified in the tax demand for the leased plot at the Lessor’s
first request and against presentation of the relevant supporting documents.

 

2

 

II
— GENERAL TERMS AND CONDITIONS

 

7 — TERMS AND CONDITIONS

 

This lease is granted and accepted subject to
the customary and statutory conditions applicable in such matters and in
particular those set out below.

 

7.1 — Condition
of the leased premises

 

The Lessee shall take the leased premises in
their condition on this day.

 

7.2 —
Maintenance, works, repairs and alterations to be carried out by the Lessee

 

7.2.1 —
Maintenance, works and repairs

 

Throughout the term of this lease and any
periods of renewal, the Lessee shall keep the leased premises in a good state
of maintenance and repair at all times save for such works as the Lessor
undertakes to carry out himself.

 

The Lessee is responsible for tenantable
repairs and shall return the premises in a good state of tenantable repair on
expiry of the lease.

 

The Lessee shall carry out any repairs required
as a result of any lack of maintenance or failure to carry out works for which
he is responsible or where damage is caused by him, his customers or his staff.

 

He shall neither do nor allow others to do
anything which might damage the leased premises and shall notify the Lessor by
any means without delay of any interference with the property and of any damage
or wear and tear occurring in the leased premises which requires works to be
carried out by the Lessor.

 

He shall be responsible for any conversions or
repairs required as a result of his carrying on his business activity, present
or future, including any such works required on health and safety grounds.

 

The Lessor henceforth authorises the Lessee to
carry out in the leased premises any works required by any authorities in order
to bring them up to the required standard subject to the Lessee’s obtaining any
permission which may be necessary for such works. On expiry of the lease he
shall return all such works in a good state of repair, maintenance and
operation.

 

7.2.2 — Alterations
to the leased premises

 

The Lessee may not carry out any structural
works without the prior written consent of the Lessor.

 

Where the Lessor consents to such works, the
Lessee shall carry them out at his own risk and shall not cause the Lessor to
be troubled or sought out in respect thereof. If the works affect the structure
of the building they shall at the express request of the Lessor be carried out
under the supervision of an architect whose fees shall be borne by the Lessee
who shall be take out the relevant ‘client defects insurance’ (assurance dommages-ouvrages).

 

Any works, alterations or improvements carried
out by the Lessee, including those carried out with the Lessor’s consent, shall
remain the property of the Lessor at the end of the Lessee’s period of
enjoyment and the Lessee shall have no claim to any compensation in respect
thereof.

 

3

 

7.3 —
Maintenance, works, repairs and alterations to be carried out by the Lessor

 

The Lessor shall retain exclusive liability for
the major repair works defined in Article 606 of the French Civil Code.

 

8 — TERMS OF ENJOYMENT

 

The Lessee shall ensure that the leased
premises are furnished with equipment, objects and effects belonging to him
personally in sufficient quantity and of sufficient value to ensure that he is
able to pay the rent and accessories and fulfil all the conditions of this
lease at all times.

 

The Lessee shall enjoy the leased premises in a
prudent and responsible manner in accordance with their intended use.

 

He shall refrain from doing anything which
might disturb the quiet enjoyment of neighbours and from carrying out any
activity which constitutes a breach of common decency.

 

The Lessee shall pay all municipal, police,
health, highways, health and safety and town planning duties and any other
charges which tenants are ordinarily expected to pay in such a manner that the
Lessor is never troubled or sought out in respect thereof.

 

The Lessee shall take personal responsibility,
ensuring that the Lessor is never troubled or sought out in respect thereof,
for any complaints or disputes which may arise as a result of the business he
carries on in the leased premises.

 

The Lessee undertakes to use the leased
premises for the normal operation of his business at all times except during
the usual weekly and annual closing times.

 

The Lessee shall tolerate any works carried out
in the leased premises or in the building in which they are located. He shall
have no claim to damages or reduction in rent in relation to such works.

 

9 — ADVERTISING

 

The Lessee may erect on the commercial façade
of the premises any external advertising indicating his name and type of
business on condition that it complies with the relevant administrative
regulations, with the co-ownership agreement and where applicable with the
development specification.

 

He undertakes to pay any taxes which may be due
in relation to such matters.

 

Any such erection shall be carried out at the
expense of the Lessee. He shall maintain it in perfect condition at all times
and shall alone be liable for any accidents caused by its erection or existence.
When the property is returned to the Lessor, the Lessee shall remove any such
name plates or advertising signs and ensure that all signs of its fixings have
disappeared.

 

10 — TAXES, DUTIES AND
CHARGES

 

10.1 — Taxes and
duties

 

The Lessee shall pay the following personal
contributions: local occupancy tax (taxe
d’habitation), local business tax
(taxe professionnelle) and in general all taxes, contributions and duties
for which he is or may in the future be personally liable and for which the
Lessor may be held responsible in any respect.

 

4

 

10.2 — Charges

 

The Lessee shall pay either directly to the
supplier or by repayment to the Lessor his share of the maintenance, service
and other charges of any nature in respect of the leased premises with the
exception of the building insurance and the major repair works specified in Article 606
of the French Civil Code as set out above.

 

11 — INSURANCE

 

The Lessee shall ensure and keep insured at all
times the leased premises, alterations, furniture, equipment and goods with a
reputable insurance company against fire, tenantable and professional risks,
recourse by neighbours and third parties, water damage, explosion and plate
glass.

 

The Lessee shall also contract cover for any
special risks inherent in his personal business activity and his occupation of
the premises. In case of loss, whatever the cause, the sums due to the Lessee
by the insurance companies shall form the Lessor’s guarantee in place of the
furniture and equipment until such time as said furniture and equipment is
replaced or restored.

 

This lease assigns to the Lessor by way of
security all insurance proceeds up to such amount as may be due to him and the
bearer of a copy of this lease shall have full authority to have notice of such
assignment served on any party required.

 

The Lessee shall maintain and renew this
insurance throughout the term of the lease, pay the relevant premiums and
charges regularly and present proof of such insurance to the Lessor as and when
requested to do so by the Lessor but at least annually.

 

12 — ASSIGNMENT AND
SUBLETTING

 

The Lessee is expressly authorised to assign
enjoyment of the leased premises to any party in any form, be it temporarily,
free of charge or at will,

 

· to sublet all or part of the premises;

 

· to assign the entirety of his right in this lease to
his successor in the business he operates;

 

· where he fulfils the legal requirements, to transfer
the business he operates (location-gérance) and to grant the transferee a right to occupy the
leased premises. He shall notify the Lessor of any such business transfer
arrangement.

 

13 — VIEWING

 

The Lessee shall allow the Lessor and his
agent, architect or any contractors or workers and any other person authorised
thereby to enter the leased premises subject to reasonable notice in order to
inspect their condition as Lessor sees fit during working hours on working
days.

 

If the property is offered for sale, the Lessee
shall allow potential buyers to view the leased premises during working hours
on working days.

 

Similarly, as soon as either Party gives notice
the Lessee shall allow potential tenants to view the leased premises.

 

5

 

14 — TERMINATION OF LEASE
IN EXCEPTIONAL CIRCUMSTANCES

 

Should the leased premises be completely
destroyed as a result of exceptional circumstances or a case of force majeure, this lease shall be terminated automatically
without compensation by the Lessor and without prejudice to his right of
recourse against the Lessee if he was responsible for said destruction.

 

15 — AUTOMATIC TERMINATION
CLAUSE

 

It is expressly agreed that failing the payment
of one single instalment of rent or failing the repayment on their exact due
dates of any accessories to said rent, in particular advance payments, fees,
taxes, duties and other charges, this lease shall be terminated automatically
one month after the date of an unheeded demand for payment or other order
containing a declaration by the Lessor of his intention to invoke this clause
without the need to complete any legal formalities.

 

Should the Lessee refuse to vacate the leased
premises, he may be evicted by interim order made by the president of the Tribunal de Grande Instance with geographical jurisdiction
immediately enforceable notwithstanding the right to appeal.

 

16 — ADDRESS FOR SERVICE

 

For the performance of this lease and any
subsequent proceedings, the Parties give their respective addresses for service
as follows:

·             The Lessor: the address indicated at the head of this
lease. The Lessor shall notify the Lessee of any change of address occurring
during the term of the lease.

·             The Lessee: the leased premises.

 

All disputes arising between the Parties shall
fall within the jurisdiction of the courts with geographical competence for the
leased premises.

 

 

At [    ], on 30/05 2006

In two (2) original copies

 

	
  The Lessor

  “Read and approved —
  Signature”

  Read and approved

  	
   

  	
  The Lessee

  “Read and approved —
  Signature”

  Read and approved

  
	
  /s/ Alain Tornier

  	
   

  	
  /s/ Alain Tornier

  

 

 

	
   

  	
  Read and approved

  	
   

  
	
   

  	
  /s/ Colette Tornier

  	
   

  

 

6

 

COMMERCIAL LEASE

 

BETWEEN THE UNDERSIGNED

 

·             Mr Alain Tornier, born 24 August 1946 in Grenoble (Isère), French
national, residing 229, chemin de Buttit, 38330 Saint Ismier, divorced from Ms
Jocelyne Marguerite Elie following a judgment handed down by the Grenoble Tribunal de Grande Instance on 10 April 1980 and not
remarried;

·             Ms Colette Arlette TORNIER, born 30 January 1945 in Grenoble (Isère),
French national, residing La Tour Saint-Ange, 34, chemin du Bournet, 38180
SEYSSINS, wife of Mr Paul Marie Pierre Joseph BERIOT, married under the
matrimonial regime of separation of property as defined in Articles 1536 et
seq. of the French Civil Code under the terms of a pre-nuptial agreement
notarised by Maître Bernard UGINET, associate
notary, on 14 March 1996, prior to her marriage celebrated in Paris
(75004) on 12 April 1996;

 

	
   

  	
  acting as joint owners,

  
	
   

  	
  hereafter referred to collectively as the “Lessor”,

  
	
   

  	
  THE PARTY OF THE FIRST PART

  

 

And

 

Tornier SAS, a société par
actions simplifiée
incorporated in France, having its registered office at Chemin Doyen Gosse,
38330 Saint-Ismier, recorded in the Commercial Register of Grenoble under No. 070
501 275, represented for the purposes hereof by Mr Alain Tornier, manager,

 

	
   

  	
  hereinafter referred to as the “Lessee”,

  
	
   

  	
  THE PARTY OF THE SECOND PART

  

 

the Lessor and the Lessee being referred to
hereafter as the “Parties”.

 

Prior to signature of this lease the Parties
set out the following:

Under the terms of a lease dated 3 January 2005,
the Lessor leased to the Lessee the premises described in section 1 below. This
lease was for a fixed period to end on 31 December 2013. The Parties wish
to enter into a new lease under the conditions set out below and have therefore
agreed to enter into this lease which cancels and replaces any other commercial
lease previously entered into between the Parties in respect of the premises
specified in section 1 below.

THE FOLLOWING IS THEREFORE AGREED:

The Lessor hereby leases for use as commercial
premises to the Lessee, who accepts, in accordance with the provisions of
Decree No. 53-960 of 30 September 1953 and any subsequent legislation
under the specific and general conditions set out below the premises specified
below:

 

7

 

I —
SPECIFIC TERMS AND CONDITIONS

 

1 — LOCATION AND
DESCRIPTION OF THE LEASED PREMISES

 

Premises located at: rue du Doyen Gosse, 38330
Saint-Ismier

The
ground floor of a villa with a surface area of approx. 250 m2

 

2 — TERM OF LEASE

 

This lease is granted and accepted for a period
of nine (9) full and consecutive years to commence this day.

 

However, pursuant to the provisions of Article L.145-4
of the French Commercial Code:

· the Lessee may give notice at any time at the end of
a three-year period subject to the formalities and notice periods stipulated in
Article L.145-9 of the French Commercial Code;

· the Lessor may terminate at the end of each
three-year period pursuant to the provisions of Articles L.145-18, L.145-21 and
L145-24 of the French Commercial Code.

 

3 — USE OF THE LEASED
PREMISES

 

The leased premises shall be used for the
manufacture and marketing of surgical instruments and products, in particular
bone implants.

 

The Lessee may however also carry on any other
activities related or complementary to this business.

 

4 — RENT

 

This lease is granted and accepted in
consideration of a gross annual rent of twenty eight thousand and five hundred
euros (28,500 €) which the Lessee undertakes to pay to the Lessor or his agent
quarterly in arrears. The payments shall be made to the address for service or
any other address specified by the Lessor.

 

This rent is subject to value added tax.

 

5 — RENT REVIEW

 

The annual rent payable by the Lessee to the
Lessor shall be reviewed automatically every three years in line with the
variation in the quarterly cost of construction index published by INSEE. In
calculating this indexation, the numerator index shall be the last index
published on the date of indexation and the denominator index the last index
published on the previous date of indexation (or at the first review, the last
index published on this date of signature hereof).

 

Should this index cease to exist, the index
replacing it shall apply automatically. If no replacement index is published,
the Parties shall agree on a new index. Failing such agreement the new index
shall be determined by an arbitrator selected jointly by the Parties.

 

6 — LAND AND OTHER TAXES

 

The Lessee shall pay the amount of any land and
other taxes specified in the tax demand for the leased plot at the Lessor’s
first request and against presentation of the relevant supporting documents.

 

8

 

II
— GENERAL TERMS AND CONDITIONS

 

7 — TERMS AND CONDITIONS

 

This lease is granted and accepted subject to
the customary and statutory conditions applicable in such matters and in
particular those set out below.

 

7.1 — Condition
of the leased premises

 

The Lessee shall take the leased premises in
their condition on this day.

 

7.2 —
Maintenance, works, repairs and alterations to be carried out by the Lessee

 

7.2.1 —
Maintenance, works and repairs

 

Throughout the term of this lease and any
periods of renewal, the Lessee shall keep the leased premises in a good state
of maintenance and repair at all times save for such works as the Lessor
undertakes to carry out himself.

 

The Lessee is responsible for tenantable
repairs and shall return the premises in a good state of tenantable repair on
expiry of the lease.

 

The Lessee shall carry out any repairs required
as a result of any lack of maintenance or failure to carry out works for which
he is responsible or where damage is caused by him, his customers or his staff.

 

He shall neither do nor allow others to do
anything which might damage the leased premises and shall notify the Lessor by
any means without delay of any interference with the property and of any damage
or wear and tear occurring in the leased premises which requires works to be
carried out by the Lessor.

 

He shall be responsible for any conversions or
repairs required as a result of his carrying on his business activity, present
or future, including any such works required on health and safety grounds.

 

The Lessor henceforth authorises the Lessee to
carry out in the leased premises any works required by any authorities in order
to bring them up to the required standard subject to the Lessee’s obtaining any
permission which may be necessary for such works. On expiry of the lease he
shall return all such works in a good state of repair, maintenance and
operation.

 

7.2.2 — Alterations
to the leased premises

 

The Lessee may not carry out any structural
works without the prior written consent of the Lessor.

 

Where the Lessor consents to such works, the
Lessee shall carry them out at his own risk and shall not cause the Lessor to
be troubled or sought out in respect thereof. If the works affect the structure
of the building they shall at the express request of the Lessor be carried out
under the supervision of an architect whose fees shall be borne by the Lessee
who shall be take out the relevant ‘client defects insurance’ (assurance dommages-ouvrages).

 

Any works, alterations or improvements carried
out by the Lessee, including those carried out with the Lessor’s consent, shall
remain the property of the Lessor at the end of the Lessee’s period of
enjoyment and the Lessee shall have no claim to any compensation in respect
thereof.

 

9

 

7.3 —
Maintenance, works, repairs and alterations to be carried out by the Lessor

 

The Lessor shall retain exclusive liability for
the major repair works defined in Article 606 of the French Civil Code.

 

8 — TERMS OF ENJOYMENT

 

The Lessee shall ensure that the leased
premises are furnished with equipment, objects and effects belonging to him
personally in sufficient quantity and of sufficient value to ensure that he is
able to pay the rent and accessories and fulfil all the conditions of this
lease at all times.

 

The Lessee shall enjoy the leased premises in a
prudent and responsible manner in accordance with their intended use.

 

He shall refrain from doing anything which
might disturb the quiet enjoyment of neighbours and from carrying out any
activity which constitutes a breach of common decency.

 

The Lessee shall pay all municipal, police,
health, highways, health and safety and town planning duties and any other
charges which tenants are ordinarily expected to pay in such a manner that the
Lessor is never troubled or sought out in respect thereof.

 

The Lessee shall take personal responsibility,
ensuring that the Lessor is never troubled or sought out in respect thereof,
for any complaints or disputes which may arise as a result of the business he
carries on in the leased premises.

 

The Lessee undertakes to use the leased
premises for the normal operation of his business at all times except during
the usual weekly and annual closing times.

 

The Lessee shall tolerate any works carried out
in the leased premises or in the building in which they are located. He shall
have no claim to damages or reduction in rent in relation to such works.

 

9 — ADVERTISING

 

The Lessee may erect on the commercial façade
of the premises any external advertising indicating his name and type of
business on condition that it complies with the relevant administrative
regulations, with the co-ownership agreement and where applicable with the
development specification.

 

He undertakes to pay any taxes which may be due
in relation to such matters.

 

Any such erection shall be carried out at the
expense of the Lessee. He shall maintain it in perfect condition at all times
and shall alone be liable for any accidents caused by its erection or
existence. When the property is returned to the Lessor, the Lessee shall remove
any such name plates or advertising signs and ensure that all signs of its
fixings have disappeared.

 

10 — TAXES, DUTIES AND
CHARGES

 

10.1 — Taxes and
duties

 

The Lessee shall pay the following personal
contributions: local occupancy tax (taxe
d’habitation), local business tax
(taxe professionnelle) and in general all taxes, contributions and duties
for which he is or may in the future be personally liable and for which the
Lessor may be held responsible in any respect.

 

10

 

10.2 — Charges

 

The Lessee shall pay either directly to the
supplier or by repayment to the Lessor his share of the maintenance, service
and other charges of any nature in respect of the leased premises with the
exception of the building insurance and the major repair works specified in Article 606
of the French Civil Code as set out above.

 

11 — INSURANCE

 

The Lessee shall ensure and keep insured at all
times the leased premises, alterations, furniture, equipment and goods with a
reputable insurance company against fire, tenantable and professional risks,
recourse by neighbours and third parties, water damage, explosion and plate
glass.

 

The Lessee shall also contract cover for any
special risks inherent in his personal business activity and his occupation of
the premises. In case of loss, whatever the cause, the sums due to the Lessee
by the insurance companies shall form the Lessor’s guarantee in place of the
furniture and equipment until such time as said furniture and equipment is
replaced or restored.

 

This lease assigns to the Lessor by way of
security all insurance proceeds up to such amount as may be due to him and the
bearer of a copy of this lease shall have full authority to have notice of such
assignment served on any party required.

 

The Lessee shall maintain and renew this
insurance throughout the term of the lease, pay the relevant premiums and
charges regularly and present proof of such insurance to the Lessor as and when
requested to do so by the Lessor but at least annually.

 

12 — ASSIGNMENT AND
SUBLETTING

 

The Lessee is expressly authorised to assign
enjoyment of the leased premises to any party in any form, be it temporarily,
free of charge or at will,

 

· to sublet all or part of the premises;

 

· to assign the entirety of his right in this lease to
his successor in the business he operates;

 

· where he fulfils the legal requirements, to transfer
the business he operates (location-gérance) and to grant the transferee a right to occupy the
leased premises. He shall notify the Lessor of any such business transfer
arrangement.

 

13 — VIEWING

 

The Lessee shall allow the Lessor and his
agent, architect or any contractors or workers and any other person authorised
thereby to enter the leased premises subject to reasonable notice in order to
inspect their condition as Lessor sees fit during working hours on working
days.

 

If the property is offered for sale, the Lessee
shall allow potential buyers to view the leased premises during working hours
on working days.

 

Similarly, as soon as either Party gives notice
the Lessee shall allow potential tenants to view the leased premises.

 

11

 

14 — TERMINATION OF LEASE
IN EXCEPTIONAL CIRCUMSTANCES

 

Should the leased premises be completely
destroyed as a result of exceptional circumstances or a case of force majeure, this lease shall be terminated automatically
without compensation by the Lessor and without prejudice to his right of
recourse against the Lessee if he was responsible for said destruction.

 

15 — AUTOMATIC TERMINATION
CLAUSE

 

It is expressly agreed that failing the payment
of one single instalment of rent or failing the repayment on their exact due
dates of any accessories to said rent, in particular advance payments, fees,
taxes, duties and other charges, this lease shall be terminated automatically
one month after the date of an unheeded demand for payment or other order
containing a declaration by the Lessor of his intention to invoke this clause
without the need to complete any legal formalities.

 

Should the Lessee refuse to vacate the leased
premises, he may be evicted by interim order made by the president of the Tribunal de Grande Instance with geographical jurisdiction
immediately enforceable notwithstanding the right to appeal.

 

16 — ADDRESS FOR SERVICE

 

For the performance of this lease and any
subsequent proceedings, the Parties give their respective addresses for service
as follows:

·             The Lessor: the address indicated at the head of this
lease. The Lessor shall notify the Lessee of any change of address occurring
during the term of the lease.

·             The Lessee: the leased premises.

 

All disputes arising between the Parties shall
fall within the jurisdiction of the courts with geographical competence for the
leased premises.

 

12

 

At [   ], on 30/05 2006

In two (2) original copies

 

	
  The Lessor

  	
   

  	
  The Lessee

  
	
  “Read and approved — Signature”

  	
   

  	
  “Read and approved — Signature”

  
	
  Read and approved

  	
   

  	
  Read and approved

  
	
  /s/ Alain Tornier

  	
   

  	
  /s/ Alain Tornier

  

 

 

	
   

  	
  Read and approved

  	
   

  
	
   

  	
  /s/ Colette Tornier

  	
   

  

 

13Exhibit
10.23

 

AMENDMENT TO COMMERCIAL LEASE NO. 2

 

BETWEEN
THE UNDERSIGNED:

 

ANIMUS, a French
limited liability company with capital stock of 8,000 € having its registered
office at Chemin Doyen Gosse, 38330 Saint Ismier, France, recorded in the
Commercial Register of Grenoble under No. 403 348 501, represented for
purposes of this agreement by Alain Tornier in his capacity as manager,

 

Represented
by Mr. Alain Tornier in his capacity as manager,

 

Hereinafter
“THE LESSOR”,

 

THE PARTY OF THE FIRST PART

 

and
“TORNIER”, a société par actions simplifiée
with capital stock of 311,024 €, having its registered office at Rue Doyen
Gosse - 38330 Saint Ismier, recorded in the Commercial Register of Grenoble
under No. 070.501.275, represented by Douglas Kohrs, Chairman and CEO,

 

Hereinafter
“THE LESSEE”,

 

THE PARTY OF THE SECOND PART

 

The
parties agree as follows:

 

RECITALS

 

The
Lessee hereby gives the Lessor notification of the following changes in the
legal organization of the TORNIER Group during the 2007 fiscal year:

 

Under
the terms of a decision by the single shareholder dated July 31, 2007,
TORNIER HOLDING SAS was absorbed in the form of a merger by TORNIER SAS, a
transaction that included the transfer of all of its assets, rights and
obligations. TORNIER SAS is therefore subrogated for TORNIER HOLDING in the
lease between the latter company and ANIMUS Sarl, whereby the change of party
was recorded in a supplemental agreement duly signed on July 31, 2007.

 

Under
the terms of a decision by the single shareholder dated December 29, 2007,
TORNIER MEDI-QUAL Sarl was dissolved with a transfer of all of its assets and
liabilities to TORNIER SAS, which has its registered office in Saint Ismier
(38330), Rue Doyen Gosse, and is a société par actions
simplifiée recorded in the Commercial Register maintained by the Tribunal
of Commerce of Grenoble under No. 070 501 275. TORNIER SAS therefore
assumes responsibility for the lease of the above-mentioned company covering
the premises located in Montbonnot (38330), 161 rue Lavoisier, for use as
follows:

 

· offices 140 m2

· storage 1553 m2

· lunchroom 10 m2

 

plus
a parking area of 461 m2, in exchange
for an annual rent, net of taxes, of 92,426 € with a security deposit of 46,213
€, corresponding to 6 months rent, as a guarantee of payment of the rent.

 

1

 

Consequently,
for reasons of administrative simplification, the lessee would like to transfer
from TORNER COMMERCIAL to TORNIER SAS the commercial lease executed on May 30,
2006, covering the premises located in Montbonnot (38330), 161 rue Lavoisier,
for the uses listed below:

 

· offices 101 m3

· storage 111 m2

· lunchroom 10 m2

 

plus
a parking area of 57 m2 in
exchange for an annual rent, net of taxes, of 17,767 €, with a security deposit
of 8,883 €, corresponding to 6 months of rent, to guarantee payment of the
rent.

 

The
purpose of this supplemental agreement is to modify the description of the
leased areas, which have been increased from the areas indicated in the
commercial leases signed on May 30 and 31, 2006, by the Lessor with,
respectively, TORNIER COMMERCIAL Sarl and TORNIER MEDI-QUAL Sarl.

 

AGREEMENT

 

The
“Lessor” having agreed to the subrogation of TORNIER SAS in the rights and
obligations of the leases described in the “Recitals” section of this
Agreement, the parties have agreed that their new relationship shall be
governed by this Supplemental Agreement.

 

Consequently,
the “lessor” leases, subject to the terms and conditions set forth below, to
the “Lessee”, which accepts, the property described below:

 

1/            DESCRIPTION

 

On
a parcel of land located in Montbonnot Saint-martin (38330) Zirst, 161 rue
Lavoisier, premises for use as:

 

·              office space 1407 m2

·              storage / equipment 1739 m2

·              lunchroom 72 m2

 

plus
a parking area of 850 m2

 

Any
error in the above description may not be invoked as grounds for a reduction or
increase of the rent, and the parties represent and warrant that they are
completely familiar with the size, location and characteristics of the future
properties.

 

2/            TERM - ENTRY INTO FORCE

 

This
lease is granted and accepted for a period of nine full and consecutive years,
is in force retroactive to May 31, 2006, and expires May 30, 2015.

 

Pursuant
to the provisions of Article L. 145-4 of the Commercial Code, the Lessee
shall have the option of cancelling the lease at the expiration of each
three-year period; the Lessor shall have the same option if it intends to
invoke the provisions of Articles L. 145-18, L. 145-12 and L. 145-24 of the
Commercial Code to rebuild the existing structure, to add floors to the
building or to carry out work specified or authorized in the context of a real
estate restoration operation.

 

2

 

3/            INTENDED OCCUPATION AND USE

 

Subject
to the provisions of Article 19 below, the Lessee itself must peacefully
occupy the leased premises in accordance with the requirements of the Civil
Code and for the needs of the administrative and technical operations
(including but not limited to packaging and storage) inherent to the activity
of the manufacture and sale of surgical instruments and products, to the
exclusion of any other utilization.

 

The
lessee may not modify this intended use on any pretext, even temporarily, nor
may it change the nature of the activity conducted on the premises.

 

The
lessee may, however, add associated or complementary activities, although on
the explicit condition that it makes its intentions known to the lessor and
asks it for the authorization via extrajudicial process pursuant to Articles L.
145-47 ff. of the Commercial Code.

 

4/            CONDITION OF THE LEASED PREMISES

 

The
lessee accepts the premises in their current condition as of the date of this
agreement.

 

5/            MAINTENANCE

 

To
the exclusion of the repairs stipulated in Article 606 of the Civil Code,
which remain the responsibility of the lessor, the lessee shall maintain the
leased premises in good condition and is responsible for minor repairs
necessitated by its tenancy.

 

The
lessee shall maintain all the installations for its own personal use, including
but not limited to heating, air conditioning, fire extinguishers, electrical
installations, lines and conduits for water, natural gas, electricity,
telephone and miscellaneous fluids, as well as the latches and locks of the
windows, doors and shutters, metal shutters, plate glass, window panes, floors,
tiling, floor coverings, paneling, ceilings etc.

 

The
lessee shall be liable for accidents caused by and to these items.

 

The
lessee must take all precautions to prevent damage caused by ice or freezing.

 

The
lessee shall also be liable for all repairs that are normally the
responsibility of the lessor, but which may be required either because of the
failure of the lessee to perform repairs for which it is responsible as cited
above, or as a result of wear or damage caused by the lessee, its employees or
its visitors, either in the leased premises or in other parts of the building.

 

6/            REPAIRS AND CONSTRUCTION IN THE
BUILDING

 

The
lessee must permit, regardless of the any annoyances experienced by it, all
repairs, reconstructions, addition of floors and any other construction work
that may be performed in the building and may not request any indemnity or
reduction of the rent, regardless of the scope and duration of the work, and
waiving the provisions of Article 1724 of the Civil Code, even when the
work lasts for a period longer than forty days.

 

The
lessee must immediately inform the lessor of any repair for which the latter is
responsible and the lessee finds is necessary. The lessee may be liable for any
consequences resulting from its failure or delay in notifying the lessor of the
need for such repairs.

 

3

 

The
lessee must remove, at its own expense and without delay, all falsework and
decorations, as well as all installations it may have constructed and the
removal of which is necessary for the identification and repair of leaks of all
types, cracks in the exhaust or ventilation ducts, including but not limited to
after fires or seepage and in general for the execution of all
construction work.

 

The
lessee must remove at its own expense and without delay, during the resurfacing
of outside walls, all fixtures, signage etc., the removal of which may be
necessary for the execution of the work.

 

7/            TRANSFORMATIONS AND IMPROVEMENTS
BY THE LESSEE

 

The
lessee may not perform any demolition, construction or any change of layout,
partitioning, make any openings in the walls or install any panel or sign on
the facades or anywhere else in the leased premises without prior written
permission from the lessor. If the work is authorized, the work must be
performed under the supervision of the lessor’s architect, whose fees shall be
paid by the lessee.

 

Upon
the expiration of this lease, all decorations, improvements and constructions
installed by the lessee in the leased premises shall remain the property of the
lessor without any compensation paid to the lessee.

 

8/            FURNISHING AND OBLIGATION TO USE

 

The
lessee must keep the leased premises in continuous use. The lessee must also
furnish the premises and keep them continuously stocked at all times with
equipment, merchandise and furniture of sufficient value to cover the payment
of the rent and the miscellaneous payments or reimbursements that are
associated with the use of the premises.

 

9/            INSURANCE

 

The
lessee must insure with a solvent insurance company and keep covered for the
entire term of the lease all equipment, furniture, merchandise and
miscellaneous items used to furnish the leased premises, as well as all the
installations and fixtures, in particular against fire, explosions, water
damage and natural disasters.

 

The
coverage must include, among other things, electrical damage, breakage of
computer and office equipment, glass breakage, tangible and intangible damage
resulting from theft or attempted theft, costs of removal and replacement,
removal of debris and demolition, including transport of the rubble, expert’s
fees and indirect losses.

 

The
lessee must also obtain coverage for claims by neighbors and third parties.

 

The
lessee must also purchase insurance covering the pecuniary consequences of its
civil liability, and bodily injury or property damage that may be caused to
third parties, not only as a result of its tenancy and the use of the fixtures
and installations, but also damage and injury caused by its employees and
vicarious agents.

 

The
policy must also provide coverage of the pecuniary consequences of the lessor’s
civil liability on account of any damage that may be caused to third parties by
the buildings, land, walls and fences.

 

The
lessor and its insurors waive all recourse against the lessee, this waiver of
recourse being reciprocal, whereby the lessee and its insurors also waive all
recourse against the lessor.

 

4

 

In
response to a first request from the lessor or its representative, the lessee
must provide documentary evidence of the subscription of said insurance
policies and the payment of the corresponding premiums.

 

10/          PREVENTION OF NATURAL AND
TECHNOLOGICAL RISKS

 

The
lessee acknowledges, pursuant to the provisions of Article L. 125-5 of the
Environmental Code, that it has been informed of the status of the leased
premises with regard to natural and technological risks, and that it is aware
of the status of the natural and technological risks. The lessee also
acknowledges receipt of the summary report prepared by the Prefecture of Isère,
as well as the status of the risks, as these documents are annexed to this
Agreement.

 

11/          TAXES AND ASSESSMENTS

 

Independently
of the reimbursements it may be required to make to the lessor, the lessee must
pay all taxes, contributions or assessments for which it is responsible and for
which the lessor may be held liable for any reason whatever, and must prove the
payment of the amounts in question in response to any request from the lessor,
in particular upon the expiration of the lease, before vacating the premises.

 

The
parties explicitly agree that the lessee shall reimburse the lessor for its
percentage of the real-estate tax on the improved property.

 

This
participation shall be payable, at the option of the lessor, either at the end
of the period, upon receipt of the tax assessment, or in installments,
quarterly and in advance, at the same time as the rent for the premises
currently leased, with a settlement at the end of the period, as soon as the
lessor has been informed of the exact amount of said tax.

 

12/          COMPLIANCE WITH GOVERNMENT AND
OTHER REQUIREMENTS

 

The
lessee must obey the requirements, regulations and orders in force, including
but not limited to those related to road maintenance, cleanliness, the police,
the labor inspection office and compliance of the premises with general health
and safety standards, so that the lessor is protected and held harmless from
any and all claims, and the lessee must be responsible for all resulting
repairs and construction work.

 

If,
now or in the future, there are formal regulations governing the use and
enjoyment of the property or condominium rules for the building, the
lessee must obey all such rules and regulations. The lessee must also
comply with any decision duly adopted by the meeting of the co-owners.

 

13/          CLAIMS FROM OR AGAINST THIRD
PARTIES

 

The
lessee must assume personal responsibility, at its own risk, peril and expense
for any claims made by the other occupants of the building, the neighbors or
third parties, including but not limited to noise, odors, heat or trepidations,
caused by it or by equipment belonging to it, whereby the lessor must be
protected and held harmless from any such claims.

 

Nevertheless,
if the lessor is required to pay any sums as a result of the lessee’s actions,
the lessee shall be required to reimburse the lessor without delay.

 

The
lessee must assume personal responsibility for all damage caused to the leased
premises and all interference with enjoyment caused by the other occupants of
the building, neighbors or third parties and must take action directly against
the parties responsible for the interference, whereby the lessor must be
protected and held harmless.

 

5

 

14/          SECURITY

 

The
lessee shall be personally responsible for the security and surveillance of its
premises. The lessor may not in any case or for any reason be held liable for
thefts or misappropriation of which the lessee may be the victim in the leased
premises.

 

15/          DESTRUCTION OF THE LEASED PREMISES

 

If
the premises are totally destroyed by an event which is beyond the lessor’s control,
this lease shall be cancelled ipso jure
without payment of any indemnity.

 

In
the event of a partial destruction of the premises, this lease may be cancelled
without indemnity at the request of either party, notwithstanding the
provisions of Article 1722 of the Civil Code, but without prejudice, for
the lessor, to its potential recourse against the lessee if the destruction was
the fault of the latter.

 

16/          INTERRUPTION IN PUBLIC UTILITIES

 

The
lessor may not be held liable for irregularities or interruptions in the supply
of water, natural gas, electricity or any other analogous public utilities
outside the building, nor is the lessor required to give the lessee advance
notice of interruptions.

 

17/          RETURN OF THE PREMISES

 

On
the occasion of the expiration of the lease, the lessee must notify the lessor
one month in advance of the date on which it plans to vacate the premises so
that the lessor can submit the required information to the tax authorities.

 

The
lessee must return the keys on the day it vacates the premises, even if that is
before the expiration of the current term of the lease.

 

18/          AMENDMENT - WAIVERS - SEVERABILITY

 

This
agreement may only be amended by an explicit written document in the form of a
bilateral agreement or an exchange of letters.

 

An
amendment of this type may not in any case be deemed to have been made as a
result of a lack of action on the part of either party or a simple failure of
any frequency and duration to enforce its rights. The lessor and the lessee are
free at any time to demand the strict enforcement of the clauses and
stipulations that have not been the subject of an explicit or written
amendment.

 

The
lease is held to be indivisible for the sole benefit of the lessor, in
particular in the case of any sub-lease that may be authorized. In the case of
co-lessees as the result of any change of ownership, the obligation of the
co-lessees shall be deemed joint and indivisible.

 

6

 

19/          ASSIGNMENT - SUB-LEASING

 

The
lessee may not:

 

·              allow the enjoyment of the leased
premises to any party whatever in any form whatever, even temporarily, for free
or for a short period, or sub-lease the premises in whole or in part, except
for the benefit of any company having its registered office in France which is
the parent company or subsidiary of the lessee, or for the benefit of any
company having its registered office in France that controls the lessee or is
controlled by the lessee within the meaning of Article L. 233-3-I of the Commercial
Code.

 

·              assign its right to this lease,
except in totality to its business successor, in which case it must obtain
permission for said assignment from the lessor and not simply notify it of the
transfer of the lease, and must give the lessor an execution copy or a copy of
the assignment document which shall serve as title with respect to the
assignee.

 

The
lessee shall remain the guarantor, jointly and severally with its assignee and
all successive assignees, as well as with its sub-lessee or sub-lessees, for
payment of the rent and charges, current and future, and for compliance with
the conditions of this lease.

 

The
lessee may not transfer or assign the lease if any rent or charges are due.

 

20/          RENT

 

This
lease is granted and accepted in exchange for an annual rent, net of taxes of two hundred fifty-two thousand five hundred forty-five euros
(252,545 €).

 

This
rent will be subject to the value-added tax at the rate in force.

 

The
lessee shall reimburse the lessor for the amount of the tax assessed on the
rent and charges on the occasion of the payment of each installment of the
rent.

 

The
rent shall be payable quarterly and in advance in equal installments of sixty-three thousand one hundred thirty-six euros and twenty-five
euro-cents (63,136.25 €) net of taxes, at the lessor’s registered
office or at the offices of the person or company managing the leased premises
in the lessor’s place, for the first time upon delivery of the premises and on
the first day of each calendar quarter thereafter.

 

Miscellaneous
charges and services shall be reimbursed under the conditions described in
greater detail in the article entitled “Charges” below.

 

The
rent for the premises described above is subject to variations in proportion to
the index of the cost of construction published quarterly by the I.N.S.E.E.

 

This
article constitutes a conventional indexing clause and does not refer to the
triennial revision permitted by law pursuant to Articles 26 and 27 of the
Decree dated September 30, 1953, which shall be applied ipso jure.

 

The
rent shall be adjusted on the basis of this clause every 3 years counting from
the date of entry into force of the lease. The rent shall vary by the same
percentage as the selected index. The indexing shall enter into force
automatically without the requirement for prior notification.

 

If
the selected index is no longer published or can no longer be applied for any
reason whatever, it shall be replaced by the closest index, which shall be
identified, in case of doubt, by an expert acting for both parties, appointed
by agreement between them or, if no agreement can be reached, by an order of
the President of the court in response to a petition from the more diligent
party. If the expert declines to accept the assignment, resigns or is unable to
perform the task for any reason whatever, a replacement shall be appointed in
the same manner.

 

7

 

21/          CHARGES

 

The
lessee shall pay, either by direct payment to the supplier or by reimbursement
to the lessor, its proportional share of the costs of maintenance, services and
all other building charges, plus the VAT, where applicable.

 

The
lessee shall pay all the expenses for the supply of water, natural gas, fuel,
telephone, security etc. directly.

 

The
reimbursement to the lessor of all these charges or expenses shall be made at
the same time as the payment of each installment of the rent in the form of
provisional installment payments, with a final settlement once a year.

 

22/          CANCELLATION

 

If
payment in full of even a single installment of the rent or reimbursement of
expenses, charges or services that represent accessory costs is not received
when due, or in the event of a default of any of the conditions of this lease,
and one month after a simple demand for payment or an official demand for payment
from a bailiff has gone unheeded, containing a statement by the lessor of its
intention to invoke this clause, this lease shall be cancelled ipso jure if the lessor considers it appropriate, without
the need to bring formal proceedings

 

If
the lessee refuses to vacate the premises, it may be evicted without delay by a
simple interim order issued by the President of the Regional Court of Grenoble
and immediately enforceable, notwithstanding any appeal.

 

23/          SECURITY DEPOSIT

 

The
lessor shall receive from the lessee the sum of one hundred
twenty-six thousand seven hundred seventy-two euros (126,772 €)
corresponding to six (6) months of rent, in payment of the rent and to
guarantee the proper performance of the terms and conditions of this lease,
repairs resulting from the tenancy and all amounts owed by the lessee for which
the lessor could be held liable.

 

23/          COSTS

 

The
lessee shall pay all the costs relating to this agreement and its successors.

 

24/          ADDRESS OF SERVICE

 

For
the performance of this agreement and its successors, the parties elect address
of service at the location of their respective registered offices.

 

Executed
in Montbonnot in two originals

on
December 29, 2007

 

	
  for
  ANIMUS SARL

  	
   

  	
  for
  SAS “TORNIER”

  
	
  Alain
  Tornier

  	
   

  	
  Douglas
  Kohrs

  
	
   

  	
   

  	
   

  
	
  /s/
  Alain Tornier

  	
   

  	
  /s/
  Douglas Kohrs

  

 

8

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