Document:

Exhibit 10.36

FOURTH AMENDMENT AND CONSENT TO THIRD AMENDED AND
RESTATED CREDIT AGREEMENT

FOURTH
AMENDMENT AND CONSENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as
of February 27, 2006 (this “Amendment”), to the Third Amended and
Restated Credit Agreement, dated as of June 30, 2005 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), by and
among General Electric Capital Corporation, as Agent (in such capacity, “Agent”),
Inverness Medical Innovations, Inc. (“Innovations”), Wampole
Laboratories, LLC (“US Borrower”) and Inverness Medical (UK) Holdings
Limited (“European Borrower”, together with US Borrower, collectively, “Borrowers”),
the other Credit Parties signatory thereto, Merrill Lynch Capital, a division
of Merrill Lynch Business Financial Services Inc., as documentation agent,
co-syndication agent and lender, UBS Securities LLC, as co-syndication agent,
and the lenders signatory thereto from time to time (collectively, the “Lenders”).

W I  T  N  E  S  S
E  T  H

WHEREAS,
Borrowers have notified Agent that Inverness Medical Switzerland GmbH (“Swissco”)
desires to acquire (the “Clondiag Stock Purchase”) one hundred percent
(100%) of the issued and outstanding stock of Clondiag Chip Technologies GmbH,
a corporation organized under the laws of Germany (“Clondiag”);

WHEREAS,
the purchase price payable for the Clondiag Stock Purchase pursuant to that
certain Share Purchase Agreement between Swissco, Innovations, Clondiag
Beteiligungs-Gesellschaft GmbH (“CBG”) and the persons signatory thereto
as sellers (such persons and CBG are collectively referred to herein as “Sellers”),
dated as of February 28, 2006 (the “Purchase Agreement”) is contemplated
to be paid as follows: (a) consideration consisting of €2.64 million in cash
(the “Clondiag Closing Date Cash Consideration”) shall be payable on
Completion (as defined in the Share Purchase Agreement) to certain Sellers; (b)
consideration consisting of 218,502 shares of Innovations Stock (the “Clondiag
Closing Date Share Consideration”, collectively with the Clondiag Closing
Date Cash Consideration, the “Clondiag Closing Date Consideration”)
shall be payable on Completion to certain Sellers; and (c) consideration
consisting of €4.16 million in cash  (the
“CBG Consideration”) shall be payable on Completion II (as defined in
the Purchase Agreement) to CBG;

WHEREAS,
in addition to the Clondiag Closing Date Consideration to be made on
Completion, Swissco will, pursuant to Section 1.2.1 of the Purchase Agreement,
repay outstanding indebtedness of Clondiag in the amount of €7,329,557.81
million (the “Outstanding Indebtedness”) on Completion (the “Clondiag
Payoff Amount”);

WHEREAS,
on or prior to March 31, 2006 pursuant to Section 1.2.2 of the Purchase
Agreement, Swissco will (i) make a cash contribution to Clondiag (the “Clondiag
Cash Contribution Payment”) to enable Clondiag to make certain payments in
respect of taxes of employees of Clondiag and (ii) distribute shares of Innovations’
Stock to Clondiag for further

1

distribution to employees of
Clondiag (the “Clondiag Share Contribution Payment”, collectively with
the Clondiag Cash Contribution Payment, the “Clondiag Working Capital
Payments”);

WHEREAS,
in the event that the value of the Clondiag Closing Date Share Consideration is
less than €4.87 million on December 29, 2006, Swissco is required to make a
cash payment to the Sellers receiving such Stock in an amount equal to (a)  €4.87 million less (b) the value of such
Stock on December 29, 2006, as calculated in accordance with the Purchase
Agreement (the “Make Whole Payment”);

WHEREAS,
Swissco is required to pay the Earnout Payment (as defined in the Purchase
Agreement) of up to €7,500,000 at such times, if any, as the conditions to such
payment have been met as set forth in the Purchase Agreement;

WHEREAS,
under Section 4.2 of the Purchase Agreement, Swissco is required to make
available to Clondiag the agreed upon budget for 2006 in an amount not to
exceed €5,000,000 (the “Budget Payment”);

WHEREAS,
the Clondiag Stock Purchase is not a Permitted Acquisition and therefore is
prohibited under Section 6.1 of the Credit Agreement;

WHEREAS,
the issuance of Stock of Innovations (the “Stock Issuance”) as
contemplated by the Purchase Agreement is prohibited under Section 6.5
of the Credit Agreement;

WHEREAS,
Borrowers have requested that Agent and Requisite Lenders consent to the
Clondiag Stock Purchase and the Stock Issuance on the terms and subject to the
conditions set forth herein; and

WHEREAS,
Borrowers and the other Credit Parties have also requested that Agent and the
Requisite Lenders amend the Credit Agreement in the manner, and on the terms
and conditions, provided for herein.

NOW
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt, adequacy and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1.             Definitions.  Capitalized
terms not otherwise defined herein shall have the meanings ascribed to them in
the Credit Agreement.

2.             Amendments to Credit Agreement.  Annex
F of the Credit Agreement is hereby amended as of the Financial Covenant
Effective Date (as hereinafter defined) by:

(a)           Deleting the ratio set forth opposite “December 31,
2005” in clause (a) thereof in its entirety and replacing it with “.73”;

(b)           Deleting the number set forth opposite “December 31,
2005” in clause (b) thereof in its entirety and replacing it with “$42,516,000”;
and

2

(c)           Deleting the ratio set forth opposite “December 31,
2005” in clause (d) thereof in its entirety and replacing it with “5.95”.

3.             Clondiag Consent.  As of the
Fourth Amendment Effective Date (as hereinafter defined), Agent and Requisite
Lenders hereby consent to the consummation of the Clondiag Stock Purchase and
the Stock Issuance in accordance with the Purchase Agreement and related
documentation previously provided to and approved by Agent (the “Draft
Purchase Documents”) and agree that the consummation of the Clondiag Stock
Purchase and the other transactions contemplated by the Draft Purchase
Documents, and the consummation of the Stock Issuance, in each case on or
before March 3, 2006, shall not constitute a breach of the Credit Agreement or
the other Loan Documents; provided, that, the Credit Parties do not
expend any cash or other consideration in connection with the Clondiag Stock
Purchase other than (i) for costs and expenses not to exceed $200,000 in the
aggregate, and (ii) pursuant to the Purchase Agreement (A) the Clondiag Closing
Date Consideration to be paid on Completion, (B) the CBG Consideration to be
paid on Completion II, (C) the Clondiag Payoff Amount to be paid on Completion,
(D) the Clondiag Working Capital Payments to be paid on or about March 20, 2006;
provided, the Clondiag Working Capital Payments shall not exceed
€1,100,000 in the aggregate and provided, further that the cash
portion of the Clondiag Working Capital Payments shall not exceed an aggregate
amount equal to the amount of personal wage taxes plus social taxes payable by
the employees receiving the Clondiag Share Contribution Payment, (E) the amount
of the Earnout Payment at the time the conditions to the payment of the Earnout
Payment (or a portion thereof) have been met under the Purchase Agreement; provided,
that such payments shall be payable solely in Stock of Innovations except as
required pursuant to the second paragraph of Section 2.3 of the Purchase
Agreement, (F) the Make Whole Payment, if any, to be paid on or about December 29,
2006, and (G) the Budget Payment to be paid in accordance with Section 4.2 of
the Purchase Agreement.

4.             Agreement by Borrowers and Other Credit Parties
Regarding Clondiag Stock Purchase.  The Borrowers
and each of the other Credit Parties hereby acknowledge and agree that, on or
prior to the Fourth Amendment Effective Date (or on or prior to such other date
as may be expressly provided below):

(a)           Satisfaction of Conditions. 
Agent shall have received evidence satisfactory to Agent that each of
the conditions precedent to a Permitted Acquisition set forth in Section
6.1(ii) — (xv) of the Credit Agreement have been satisfied in connection
with the Clondiag Stock Purchase (other than the conditions set forth in Sections
6.1(iv), (v), (ix) and (xv), which are hereby waived).

(b)           Joinder.  Within sixty
(60) days of the Fourth Amendment Effective Date or such longer period as Agent
shall consent to in its sole discretion, Agent shall have received a joinder
agreement, in form and substance satisfactory to Agent, duly executed by

 

3

Clondiag pursuant to which, inter  alia,
Clondiag joins the Credit Agreement and the other Loan Documents as a Credit
Party.

(c)           Guaranty.  Within sixty
(60) days of the Fourth Amendment Effective Date or such longer period as Agent
shall consent to in its sole discretion, Agent shall have received a guaranty,
in form and substance satisfactory to Agent, duly executed by Clondiag,
pursuant to which Clondiag guaranties the Obligations of the European Credit
Parties under the Loan Documents.

(d)           Pledge Agreement.  Agent shall
have received (A) within sixty (60) days of the Fourth Amendment Effective Date
or such longer period as Agent shall consent to in its sole discretion, a
pledge of 67.45% of the issued and outstanding Stock of Clondiag (the “Clondiag
Completion Stock”) pursuant to a pledge agreement to be entered into
between Swissco and Lenders (the “Clondiag Pledge Agreement”) and (B)
within fifteen (15) days of Completion II, a pledge of 32.55% of the issued and
outstanding Stock of Clondiag (the “Clondiag Completion II Stock”)
pursuant to an amendment to the Clondiag Pledge Agreement.

(e)           Security Interest and Code Filings.

(i)         Within sixty (60) days of the Fourth Amendment
Effective Date or such longer period as Agent shall consent to in its sole
discretion, Clondiag shall grant a first priority perfected security interest
(subject to Permitted Encumbrances) in substantially all of its assets to
secure the Obligations of the European Credit Parties and execute all documents
and take all actions requested by Agent in connection therewith;

(ii)        Within sixty (60) days of the Fourth Amendment
Effective Date or such longer period as Agent shall consent to in its sole
discretion, Clondiag shall provide Control Letters from (A) all issuers of
uncertificated securities and financial assets held by Clondiag, (B) all
securities intermediaries with respect to all securities accounts and
securities entitlements of Clondiag, and (C) all futures commission agents and
clearing houses with respect to all commodities contracts and commodities
accounts held by Clondiag.

(f)            Cash Management.  Within sixty
(60) days of the Fourth Amendment Effective Date or such longer period as Agent
shall consent to in its sole discretion, Agent shall have received a pledge of
all bank accounts of Clondiag, in form and substance reasonably satisfactory to
Agent, duly executed and delivered by Clondiag, in accordance with the
requirements set forth in Section 1.8 and Annex C of the Credit
Agreement.

(g)           Schedules.  Within sixty
(60) days of the Fourth Amendment Effective Date or such longer period as Agent
shall consent to in its sole discretion, Agent shall have received updated
Schedules to the Credit Agreement and such other Loan Documents as may be
required in connection with the joinder of Clondiag, to reflect the joinder of
Clondiag to such agreements, in form and substance satisfactory to Agent; provided,
that such schedules shall not include material information not previously
disclosed to Agent in writing.

(h)           Organizational Documents and Good Standing. 
Agent shall have received a copy of Clondiag’s (i) organizational
documents and all amendments thereto and (ii) certificates of qualification to
conduct business in each jurisdiction where its ownership or lease of property
or the conduct of its business requires such qualification, each dated a recent
date and certified by the applicable authorized Governmental Authority.

(i)            Resolutions.  Agent shall
have received a copy of (i) resolutions of Swissco’s board of directors and, to
the extent required under applicable law, stockholders, approving and
authorizing the Clondiag Stock Purchase certified by an authorized officer of

4

Swissco, and (ii) concurrently with Clondiag’s joinder
to the Credit Agreement, resolutions of Clondiag’s board of directors approving
and authorizing the execution, delivery and performance of the Loan Documents
to which Clondiag is, or will be a party and the transactions to be consummated
in connection therewith, in each case, certified by an authorized officer of
Clondiag (after giving effect to the Clondiag Stock Purchase) as being in full
force and effect without any modification or amendment as of the Fourth
Amendment Effective Date or the date of joinder of Clondiag to the Credit
Agreement.

(j)            Incumbency.  Concurrently
with Clondiag’s joinder to the Credit Agreement, Agent shall have received a
signature and incumbency certificate of the officers of Clondiag executing any
Loan Document or Joinder thereto, certified by an officer of Clondiag as being
true, accurate, correct and complete in all respects.

(k)           Clondiag Purchase Documents. 
Agent shall have received (i) an executed copy of the Purchase
Agreement, together with all amendments thereto, and all documentation
delivered in connection therewith (all of which shall be in form and substance
reasonably satisfactory to Agent), certified by an authorized officer of
Innovations to be true and complete and in full force and effect as of the
Fourth Amendment Effective Date and (ii) a certificate of an authorized officer
of Innovations certifying as to the matters set forth in Exhibit A
hereto.

(l)            Payoff Letter.  Within 5
Business Days of the Fourth Amendment Effective Date or such longer period as
Agent shall consent to in its sole discretion, Agent shall receive evidence of
the repayment of the Outstanding Indebtedness.

(m)          Collateral Assignment of Clondiag Stock Purchase
Documents.  Upon Agent’s request, Agent shall have
received a collateral assignment of the rights (but not the obligations) of
Swissco and Innovations under the Purchase Agreement and other documentation
executed in connection with the Clondiag Stock Purchase.

(n)           Appointment of Agent for Service of Process. 
Within sixty (60) days of the Fourth Amendment Effective Date or such
longer period as Agent shall consent to in its sole discretion, Agent shall
have received evidence that the Connecticut office of CT Corporation has been
appointed as agent for service of process for Clondiag.

The Borrowers and each of
the other Credit Parties hereby acknowledge and agree that the failure to
satisfy any of the deliveries or conditions set forth above in this Section
4 on or prior to the date required as set forth above in connection with
each such delivery or condition, as applicable, shall constitute an immediate
Event of Default under the Credit Agreement.

5.             Covenants.

(a)           Swissco shall acquire the shares of Clondiag held by
CBG (the “CBG Purchase”) on or before August 31, 2006 and, at such time,
shall own one hundred percent (100%) of the outstanding equity of Clondiag.

(b)           Until such time Swissco has consummated the CBG
Purchase and owns 100% of the outstanding equity of Clondiag and
notwithstanding Clondiag’s status as a

5

Credit Party, no Credit Party shall (i) transfer any
assets or other property or make any loans to, or on behalf of, Clondiag other
than (A) as contemplated by Section 3 hereof, and (B) the Budget Payment, or
(ii) enter into or be a party to any transaction with Clondiag unless the requirements
of Section 6.4(a)(ii) of the Credit Agreement have been satisfied with
respect to such transaction.

(c)           The Credit Parties shall not amend the Draft Purchase
Documents or the executed Purchase Agreement, in each case in a manner which
adversely affects the Lenders without the prior written consent of Agent.  Any failure of the Credit Parties to comply
with this covenant (a) with respect to the Draft Purchase Documents shall
result in this Amendment becoming immediately null and void and of no further
force and effect and (b) with respect to the Purchase Agreement shall
constitute an immediate Event of Default under the Credit Agreement.

6.             Remedies.  This
Amendment shall constitute a Loan Document. 
The breach by any Credit Party of any representation, warranty, covenant
or agreement in this Amendment shall constitute an immediate Event of Default
hereunder and under the other Loan Documents.

7.             Representations and Warranties. 
To induce Agent and Requisite Lenders to enter into this Amendment, the
Credit Parties hereby, jointly and severally, represent and warrant that:

(a)           The execution, delivery and performance by each Credit
Party of this Amendment and the performance of the Credit Agreement, as amended
by this Amendment (the “Amended Credit Agreement”): (i) are within
such Person’s corporate, company or partnership power; (ii) have been (or
will be prior to execution thereof) duly authorized by all necessary corporate,
limited liability company or limited partnership action; (iii) do not
contravene any provision of such Person’s charter, bylaws or equivalent
constitutive documents or partnership or operating agreement, as applicable;
(iv) do not violate any law or regulation, or any order or decree of any
court or Governmental Authority; (v) do not conflict with or result in the
breach or termination of, constitute a default under or accelerate or permit
the acceleration of any performance required by, any indenture, mortgage, deed
of trust, lease, agreement or other instrument to which such Person is a party
or by which such Person or any of its property is bound; (vi) do not
result in the creation or imposition of any Lien upon any of the property of
such Person, other than a Lien in favor of Agent; and (vii) do not require
the consent or approval of any Governmental Authority or any other Person
except those which will have been duly obtained, made or complied with prior to
the Fourth Amendment Effective Date.

(b)           This Amendment has been duly executed and delivered by
or on behalf of each of the Credit Parties.

(c)           This Amendment and the Amended Credit Agreement constitutes
a legal, valid and binding obligation of each of the Credit Parties,
enforceable against each of them in accordance with its terms, except as
enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance or
transfer or other laws affecting creditors’ rights generally or by equitable
principals of general applicability.

6

(d)           No Default or Event of Default has occurred and is
continuing or would result after giving effect to the provisions of this Amendment.

(e)           No action, claim or proceeding is now pending or, to
the knowledge of any Credit Party, threatened against such Credit Party, at
law, in equity or otherwise, before any court, board, commission, agency or
instrumentality of any foreign, federal, state, or local government or of any
agency or subdivision thereof, or before any arbitrator or panel of
arbitrators, which (i) challenges any Credit Party’s right or power to
enter into or perform any of its obligations under this Amendment or any other
Loan Document to which it is or will be, a party, or the validity or
enforceability of this Amendment, the Amended Credit Agreement or any Loan
Document or any action taken thereunder, or (ii) has a reasonable risk of
being determined adversely to any Credit Party and that, if so determined,
could reasonably be expected to have a Material Adverse Effect after giving
effect to this Amendment.

(f)            The representations and warranties of the Credit
Parties contained in the Amended Credit Agreement and each other Loan Document
shall, after giving effect hereto, be true and correct on and as of (i) the
date hereof, and (ii) the Fourth Amendment Effective Date, in each case, with the
same effect as if such representations and warranties had been made on and as
of such date, except that any such representation or warranty which is
expressly made only as of a specified date need be true only as of such date.

8.             No Amendments/Waivers/Consents. 
Except as expressly provided herein (a) the Credit Agreement and the
other Loan Documents shall be unmodified and shall continue to be in full force
and effect in accordance with their terms, (b) the consents and agreements of
the Agent and Requisite Lenders set forth herein shall be limited strictly as
written and shall not constitute a consent or agreement to any transaction not
specifically described in connection with any such consent and/or agreement,
and (c) this Amendment shall not be deemed a waiver of any term or condition of
any Loan Document and shall not be deemed to prejudice any right or rights
which Agent or any Lender may now have or may have in the future under or in
connection with any Loan Document or any of the instruments or agreements
referred to therein, as the same may be amended from time to time.

9.             Affirmation of Obligations. 
Each of the Credit Parties hereby acknowledges, agrees and affirms (a)
its obligations under the Credit Agreement and the other Loan Documents, including,
without limitation, its guaranty obligations thereunder, (b) that such guaranty
shall apply to the Obligations in accordance with the terms thereof, (c) the
grant of the security interest in all of its assets pursuant to the Loan
Documents and (d) that such liens and security interests created and granted
are valid and continuing and secure the Obligations in accordance with the
terms thereof.

10.           Outstanding Indebtedness; Waiver of Claims. 
Each of Borrowers and the other Credit Parties hereby acknowledges and
agrees that as of February 24, 2006, (a) the outstanding balance of the
European Revolving Loan is $15,000,000, (b) the outstanding balance of the US
Revolving Loan is $0, (c) the outstanding balance of the US Term Loan is $0,
and (d) the outstanding balance of European Term Loan is $0.  Borrowers and each other Credit Party hereby
waive, release, remise and forever discharge Agent, Lenders and each other
Indemnified Person from any and all claims, suits, actions, investigations,
proceedings or demands arising out

7

of or in connection with the Credit Agreement
(collectively, “Claims”), whether based in contract, tort, implied or
express warranty, strict liability, criminal or civil statute or common law of
any kind or character, known or unknown, which any Borrower or any other Credit
Party ever had, now has or might hereafter have against Agent or Lenders which
relates, directly or indirectly, to any acts or omissions of Agent, Lenders or
any other Indemnified Person on or prior to the Fourth Amendment Effective
Date, provided, that no Borrower nor any other Credit Party waives any
Claim solely to the extent such Claim relates to Agent’s or any Lender’s gross
negligence or willful misconduct.

11.           Expenses.  Borrowers
hereby reconfirm their obligations pursuant to Section 11.3 of the
Credit Agreement to pay and reimburse Agent for all reasonable costs and
expenses (including, without limitation, reasonable fees of counsel) incurred
in connection with the negotiation, preparation, execution and delivery of this
Amendment and all other documents and instruments delivered in connection
herewith.

12.           Effectiveness.

(a)           Upon satisfaction in full in the judgment of Agent of
each of the following conditions, this Amendment shall be deemed effective as
of December 31, 2005 (the “Financial Covenant Effective Date”)

(i)         Amendment.  Agent shall
have received four (4) original signature pages to this Amendment, duly
executed and delivered by Agent, Requisite Lenders, and each of the Credit
Parties.

(ii)        Payment of Expenses.  Borrowers
shall have paid to Agent all costs, fees and expenses owing in connection with
this Amendment and the other Loan Documents and due to Agent (including,
without limitation, reasonable legal fees and expenses).

(iii)       Representations and Warranties. 
The representations and warranties of or on behalf of each of the Credit
Parties in this Amendment shall be true and correct on and as of the date
hereof.

(b)           Upon satisfaction in full in the judgment of Agent of
each of the conditions set forth in subsection (a) above and each of the
following conditions, the consents of Requisite Lenders set forth in Section 3
of this Amendment shall be deemed effective as of February 27, 2006 (the “Fourth
Amendment Effective Date”):

(i)         Representations and Warranties. 
The representations and warranties of or on behalf of each of the Credit
Parties in this Amendment shall be true and correct on and as of the date
hereof and the Fourth Amendment Effective Date.

(ii)        Due Diligence.  Agent shall
have completed its business and legal due diligence with respect to the
intellectual property of Clondiag with results reasonably satisfactory to
Agent.

(iii)       Borrowers shall have complied with Section 4(a), (h),
(k) and (m) of this Amendment.

8

13.           GOVERNING LAW.  THIS AMENDMENT
SHALL BE GOVERNED BY, AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
OF NEW YORK.

14.           Counterparts.  This Amendment
may be executed by the parties hereto on any number of separate counterparts
and all of said counterparts taken together shall be deemed to constitute one
and the same instrument.

[SIGNATURE PAGES FOLLOW]

9

IN
WITNESS WHEREOF, this Amendment has been duly executed as of the date first
written above.

	
   

  	
  BORROWERS

  
	
   

  	
   

  
	
   

  	
  WAMPOLE
  LABORATORIES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Duane L.
  James

  
	
   

  	
  Name:

  	
  Duane L. James

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  INVERNESS
  MEDICAL (UK) HOLDINGS

  LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Scott

  
	
   

  	
  Name:

  	
  David Scott

  
	
   

  	
  Title:

  	
  Chairman

  
				

 

	
   

  	
   

  	
  AGENT
  AND LENDERS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GENERAL ELECTRIC
  CAPITAL

  
	
   

  	
   

  	
  CORPORATION, as
  Agent and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Cosgrove

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MERRILL LYNCH
  CAPITAL, a division of Merrill Lynch Business Financial Services Inc., as a
  Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Illegible

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UBS AG, CAYMAN
  ISLANDS BRANCH, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L.
  Tavrow

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  
	
   

  	
   

  	
  Duly Authorized
  Signatory

  
	
   

  	
   

  	
   

  

 

The
following Persons are signatories to this Amendment in their capacity as Credit
Parties and not as Borrowers.

	
   

  	
  APPLIED BIOTECH,
  INC.

  
	
   

  	
  ADVANTAGE
  DIAGNOSTICS

        CORPORATION

  
	
   

  	
  FOREFRONT
  DIAGNOSTICS, INC.

  
	
   

  	
  INVERNESS
  MEDICAL INTERNATIONAL

  
	
   

  	
     HOLDING
  CORP.

  
	
   

  	
  INVERNESS
  MEDICAL INTERNATIONAL

  
	
   

  	
     HOLDING
  CORP. II

  
	
   

  	
  INVERNESS
  MEDICAL, INC.

  
	
   

  	
  INNOVATIONS
  RESEARCH, LLC

  
	
   

  	
  ISCHEMIA
  TECHNOLOGIES, INC.

  
	
   

  	
  IVC INDUSTRIES,
  INC.

  
	
   

  	
  ALPHA US
  ACQUISITION CORP.

  
	
   

  	
  OSTEX
  INTERNATIONAL, INC.

  
	
   

  	
  SELFCARE
  TECHNOLOGY, INC.

  
	
   

  	
  UNIPATH ONLINE,
  INC.

  
	
   

  	
  BINAX, INC.

  
	
   

  	
  INVERNESS
  MEDICAL — BIOSTAR INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Duane L.
  James

  
	
   

  	
  Name:

  	
  Duane L. James

  
	
   

  	
  Title:

  	
  Treasurer,
  Treasurer, Treasurer, Treasurer,

  
	
   

  	
   

  	
  Treasurer,
  Treasurer, Treasurer, Treasurer,

  
	
   

  	
   

  	
  Treasurer,
  Treasurer, Treasurer, Treasurer,

  
	
   

  	
   

  	
  Treasurer, Vice
  President, Treasurer,

  
	
   

  	
   

  	
  respectively

  
				

 

 

	
   

  	
  CAMBRIDGE
  DIAGNOSTICS IRELAND

     LIMITED

  
	
   

  	
  DMD,
  DIENSTLEISTUNGEN & VERTRIEB FÜR

     MEDIZIN UND DIAGNOSTIK GMBH

  
	
   

  	
  INVERNESS
  MEDICAL CANADA, INC.

  
	
   

  	
  INVERNESS
  MEDICAL EURASIA LIMITED

  
	
   

  	
  INVERNESS
  MEDICAL FRANCE SAS

  
	
   

  	
  INVERNESS
  MEDICAL GERMANY GMBH

  
	
   

  	
  ORGENICS
  INTERNATIONAL HOLDINGS BV

  
	
   

  	
  SCANDINAVIAN
  MICRO BIODEVICES APS

  
	
   

  	
  STIRLING MEDICAL
  INNOVATIONS LIMITED

  
	
   

  	
  INVERNESS
  MEDICAL SWITZERLAND GMBH

  
	
   

  	
  UNIPATH
  DIAGNOSTICS GMBH

  
	
   

  	
  VIVA DIAGNOSTIKA
  - DIAGNOSTISCHE

     PRODUKTE GMBH

  
	
   

  	
  INVERNESS
  MEDICAL JAPAN, LTD.

  
	
   

  	
  INVERNESS
  MEDICAL INNOVATIONS, INC.

  
	
   

  	
  INVERNESS
  MEDICAL IBERICA, S.A.

  
	
   

  	
  BOSWELL
  INVESTMENTS, S.L.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Duane L.
  James

  
	
   

  	
  Name:

  	
  Duane L. James

  
	
   

  	
  Title:

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Authorized Person,

  
	
   

  	
   

  	
  Authorized
  Person, Treasurer, Authorized

  
	
   

  	
   

  	
  Person ,
  Authorized Person, respectively

  
	
   

  	
   

  	
   

  
	
   

  	
  INVERNESS
  MEDICAL INVESTMENTS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jay McNamara

  
	
   

  	
  Name:

  	
  Jay McNamara

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  INVERNESS
  MEDICAL CANADA, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Doug Shaffer

  
	
   

  	
  Name:

  	
  Doug Shaffer

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  UNIPATH LIMITED

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Scott

  
	
   

  	
  Name:

  	
  David Scott

  
	
   

  	
  Title: 

  	
  Chairman

  
				

 

Exhibit A

No Credit Party
and, to the Credit Parties’ knowledge, no other Person party thereto is in
default in the performance or compliance with any provisions of the Purchase
Agreement.  The Purchase Agreement
complies with, and the Clondiag Stock Purchase has been consummated in
accordance with, all applicable laws. 
The Purchase Agreement is in full force and effect as of the date hereof
and has not been terminated, rescinded or withdrawn.  All requisite approvals by Governmental
Authorities having jurisdiction over any Credit Party and other Persons referenced
therein with respect to the consummation of the Clondiag Stock Purchase have
been obtained, and no such approvals impose any conditions to the consummation
of the Clondiag Stock Purchase or, other than as described in the Purchase
Agreement, to the conduct by any Credit Party of its business thereafter.  To the best of each Credit Party’s knowledge,
none of the Clondiag Chip Technologies GmbH’s representations or warranties in
the Purchase Agreement contain any untrue statement of a material fact or omit
any fact necessary to make the statements therein not misleading.  Each of the representations and warranties
given by each applicable Credit Party in the Purchase Agreement is true and
correct in all material respects, and, notwithstanding anything contained in
the Purchase Agreement to the contrary, such representations and warranties of
the Credit Parties are incorporated into the Credit Agreement by delivery of
this certificate and shall, solely for purposes of the Credit Agreement and the
benefit of Agent and Lenders, survive the consummation of the Clondiag Stock
Purchase; provided that a breach by any of the Credit Parties of any such
representations and warranties so incorporated and as to which a similar
representation and warranty is not independently made in the Credit Agreement
shall not constitute a breach of the Credit Agreement unless such breach causes
any such representation and warranty to be materially inaccurate.Exhibit 10.37

 

LEASE BETWEEN

 

THERMO BIOSTAR, INC., A DELAWARE
COPRORATION

 

AND

 

THE PARK AT CTC, LLC, A COLORADO
LIMITED LIABILITY COMPANY

 

 

TABLE OF CONTENTS

 

	
  SECTION 1

  	
  USE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2

  	
  TERM

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3

  	
  COMPLETION OF PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4

  	
  RENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5

  	
  TAXES AND OPERATING COST ADJUSTMENT FORMULA

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6

  	
  HOLDING OVER

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7

  	
  BUILDING SERVICES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 8

  	
  CONDITION OF PREMISES AND BUILDING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 9

  	
  USE OF LEASED PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 10

  	
  COMPLIANCE WITH LAW

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 11

  	
  ALTERATIONS AND REPAIRS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 12

  	
  ABANDONMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 13

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 14

  	
  SIGNS AND ADVERTISING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 15

  	
  DAMAGE TO PROPERTY, INJURY TO PERSONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 16

  	
  TENANT’S INSURANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 17

  	
  DAMAGE OR DESTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 18

  	
  ENTRY BY LANDLOR

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 19

  	
  DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 20

  	
  TAXES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 21

  	
  EMINENT DOMAIN

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 22

  	
  SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST

  	
   

  

 

 

	
  SECTION 23

  	
  WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 24

  	
  SUBROGATION

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 25

  	
  PLATS AND RIDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECITON 26

  	
  SALE BY LANDLORD

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 27

  	
  RIGHT OF LANDLORD TO PERFORM

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 28

  	
  ATTORNEY’S FEES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 29

  	
  ESTOPPEL CERTIFICATE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 30

  	
  NOTICE

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 31

  	
  RIGHTS RESERVED

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 32

  	
  REAL ESTATE BROKER

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 33

  	
  MISCELLANEOUS PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 34

  	
  SUCCESSORS AND ASSIGNS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 35

  	
  QUIET ENJOYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 36

  	
  RECORDING

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 37

  	
  RELIANCE BY LANDLORD

  	
   

  
	
   

  	
   

  	
   

  
	
  SECITON 38

  	
  OPTION TO EXTEND

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 39

  	
  SECURITY DEPOSIT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 40

  	
  REFERENCE TO RIDER

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  COMMENCEMENT DATE AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B-1

  	
  SITE PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B-2

  	
  INITIAL PREMISES & CONTIGUOUS PREMISES

  	
   

  

 

 

	
  EXHIBIT B-3

  	
  PLANS AND DRAWINGS

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT C

  	
  BASE BUILDING CONDITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT D

  	
  PROJECT SCHEDULE

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT E

  	
  WORK LETTER

  	
   

  
	
   

  	
   

  	
   

  
	
  EXHIBIT F

  	
  GUARANTY

  	
   

  

 

 

LEASE

 

THIS LEASE made this 25th day of June, 2001 (“Effective
Date”), between Thermo BioStar, Inc., a Delaware corporation (“Tenant”),
and The Park at CTC, LLC, a Colorado limited liability company (“Landlord”).

 

WITNESSETH:

 

DEMISE

 

Landlord hereby leases to Tenant and Tenant herby
lessees from Landlord approximately 75,000 rentable square feet (the “Premises”
or, alternative, the “Leased Premises”) to be located with that certain building
to be constructed by Landlord, comprised of a total of approximately 105,000
rentable square feet as depicted on the site plan (“Site Plan”) attached as Exhibit B-1
hereto and made a part hereof, more commonly known as 331 South 104th
Ave., Louisville, CO 80027 (the “Building”). The Building will be situated on
land described as Lots 3 & 4, block 3, The Park at CTC, City of Louisville,
County of Boulder, State of Colorado (the “Property”). Landlord also grants to
Tenant a non-exclusive right, subject to the provisions of this Lease, to use
all appurtenances to the Property, including, but not limited to, any plazas,
common areas, walks, parking areas, driveways, or other areas in the Building
or on the Property designated by Landlord for the exclusive or non-exclusive
use of the tenants of the Building.

 

On the Initial Premises Commencement Date (as
defined in Section 2), the Premises will be comprised of approximately
60,000 rentable square feet (the “Initial Premises”), as shown on Exhibit B-2
attached hereto and made a part hereof. From and after the Contiguous Premises
Commencement Date (as defined in Section 2), the Premises shall also
include approximately 15,000 rentable square feet within the area which is
cross-hatched on Exhibit B-2 (the “Contiguous Premises” or “Contiguous
Space”). Landlord acknowledges and agrees that Tenant has not yet designated
the exact area which is to comprise the Contiguous Space, and that Tenant shall
have the right to designate which portion of the area shown as cross-hatched on
Exhibit B-2 shall comprise the Contiguous Space by providing such
designation to Landlord in writing no later than January 1, 2002. Until Tenant
provides such written designation to Landlord, all portions which are
designated as the Contiguous Space on the attached Exhibit B-2
(i.e., all portions which are cross-hatched) shall be included within any
obligations of Landlord hereunder. Without limiting the foregoing, Section 3.4
shall apply to all areas which are shown as cross-hatched on Exhibit B-2.

 

Landlord has estimated the Rentable Square Fee (RSF)
and Useable Square Feet (USF) as used in its Lease in good faith pursuant to
building and site plans for the Property. Upon issuance of a Temporary
Certificate of Occupancy for the Initial Premises, Landlord shall have the
Building and the Premises measured at Landlord’s cost, and any changes to
rentable square footage calculations shall be confirmed in Exhibit A,
Lease Commencement Agreement, attached hereto and made a part hereof, subject
to approval by Landlord and Tenant, and such calculations shall be the final
calculations for the size of the Building and Premises. The measurement of the
Building and Premises shall be in accordance with the standards of the Building
Owners and Managers Association (BOMA), or other such industry standards as may
be approved by Landlord and Tenant. It is also understood and agreed that there
shall be no load factor or common area factor applied to the Premises (i.e.,
RSF = USF for the purposes of this Lease).

 

The Lease is upon and subject to the terms,
conditions, and covenants set forth below and Landlord and Tenant covenant as a
material part of the consideration for this Lease to keep and perform each and
all of the terms, conditions, and covenants by it to be kept and performed and
that this Lease is made upon the condition of such performance.

 

SECTION 1

 

USE

 

1.01                           Use of Premises. Tenant
shall have the right to use the Premises for administrative offices,
laboratory, research and development, operations, manufacturing, and uses
incidental thereto, and for any other purpose allowed by law, provided that
such uses comply with all zoning restrictions. 

 

 

Landlord
hereby represents and warrants that the Building and the Property comply with
office/industrial zoning regulations in the Colorado Tech Center in Louisville,
Colorado.

 

SECTION 2

 

TERM

 

2.01                           Term. The term (“Term”)
of this Lease shall commence on the Initial Premises Commencement Date (as
defined below) and shall expire on April 30, 2009 (“Expiration Date”).

 

2.02                           Commencement Date for Initial Premises. The commencement date of the Term with
respect to the Initial Premises (“Initial Premises Commencement Date”) shall be
on the date that is the later to occur of the following:  (i) the effective date of a Temporary
Certificate of Occupancy of the Initial Premises, provided (a) Landlord
has substantially completed the Base Building Conditions (as defined below), (b) Landlord
has substantially completed the Tenant Improvements (as defined in the Work
Letter attached as Exhibit E hereto and made a part hereof (“Work
Letter”)), (c) all items required for a permanent Certificate of Occupancy
are completed by landlord in a reasonable amount of time and said items do not
materially impact Tenant’s occupancy, use, and enjoyment of the Building,
Initial Premises or Property all as reasonably determined by Tenant, and (d) Tenant
is able to commence its intended business operations within the Initial
Premises, subject only to installation by Tenant of its personal property, or (ii) April 15,
2002.

 

(a)                                  Damages for Delay. In the event the Initial Premises
Commencement Date has not occurred on or before April 19, 2002 then,
except as otherwise provided herein, from and after the Initial Premises
Commencement Date, Tenant shall receive an abatement of Rent (as defined in Section 4.02)
for the number of days equal to the number of days between April 19, 2002
and the Initial Premises Commencement Date. By way of example, if the Initial Premises
Commencement Date occurs on April 25, 2002, then Tenant shall receive an
abatement of Rent until May 1, 2002. The parties hereby agree that the amount
of any rental abatement which Tenant shall receive pursuant to this section is
a reasonable  estimation of costs and damages
which will be incurred by Tenant in the event that the Initial Premises
Commencement date has not occurred by April 19, 2002.

 

(b)                                 Termination Right. Notwithstanding any provision of this Lease
to the contrary, if the Initial Premises Commencement Date has not occurred on
or before July 15, 2002 for any reason, then Tenant shall have the right
to terminate this Lease by providing written notice to Landlord at no penalty
or cots to Tenant. Upon Landlord’s receipt of Tenant’s notice, this Lease shall
terminate, and Landlord shall promptly return to Tenant any sums previously
deposited with Landlord.

 

(c)                                  Tenant Delay. Should Tenant, through  the actions of Tenant, Tenant’s employees,
agents, contractors, subcontractors, guests, licensees, or invitees, impede or
delay Landlord’s completion of the Base Building or the Tenant Improvements
(each, a “Tenant Delay”), then the Initial Premises Commencement Date shall be
the date that the same would have occurred but for the Tenant Delay. If
Landlord has a reasonable basis to believe there is a condition constituting a
Tenant Delay, Landlord shall promptly provide written notice to Tenant setting
forth in detail the basis for such belief, and any reasonable actions which
Landlord believes should be taken by Tenant in order to cure the condition. If
Tenant reasonably concurs with Landlord, then Tenant shall promptly perform the
actions contained in Landlord’s notice. Tenant shall be given an opportunity to
cure any alleged delay in Landlord’s construction of the Base building or Tenant
Improvements. No action of failure to act by Tenant shall constitute a Tenant
Delay as defined herein unless Landlord has provided the written notice as set
forth above, and (i) Tenant has failed to perform any obligation within
the time period specified in the Project Schedule (as defined below) or (ii) if
no time period is specified in the Project Schedule for the relevant
action item, then within ten (10) business days from written notice from Landlord
detailing the action required of Tenant together with any documentation
necessary to enable Tenant to perform the same.

 

(d)                                 City Delay. If the Initial Premises Commencement Date is impeded or delayed due
to a failure of the City of Louisville (the “City”) to act within the estimated
timeframes set forth in the construction schedule (“Project Schedule”)
attached as Exhibit D hereto and made a part hereof (each a “City
Delay”), then the length in days of such City Delay shall be deducted from the
number of days of any rental abatement which Tenant is otherwise entitled to
under Section 2.02(a) hereof. By way of example, if there is a City
Delay equal to three (3) days, and the Initial Premises Commencement Date
occurs on April 25, 2002, then Tenant shall be entitled to an abatement of
Rent pursuant to Section 2.03(a) until April 28, 2002 (i.e., abatement
for six days for each day after April 19, 2002 that the Initial Premises 

 

 

Commencement
Date did not occur, reduced by three days for the City Delay). If Landlord
has  a reasonable basis to believe there
is a condition constituting a City Delay, Landlord shall promptly provide
written notice to Tenant setting forth in detail the basis for such belief and
evidence of Landlord’s efforts to compel the City to perform its duties within
the time periods set forth in the Project Schedule. If Landlord has failed to
submit to the City any plans or other documentation necessitated by the City
within the time periods set forth in the Project Schedule, then Landlord shall
not be entitled to claim there has been a City Delay. No City Delay shall have
occurred as defined herein unless Tenant reasonably agrees in writing with the
explanation and length of the alleged City Delay set forth in Landlord’s notice.
If Tenant disagrees with Landlord’s notice of an alleged City Delay then Tenant
shall use reasonable efforts to specify in writing the basis for such
disagreement within ten (10) days of receipt of Landlord’s notice, and in
any event, Tenant shall specify in writing the specific basis for any such disagreement
within forty (40) days after receipt of Landlord’s notice. Notwithstanding the
foregoing, if Tenant fails to respond to Landlords’ notice of an alleged City
Delay within ten (10) business days of receipt of such notice stating
whether or not Tenant agrees or disagrees as to the existence of any alleged
City Delay, then Tenant shall be deemed to concur with Landlord’s notice.

 

(e)                                  Early Occupancy. Tenant shall have the right to occupy the Initial
Premises for thirty (30) days prior to the Initial Premises Commencement Date (“Initial
Premises Early Occupancy Period”) for the purpose of installing its equipment,
furniture and other personal property, and communications wiring. Landlord
shall notify Tenant ion writing of the anticipated Initial Premises
Commencement Date within sixty (60) days from such estimated date. During the
Initial Premises Early Occupancy Period, Tenant shall have the right to occupy
the Initial Premises without the obligation to pay Rent, but subject to all
other terms and provisions of this Lease. Tenant agrees to reasonably cooperate
with Landlord’s construction manager so as to not unreasonably interfere with
the completion of the Tenant Improvements or the Base Building during the Initial
Premises Early Occupancy Period. If Landlord reasonably believes that Tenant’s
activities during the Early Occupancy Period are interfering with Landlord’s
construction of the Base Building or the Tenant Improvements, then Landlord
shall promptly notify Tenant thereof, and Tenant shall immediately adjust its
activities within the Initial Premises to accommodate Landlord’s performance of
the Tenant Improvements or Base Building, as applicable. If Tenant complies
with this section, then in no event shall Tenant’s occupancy of the Initial
Premises be deemed a Tenant Delay as defined in Section 2.02(c).

 

2.03                           Contiguous Space. In
the event that Tenant has elected for Landlord to perform the Tenant
Improvements within the Contiguous Space, then the commencement date of the
Term with respect to the Contiguous Space shall be the later to occur of: (i) the
date that Landlord delivers the Contiguous Space to tenant in a good and
broom-clean condition with the Tenant Improvements for the Contiguous Space
substantially completed in conformance with the Work Letter, or (ii) April 15,
2004 (“Contiguous Space Commencement Date”). Notwithstanding the forgoing, if
Tenant elects to construct the Tenant Improvements as provided in Section 3.02,
then the Contiguous Space Commencement Date shall be the later to occur of: (i) the
date  that Landlord delivers the
Contiguous Space in a good and broom-clean condition to Tenant, or (ii) March 1,
2004. If Tenant has elected to perform the Tenant Improvements for the
Contiguous Space as provided in Section 3.02, then Tenant shall have the
right to occupy the Contiguous Space for forty-five (45) days after the
Contiguous Space Commencement Date without the obligation to pay Rent, but
subject to all other terms and provisions of this Lease.

 

(a)                                  Damages for Delay. In the event Tenant has elected that
Landlord is to perform the Tenant Improvements in the Contiguous Space, and the
Contiguous Space Commencement Date has not occurred on or before April 15,
2004, then from and after the Contiguous Space Commencement Date, Tenant shall
receive an abatement of Rent attributable to the Contiguous Space for the
number of days equal to the number of days between April 15, 2004 and the
Contiguous Space Commencement Date. By way of example, if the Contiguous Space
Commencement Date occurs on April 20, 2004, then Tenant shall receive an
abatement of Rent until April 25, 2004. The parties hereby agree that the
amount of any rental abatement which Tenant shall receive pursuant to this section is
a reasonable estimation of costs and damages which will be incurred by Tenant
in the event that Contiguous Space Commencement Date has not occurred by April 15,
2004 where Landlord is to perform the Tenant Improvements. In the alternative,
if Tenant has elected to perform the Tenant improvements in the Contiguous
Space, and the Contiguous Space Commencement Date has not occurred on or before
March 1, 2004, then from and after the date that is forty-five (45) days
after the Contiguous Space Commencement Date, Tenant shall receive an abatement
of Rent attributable to the Contiguous Space for the number of days equal to
the number of days between March 1, 2004 and the Contiguous Space
Commencement Date. By way of example, if the Contiguous Space Commencement Date
occurs on March 5, 2004, then Tenant shall receive an abatement of Rent
until April 23, 2004 (i.e., forty-five days after the Contiguous Space
Commencement Date plus four days for 

 

 

each
day after March 1, 2004 that the Contiguous Space Commencement Date has
not occurred). The parties hereby agree that the amount of any rental abatement
which Tenant shall receive pursuant to this section is a reasonable
estimation of costs and damages which will be incurred by Tenant in the event
that the Contiguous Space Commencement Date has not occurred by March 1,
2004 where Tenant is to perform the Tenant Improvements within the Contiguous
Space.

 

(b)                                 Termination Right. Notwithstanding any provision of this Lease
to the contrary, if the Contiguous Space Commencement Date has not occurred on
or before August 1, 2004 for any reason, then Tenant shall have the right
to terminate its obligation to lease the Contiguous Space by providing written
notice thereof to Landlord. Upon Landlord’s receipt of Tenant’s notice, Tenant’s
obligation to lease the Contiguous Space shall terminate and be of no further
force or effect. Landlord hereby acknowledges that its failure to deliver the
Contiguous Space to Tenant as provided herein shall cause Tenant to incur
damages, including costs and expenses associated with leasing a new facility
comparable to the Contiguous Space. Therefore, if Tenant elects to terminate
its obligation to lease the Contiguous Space as provided herein, then Landlord
shall promptly pay to Tenant upon demand all costs incurred by Tenant in
leasing and moving to an alternative space rather than the Contiguous Space,
including, without limitation, brokers’ fees, reasonable attorneys’ fees, and
any differential between the Base Rent for the Contiguous Space and the rental
amount for the alternative space. The parties acknowledge and agree that such
sums represent a reasonable estimation of Tenant’s damages due to Landlord’s
failure to perform hereunder.

 

SECTION 3

 

COMPLETION OF THE PREMISES

 

3.01                           Base Building. Landlord
shall complete all of the base building conditions (“Base Building Conditions”)
described in Exhibit C attached hereto and made apart hereof on or
before April 15, 2002. Landlord shall complete the remainder of the
Building shell and all site improvements for the Property in conformance with
the plans and drawings attached as Exhibit B-3 hereto and made a
part hereof (“Site Improvements”) on or before July 1, 2002. The Base Building
Conditions and Site Improvements are collectively defined herein as the “Base
Building”. Landlord shall perform all work in connection with the Base Building
in a good and workmanlike manner. In the event that Landlord has failed to
substantially complete the Site Improvements by July 1, 2002, then Tenant
shall receive an abatement of Rent until the date the Site improvements are
substantially completed. Notwithstanding the provisions of this Lease regarding
City Delay and other matters requiring City of Louisville approval, Landlord
and Tenant acknowledge that the Colorado Tech Center General Improvement
District (CTCGID), which the Building is included within, is required to
install an upgraded lift station (“Lift Station”) for the purpose of pumping
waste water/sewage away from the Property, prior to issuance of a Certificate
of Occupancy by the City of Louisville. In the event the Lift Station is not
under construction as of November 15, 2001, Landlord, at its sole cost,
shall construct its own waste removal system on the Property (“Ejection System”)
in order to obtain final approval – and, at a minimum, issuance of a Temporary
Certificate of Occupancy from the City of Louisville in order to meet the
Project Schedule (Exhibit D) and the planned occupancy date as
otherwise described in this Lease. In the event the Initial Premises
Commencement Date has not occurred on or before April 19, 2002 as a result
of the failure to obtain a Temporary Certificate of Occupancy due to the lack
of approval, construction, and/or completion of the Lift Station or the
Ejection System as the case may be, then from and after the Initial Premises
Commencement Date, Tenant shall receive two (2) days of abatement of Rent
(as defined in Section 4.02) for the number of days equal to the number of
days between April 19, 2002 and the Initial Premises Commencement Date. By
way of example, if the Initial Premises Commencement Date occurs on April 25,
2002, then Tenant shall receive an abatement of Rent until May 7, 2002. The
parties hereby agree that the amount of any rental abatement which Tenant shall
receive pursuant to this section is a reasonable estimation of costs and
damages which will be incurred by Tenant in the event that the Initial Premises
Commencement Date has not occurred by April 91, 2002 as a result of the
failure to complete the Lift Station or Ejection System. Notwithstanding any
other provision of this Lease to the contrary, in no event shall any period of
time related to processing governmental approvals of the Lift Station or
Ejection System be categorized as a City Delay.

 

3.02                           Tenant Improvements.
Landlord shall construct the Tenant Improvements in the Initial Premises in a
good and workmanlike manner in conformance with the Work Letter. Tenant shall
have the right to either (i) require Landlord to perform the Tenant
Improvements in the Contiguous Space in which event the terms and provisions of
the Work Letter shall apply to the performance of the same except that dates
shall be adjusted per diem to reflect the dates then in effect for the
Contiguous Space, or (ii) elect to perform the Tenant Improvements
directly.

 

 

3.03                           Improvement Allowance.
Landlord shall pay an improvement allowance (“Improvement Allowance”) totaling
$35.10 per rentable square foot of the Premises. Upon mutual execution of this
Lease, that portion of the Improvement Allowance based on the 60,000 rentable
square feet of the Initial Premises (“Initial Premises Improvement Allowance”)
shall be immediately available for use in the payment of the Tenant
Improvements in the Initial Premises in conformance with the Work Letter. That
portion of the Improvement Allowance based on the 15,000 rentable square feet
of the Contiguous Space (“Contiguous Space Improvement Allowance”) shall be
available for use in the payment of the Tenant Improvements in the Contiguous
Space: (i) immediately if used in conformance with Section 3.04
hereof, (ii) in conformance with the timing (as adjusted per Section 3.02)
set forth in the Work Letter if Tenant elects to require Landlord to construct
the Tenant Improvements in the Contiguous Space, or (iii) upon the
Contiguous Space Commencement Date as a direct payment to the Tenant as such
costs are incurred by Tenant if Tenant elects to construct the Tenant
Improvements in the Contiguous Space. The Improvement Allowance shall be in
addition to work completed at Landlord’s cost for construction of the Base
Building. There shall be no construction management and/or bonding fees charged
against the Improvement Allowance on behalf of Landlord or Landlord’s
employees, agents, or contractors. The Improvement Allowance includes
programming, space planning, construction documentation, engineering,
construction, change orders, cabling, consultants, project management, and
other construction related costs. Tenant has engage CRESA Partners (“CRESA”)
for project management for construction of the Tennant Improvements. CRESA’s
fee will be paid from the Improvement Allowance, or is to be paid by Tenant, at
Tenant’s discretion. Tenant retains the right to engage other consultants,
architects, engineers, contractors, and vendors at its discretion, the cost of
which, if within the above guidelines, may be deducted form the Improvement
Allowance or paid separately by Tenant, in Tenant’s sole discretion.

 

3.04                           Lease of Contiguous Space to Third Party Tenants. Landlord shall have the right to lease the
Contiguous Space to third party tenant(s) until February 28, 2004. While
the Contiguous Space is leased to third parties it shall be separately demised
from the Initial Premises and shall be accessible only by an entrance or
entrances separate from the Initial Premises. Landlord shall implement
reasonable safety precautions to insure that any tenants of the Contiguous
Space have no right to access to the Initial Premises. Prior to entering into
any lease agreement with any proposed tenant(s) of the Contiguous Space, Landlord
shall obtain Tenant’s prior written consent to the layout, plans and proposed
use for such tenant(s), which consent shall not be unreasonably conditioned,
withheld or delayed. Landlord shall not lease any portion of the Contiguous
Space to tenant(s) who are direct competitors of Tenant, or to entities whose
use or occupancy may negatively impact the use of enjoyment of the Premises by
Tenant, in Tenant’s reasonable discretion. Landlord shall not enter into any
lease agreement with respect to the Contiguous Space with any third party
tenant(s) where the term thereof expires on the date later than February 28,
2004.

 

(a)                                  Tenant Improvements in Contiguous Space. Tenant agrees to allocate a portion of the
Contiguous Space Improvement Allowance for tenant improvements within the
Contiguous Space for third party tenants, subject to the terms and conditions
of this section. Landlord shall submit all space plans and cost estimates for
tenant improvements within the Contiguous Space for third party tenants to Tenant
for Tenant’s prior review and approval. Tenant shall have the right to
disapprove in its sole discretion any such improvements and any expenditure
from the Contiguous Space Improvement Allowance where such improvements and/or
design needs of Tenant for the Contiguous Space. All other costs associated
with any lease by Landlord and/or use by third parties of the Contiguous Space,
including but not limited to the cost of demising the Building for such
purposes, construction of any common areas required for multi-tenant use
(hallways, access, egress, bathrooms, etc.), improvements installed for such
third parties and/or created for use and purposes, construction and/or
demolition of improvements required within the Building or the Premises
resulting from the design and construction of the Building and/or the Premises
to accommodate Landlord and/or such intended third parties, and demolition and
construction required to cause the Building, Premises, or Contiguous Space to
be brought back to the condition and layout previously approved by Tenant in
preparation for Tenant Improvements for Tenant within the Contiguous Space,
shall be the sole cost, expense and obligation of Landlord.

 

SECTION 4

 

RENT

 

4.01                           Base Rent. Tenant
agrees to pay Landlord Base Rent, applicable to the phased occupancy of the
Premises, on a monthly basis according to the following rent schedule:

 

 

	
  Month

  	
   

  	
  Base Rent/RSF/YEAR

  	
   

  
	
  Initial
  Premises Commencement Date - Month 12

  	
   

  	
  $

  	
  12.95

  	
   

  
	
  Mo. 13 – Mo
  24

  	
   

  	
  $

  	
  13.30

  	
   

  
	
  Mo. 25 – Mo.
  36

  	
   

  	
  $

  	
  13.92

  	
   

  
	
  Mo. 37 – Mo.
  48

  	
   

  	
  $

  	
  14.17

  	
   

  
	
  Mo. 49 – Mo.
  60

  	
   

  	
  $

  	
  14.50

  	
   

  
	
  Mo. 61 – Mo
  72

  	
   

  	
  $

  	
  16.28

  	
   

  
	
  Mo. 73 –
  Expiration Date

  	
   

  	
  $

  	
  16.85

  	
   

  

 

On
or prior to the Initial Premises Commencement Date, Tenant shall pay Base Rent
and estimated Operating Expenses for the first month of the Term.

 

4.02                           No Offsets. Except
as otherwise provided herein, the Base Rent, Tenant’s Proportional Share of
Taxes and Operating Costs, and all other sums or charges required by this Lease
to be paid by Tenant to Landlord (all of which are sometimes collectively
referred to herein as “Rent”) shall be paid to Landlord without deduction or
offset, in lawful money of the United States of America, at the office of O’Connor
Development 6685 Gunpark Drive, Suite 210, Boulder, Colorado 80301 or to
such other person or at such other place as Landlord may from time to time
designate in writing.

 

4.03                           Interest on Late payments. Any Rent or other amount due from Tenant to Landlord under this Lease
not paid within five (5) days of when due shall bear interest from the
date due, computed on a daily basis, until the date paid, at the rate of one
and one-half percent  (1 1⁄2%) per month
until paid, but the payment of the interest shall not excuse nor cure any
default by Tenant under this lease.

 

4.04                           Late Payment Charge.
Further, and notwithstanding the interest charges provided for in the preceding
subsection 4.03, if any Rent or other amounts owing hereunder are not paid
within five (5) days of when due, Landlord and Tenant agree that Landlord
will incur additional administrative and financial expenses and inconveniences,
the amount of which will be difficult if not impossible to determine.
Accordingly, Tenant shall pay to Landlord an additional one-time late charge
for any late monthly payment in the amount of five percent (5%) of the amount
of the payment; provided, however, that no one-time late charge shall apply
until after ten (10) days written notice by Landlord delivered to Tenant
pursuant to the notice provisions in Section 30 herein.

 

SECTION 5

 

TAXES AND OPERATING COST
ADJUSTMENT FORMULA

 

5.01                           Taxes. The Rent
payable by Tenant shall be increased by the amount of Tenant’s Proportional
Share of the Taxes on the Property. “Tenant’s Proportional Share” as used in
this Lease shall be calculated by dividing the number of rentable square feet
of the Premises then occupied by Tenant by the number of rentable square feet
of the Building. For example, on the Initial Premises Commencement Date, Tenant’s
Proportional Share shall be approximately 57.14%, and on the Contiguous Space
Commencement Date, Tenant’s Proportional Share shall be approximately 71.4%. In
determining the amount of Taxes for any calendar year, the amount of special
assessments to be included shall be limited to the amount of the installment
(plus any interest payable thereon) of such special assessment which would have
been required to have been paid during such calendar year if Landlord had
elected to have the special assessment paid over the maximum period of time
permitted by law, if the election is available to Landlord. All reference to
Taxes “for” and “billed for” a particular calendar year shall be deemed to
refer to Taxes levied, assessed, billed or otherwise imposed for such calendar
year, without regard to the dates when any such Taxes are due and payable.
Landlord’s good faith estimate of Taxes for the calendar year ending December 31,
2002 is $1.50/RSF based on the projected 2001 tax payment (2000 assessment
year) for improved, like properties in the Colorado Tech Center. Tenant
acknowledges, however, that in 2001 property valuations will be reassessed by
Boulder County, which will increase property taxes.

 

(a)                                  Definition. As used in this Lease, the term “Taxes” means any and all general and
special taxes and impositions levied, assessed, or imposed upon, or with
respect to, the Premises, any leasehold improvements, fixtures, installations,
additions and equipment, whether owned by Landlord or Tenant, or either because
of or in connection with Landlord’s ownership, Leasing and operation of the
Building and the Property, including, without limitation, real estate taxes,
personal property taxes for property used in connection with, and to the extent
used on behalf of, the Property, general or special assessments, and duties or
levies charged or levied upon or assessed against the Building and the Property

 

 

and
personal property, or any tax or excise on rent or any other tax (however
described) on account of rental received for use and occupancy of any or all of
the Building and the Property, whether any such taxes are imposed by the United
States, the State of Colorado, the County of Boulder, or any local governmental
municipality, authority, or agency or any political subdivision. Taxes shall
not include any net income, capital stock, succession, transfer, franchise,
gift, estate or inheritance taxes.

 

(b)                                 Payment. Commencing with the Initial Premises Commencement Date, Tenant shall
pay to Landlord on the first day of each calendar month until the next upward
adjustment date (which period between adjustment dates is herein called a “Tax
Deposit Year”) one-twelfth of the estimated amount of the Taxes. Landlord shall
estimate such amount prior to the beginning of each calendar year, and may
adjust its estimate no more than one time per calendar year. No later than April 15
of each year, the amounts paid under this Subsection 5.01(b) in any
Tax Deposit Year shall be reconciled with amounts actually billed to Landlord
for the same Tax Deposit Year, and provided there is any surplus remaining
after the credit to Tenant and provided that there is no uncured event of
Tenant default beyond applicable notice and cure periods under any of the
provisions of this lease, Landlord shall, at Landlord’s option, either refund
the amount of the surplus to Tenant within thirty (30) days following the end
of the Tax Deposit Year or apply the surplus amount against any other amounts
then due, or future amounts due, from Tenant to Landlord. If upon the
reconciliation there is any deficiency in the amount of Taxes paid by Tenant, Landlord
shall bill Tenant and Tenant shall pay the additional amount within thirty (30)
days after receipt of Landlord’s statement. Any amount of surplus or deficiency
due at the expiration or earlier termination of this lease, shall be paid by
the owing party to the other within thirty (30) days after such
expiration/termination.

 

5.02                           (a) Inclusion in Operating Costs. Tenant shall pay Tenant’s
Proportional Share of the Operating Costs for the Property. Landlord’s good
faith estimate of Operating Costs as of November 15, 2000 is $.90 per
rentable square foot of the Premises. As used in this lease, the term “Operating
Costs” means any and all expenses, costs and disbursements (other than Taxes
and those items excluded under section 5.02 (b) hereof), which are
paid or accrued by Landlord in connection with the management, maintenance,
operation or repair of the Building, including, without limitation:

 

(i)                                     Costs of supplies;

 

(ii)                                  Costs incurred in connection with obtaining
and providing energy for the Building, including, but not limited to, costs of
propane, butane, natural gas, steam, electricity, fuel oils, coal or any other
energy sources, except if separately metered to the Leased Premises, in which
case Tenant shall pay 100% of its metered amount;

 

(iii)                               Costs of water and sanitary sewer and storm drainage services;

 

(iv)                              Costs of general maintenance and repairs, including costs of repairing
heating, ventilation and air conditioning systems and the cost of exterior
building and roof maintenance and repairs;

 

(v)                                 Cost of insurance;

 

(vi)                              Costs of maintenance and reasonable replacement of landscaping; and

 

(vii)                           Costs for professional management of the Property not to exceed 6% of
Base Rent or the then current market management fee for like buildings in the
area, whichever is less.

 

(b)                                    Exclusion from Operating Costs. Notwithstanding the foregoing “Operating
Costs” shall not include:

 

(i)                                     Costs of repairs or other work occasioned by
fire, windstorm or other insured casualty to the extent of insurance proceeds
received;

 

(ii)                                  Leasing commissions, advertising, advertising
expenses, and other costs incurred in leasing space in the Building or other
properties of Landlord;

 

(iii)                               Costs of repairs or building necessitated by condemnation;

 

 

(iv)                              Any interest on borrowed money or debt amortization, except as
specifically set forth above;

 

(v)                                 Depreciation on the Building;

 

(vi)                              Any settlement, payment or judgment incurred by Landlord or the
Building manager due to the negligence or willful misconduct of Landlord, its
employees, agents, or contractors;

 

(vii)                           Cost of any damage to the Building caused directly by the negligence or
willful misconduct of Landlord, its employees, agents, or contractors;

 

(viii)                        Cost of structural repairs or reconstruction of any portion of the
Building;

 

(ix)                                Costs of providing utility lines to the Building other than the
utilities and services to be provided by Landlord pursuant to this Lease, or of
repairing such lines if they break (but not if they are plugged by Tenant’s
usage );

 

(x)                                   Ground lease and debt service payment(s);

 

(xi)                                The cost of items which would, in accordance with generally accepted
accounting principles (GAAP), be capitalized;

 

(xii)                             The cost of tenant improvements;

 

(xiii)                          The cost of repairing defects in construction workmanship or materials;

 

(xiv)                         Items for which the Landlord is reimbursed by insurance or otherwise;

 

(xv)                            Accounting, legal, or other professional fees related to new leases or
disputes with current or past tenants;

 

(xvi)                         Leasing or brokerage commissions;

 

(xvii)                      Costs associated with replacement or material repairs of base building
structure or systems, including but not limited to the foundation, structural
components, roof, mechanical, electrical and plumbing systems, unless due to
specific acts or omissions of Tenant;

 

(xviii)                   The cost of services exceeding the then current market costs for such
services; and

 

(xix)                           All alterations, improvements, or additions and other capital
expenditures for the Property.

 

(c)                                  Warranties. Tenant shall be entitled to reimbursement for any amounts collected
by Landlord under any manufacturer’s warranty on any systems or machinery used
in the Building; provided that Tenant has previously paid to Landlord the
repair expense relating to Landlord’s warranty claim.

 

(d)                                 Payment. Beginning on the Initial Premises Commencement Date, Landlord shall
supply Tenant with written notice of Landlord’s estimate of the Operating Costs
that will be incurred or accrued during the current calendar year (the “Deposit
Year”). On or before the first day of each month during such Deposit Year,
Tenant shall pay to Landlord one-twelfth of Tenant’s Proportional Share of the
estimated amount. For each subsequent Deposit Year, if the monthly deposit
amount is not determined in time for Tenant to make the first payment on January 1
of the relevant Deposit Year, then the first monthly payment shall be due on
the first day of the month immediately following the date Landlord supplies
Tenant with notice of the amount. Landlord shall provide to Tenant the
estimated amount prior to March 31 of such Deposit Year, and the first
monthly payment(s) shall also include a payment equal to one-twelfth of such
additional sum multiplied by the number of calendar months which have elapsed
during the Deposit Year prior to the date Tenant makes its first payment, not
to exceed three months of such additional sum. Landlord may adjust its estimate
of Operating Costs no more than one time per calendar year. No later than April 15
of each year, the amounts paid under this Subsection 5.02 in any Deposit
Year shall be reconciled with amounts actually billed to Landlord for the same
Deposit Year, and provided there is any surplus remaining after the credit to
Tenant and provided that there is no uncured event of Tenant default beyond 

 

 

any
applicable cure period under any of the provisions of this Lease, Landlord
shall apply the surplus amount against any other amounts then due, or future
amounts due, from Tenant to Landlord. If upon the reconciliation there is any
deficiency in the amount of Operating Costs paid by Tenant, Landlord shall bill
Tenant and Tenant shall pay the additional amount within thirty (30) days of
receipt of Landlord’s statement. Any amount of surplus or deficiency due at the
expiration or earlier termination of this Lease, shall be paid by the owing
party to the other within thirty (30) days after such expiration/termination.

 

5.03                           Audit and Adjustment Procedures.

 

(a)                                  The annual determination and statement of
Taxes and Operating Costs shall be prepared by Landlord no later than April 15
of each year, in accordance with generally accepted accounting principles. In
the event of any dispute as to any Rent due under this Lease, Tenant shall have
the right to inspect Landlord’s accounting records, within two years of the
applicable Deposit Year, relative to Taxes and Operating Costs at the office in
which Landlord maintains its records in the Denver/Boulder metropolitan area,
currently located at 6685 Gunpark Drive, Suite 210, in Boulder Colorado,
during normal business hours at any time following the furnishing by Landlord
to Tenant of the statement, and Landlord will cooperate in good faith for such
examination/audit. If it is discovered that Tenant has been invoiced or has
otherwise paid an amount in excess of Tenant’s Proportional Share of allowable
Taxes and Operating Costs, Tenant shall deliver to Landlord copies of
applicable audits, reports or other results from it examination, Landlord will
pay to Tenant such excess amount within thirty (30) days after receipt of
Tenant’s statement, and will modify applicable future Tax and Operating Cost
charges. If Landlord has any objection or dispute with Tenant’s statement,
Landlord shall provide written notice thereof to Tenant within thirty (30) days
after receipt of Tenant’s statement, indicating in reasonable detail the
particular objections or disputes made by Landlord. If any error or
miscalculation discovered through Tenant’s examination is equal to or greater
than five percent (5.0%) of the sum of Taxes and Operating Costs initially
invoiced to and paid by Tenant, Landlord shall pay the reasonable cost of
Tenant’s examination/audit. Notwithstanding the foregoing, there shall be no
time limitations regarding payment to Tenant by Landlord for any material errors
in the calculation, billing, or Tenant’s payment of Taxes or Operating Costs.

 

(b)                                 If the Term of this Lease commences on any
day other than the 1st day of a calendar year, or if the Term of
this Lease ends on any day other than the last day of the last month
of the term, any payment due to Landlord by reason of an increase in Taxes
or Operating Costs shall be prorated on the basis by which the number of days
in such partial year bears to 365.

 

SECTION 6

 

HOLDING OVER

 

6.01                           Rent Increase. Should
Tenant hold over after the termination of this Lease, whether the termination
occurs by lapse of time or otherwise, Tenant shall become a tenant from month
to month upon each and all of the terms herein provided as may be applicable to
such a tenancy, and any such tenancy shall not constitute an extension of this
Lease; provided, however, during the period as a tenant from month to month,
Tenant shall pay Base Rent at one hundred twenty five percent (125%) of the
rate payable immediately preceding the date of termination of this Lease for
the first six (6) months of such Hold Over period, and shall pay Base Rent
at one hundred forty percent (140%) of the rate payable immediately preceding
the date of termination of this Lease for any remainder of the Hold Over period.
The provisions of this paragraph shall not exclude nor waive Landlord’s right
of re-entry or any other right hereunder.

 

SECTION 7

 

BUILDING SERVICES

 

Landlord shall provide, as described below and as
described in the Base Building Conditions, at its cost except as may be passed
through to Tenant as an allowable component of Operating Costs, the 

 

 

following
services throughout the Term of the Lease (each, a “Building Service” and
collectively, the “Building Services”):

 

(a)                                                          maintenance of the site, Building, parking
lots, landscaping, and other components of the Property;

 

(b)                                                         installation and maintenance of landscaping;

 

(c)                                                          Utilities and other services, including but
not limited to hot and cold running water, sewer and other related plumbing
services, electricity, gas, and other sources of power acceptable to Tenant,
delivered and installed at central point(s) and other locations acceptable to
Tenant within the Building;

 

(d)                                                         Conduit for services such as
telecommunications, data, and other services requiring wiring/conduit, such
actual services to be provided by third party vendors;

 

(e)                                                          Heating, ventilation, and air conditioning
for consistent and comfortable use of the Premises by Tenant;

 

(f)                                                            Passenger elevator services if the Building
is greater than one floor. Tenant may utilize passenger elevators for freight
unless a freight elevator is installed and designated by Landlord;

 

(g)                                                         Snow removal;

 

(h)                                                         Janitorial services for cleaning of the
Premises, on each day other than weekends and standard business holidays; and

 

(i)                                                             Trash pickup and removal.

 

Unless
due to the act or negligence of Tenant, or unless due to any temporary
unavailability outside the control of Landlord, Landlord shall be responsible
for maintaining the Building services throughout the term of this Lease. All
Building Services provided by Landlord shall be consistent with the quality of
such services in similar “flex” buildings in the Colorado Tech Center area.

 

Tenant
shall have access to the Premises and the Building, and may utilize all
Building Services at any time, on a 24 hours per day/7 days per week basis. The
Premises will be separately metered for electrical power and gas as part of the
Base Building Conditions.

 

7.01                           Interruption of Standard Services. Tenant agrees that Landlord shall not be liable for failure to supply
any heating, air conditioning, janitorial services, electric current, or any
other utility during any period when Landlord uses its best efforts to restore
or to supply such services or utility. Landlord reserves the right to
temporarily discontinue such services at times as may be necessary by reason of
accident, repairs, alterations, or improvements, or by reason of strikes,
lockouts, riots, acts of God, or any other happening or occurrence beyond the
reasonable control of Landlord, provided such discontinuance does not
substantially interfere with Tenant’s business operations. Notwithstanding the
foregoing, Tenant shall receive a one (1) day abatement of Base Rent and
Operating Costs for each day any Building Service is not available to the
Premises, unless due to circumstances outside the control of Landlord or unless
due to the negligence or misconduct of Tenant.

 

7.02                           Telephone. Tenant
shall separately arrange with the applicable local public authorities or
utilities, as the case may be, for the furnishing of and payment for all
telephone services as may be required by Tenant in the use of the Premises,
except for the conduit required for such services as described in Section 7.01
above which conduit shall be provided by Landlord as part of the Base Building
Conditions. Tenant shall directly pay for such telephone services, including
the establishment and connection thereof, at the rates charged for the services
by the authority or utility, and the failure of Tenant to obtain or to continue
to receive the services for reasons other than those specified herein shall not
relieve Tenant of any of its obligations under this Lease. Landlord shall
supply sufficient telephone and data lines into the Building for Tenant’s
connection, including service entrance, and demark points at electrical and
communications rooms, for voice services, and fiber. Landlord warrants that
communications fiber is available to the Building.

 

 

7.03                           Above-Standard Service Requirements. If heat-generating machines or any equipment cause the temperature in
the Premises, or any part, to exceed the temperatures that the Building’s air
conditioning and other cooling systems would be able to maintain in the
Premises according to the specifications described in the Base Building
Conditions, were it not for the heat-generating equipment, then Tenant and
Landlord reserve the right to install supplementary air conditioning units in
the Premises, and the actual cost, including the cost of installation and the
cost of operation and maintenance thereof, shall be paid by Tenant (to Landlord
upon demand by Landlord if such costs are incurred by Landlord). Landlord shall
not install supplemental air conditioning units in the Premises unless it has
obtained Tenant’s request therefor or Tenant’s prior written consent thereto. If
Tenant requires electric current, water, or any other energy in excess of that
which is described in the Base Building Conditions, Tenant shall first procure
the consent of Landlord, which consent of Landlord shall not be unreasonably
withheld or delayed. If Landlord consents to such excess electric, water, or
other energy requirements, Tenant shall, on demand, pay all costs of meter
service and installation of facilities necessary to measure and/or furnish such
excess capacity. Tenant shall also pay the entire cost of such additional
electricity, water, or other energy used. Tenant may also install supplemental
power, plumbing, HVAC, and venting equipment, and other base building improvements
with Landlord’s prior, reasonable approval. Any service required by Tenant in
excess of the specifications described in the Base Building Conditions shall be
referred to as “Above Standard Services”. Landlord acknowledges that Tenant may
require Above Standard Services, and may require to make other
changes/improvements to the Base Building, and Landlord shall not withhold its
consent based on consumption, usage, or non-material impact to the Building.

 

SECTION 8

 

CONDITION OF PREMISES AND
BUILDING

 

8.01                           CONDITION OF PREMISES and Building

 

a.                                       Acceptance Upon Possession. Tenant, by taking possession of the
Premises, shall be deemed to have agreed that the Premises were, as of the date
of taking possession, in good order, repair, and condition and satisfactorily
completed in accordance with Landlord’s obligations under this Lease, subject
to any latent defects and/or “punch list” items to be completed by Landlord
resulting from Landlord’s obligations as set forth in the Work Letter.

 

b.                                      Landlord agrees to construct, maintain, and
manage the quality and image of the Building as a high quality “flex” building
at all times, including the general professional environment of the Building.
No use or operation by other parties or vendors which interferes with Tenant’s
use and operations, including but not limited to any food preparation or
storage, operations which cause noise, vibration, dust, or other environmental
pollutants or discharge, or any use which adversely affects the Building
structure or Building services, shall be allowed in any portion of the building
or parking areas without the prior written consent of Tenant in its sole
discretion. In addition, no competitor of Tenant shall be allowed to lease
space in the Building without the prior written consent of Tenant in its sole
and absolute discretion. A competitor of Tenant is defined as any entity
engaged in the direct manufacturing, processing, and/or sale of medical
diagnostics or testing devices.

 

SECTION 9

 

USE OF LEASED PREMISES

 

9.01                           Use. The Leased
Premises shall not be used other than for the purpose set forth in Section 1
of this Lease. Tenant’s use shall at all times comply with all applicable laws,
ordinances, regulations, or other governmental ordinances in existence.

 

9.02                           Hazardous Use. Notwithstanding anything to the contrary
contained in this Lease, Landlord agrees to indemnify, defend and hold harmless
Tenant, its parent, subsidiaries and affiliates, and their respective officers,
directors, shareholders and employees, from and against any and all liabilities,
losses, damages, suits, actions, causes of action, costs, expenses (including
without limitation reasonable attorneys’ fees and disbursements and court
costs), penalties, fines, demands, judgments, claims or liens (including without
limitation claims or liens imposed under any so-called “Superfund” or other
environmental legislation) arising from or in connection with the presence at
the time of Tenant’s taking possession of the Premises of Hazardous Materials
(as hereinafter defined) on, or the subsequent removal thereof from, the
Property (including without limitation the Premises). Landlord shall have the
right to assume exclusive control of 

 

 

the
defense of any such suit, action or claim, and Tenant agrees to cooperate reasonably
with Landlord in the performance by Landlord of its obligations under this
Section.

 

Notwithstanding
anything to the contrary contained in this Lease, Tenant agrees to indemnify,
defend and hold harmless Landlord from and against any and all liabilities,
losses, damages, suits, actions, causes of action, costs, expenses (including
without limitation reasonable attorneys’ fees and disbursements and court
costs), penalties, fines, demands, judgments, claims or liens (including
without limitation claims or liens imposed under any so-called “Superfund” or
other environmental legislation) arising from or in connection with the release
or discharge of Hazardous Materials which are stored, generated or otherwise
brought onto the Premises by or at the direction of Tenant. Tenant shall have
the right to assume exclusive control of the defense of any such suit, action
or claim, and Landlord agrees to cooperate reasonably with Tenant in the
performance by Tenant of its obligations under this Section. Tenant shall have
the right, at Tenant’s sole election and at Tenant’s sole cost and expense, to
perform or cause to be performed, from time to time during the Term (as the
same may be extended), environmental testing to determine the presence of
Hazardous Materials on the Premises.

 

For purposes of this Section, the term “Hazardous
Materials” shall include without limitation any petroleum product, any
flammable, explosive or radioactive material, or any hazardous or toxic waste,
substance or material, including without limitation substances defined as “hazardous
substances”, “hazardous materials,” “solid waste” or “toxic substances” under
any applicable laws relating to hazardous or toxic materials and substances,
air pollution (including noise and odors), water pollution, liquid and solid
waste, pesticides, drinking water, community and employee health, environmental
land use management, stormwater, sediment control, nuisances, radiation,
wetlands, endangered species, environmental permitting and petroleum products,
which laws may include, but not be limited to, the Federal Insecticide,
Fungicide, and Rodenticide Act, as amended; the Toxic Substances Control Act;
the Clean Water Act; the National Environmental Policy Act, as amended; the
Solid Waste Disposal Act, as amended; the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended by the Superfund Amendments
and Reauthorization Act of 1986; the Hazardous Materials Transportation Act, as
amended; the Resource Conservation and Recovery Act, as amended; the Clean Air
Act, as amended; the Emergency Planning and Community Right-to-Know Act, as
amended; the Occupational Safety and Health Act, as amended; comparable state
laws; and all rules and regulations promulgated pursuant to such laws and
ordinances.

 

The
provisions of this Section shall survive the expiration or earlier
termination of this Lease.

 

9.03                           No Waste. Tenant
shall not commit, suffer, nor permit any waste, damage, disfiguration, or
injury to the Leased Premises or the Building’s common areas or the fixtures
and equipment located in or on the Building, or permit or suffer any
overloading of the floors and shall not place any safes or heavy business
machinery in the Premises other than as specifically provided for in the Work
Agreement and plans for the Tenant Improvements, without first obtaining the
written consent of Landlord and, if required by Landlord, of Landlord’s
architect, and shall not use or permit to be used any part of the Leased
Premises for any dangerous, noxious, or offensive trade or business, and shall
not cause or permit any nuisance, noise, or action in, at, or on the Leased
Premises. Notwithstanding anything to the contrary contained herein, Landlord
acknowledges and approves Tenant’s use of the Premises and Building, including
but not limited to Tenant’s intent to store and use various substances and
chemicals, including, without limitation, those identified on a list previously
submitted and approved by Landlord, in compliance with laws and regulations
governing such substances and chemicals and such use shall not be deemed a
violation of the foregoing provisions of this Section 9.03.

 

a.                                                               Protection Against Insurance Cancellation. If any insurance policy on the Building or
any part thereof shall be canceled or if cancellation shall be threatened, or
if the coverage shall be reduced or be threatened to be reduced, in any way by
reason of the use or occupation of the Leased Premises or any part thereof by
Tenant, any assignee or subtenant of Tenant, or by anyone permitted by Tenant
to be upon the Leased Premises, and if Tenant fails to take reasonable efforts
to remedy the condition giving rise to the cancellation, threatened
cancellation, reduction, or threatened reduction of coverage within forty-eight
(48) hours after notice or to complete the remedy within ten (10) days
after notice, Landlord may, at its option, enter upon the Leased Premises and
attempt to remedy the condition, and Tenant shall forthwith pay the cost to
Landlord as Rent. Landlord shall not be liable for any damage or injury caused
to any property of Tenant or of others located on the Leased 

 

 

Premises as a result of such entry unless such
damage or injury is a result of the negligence or willful misconduct of
Landlord or its employees, agents or contractors.

 

b.                                                              Use of Roof and Site by Tenant. Tenant may access and utilize the roof of
the Building, or any area on the site of the Property subject to any applicable
approval by governmental entities, to install and operate communications or
other equipment throughout the Term and any extension thereof, with the prior
written consent of Landlord, which consent shall not be unreasonably withheld,
delayed or denied. Such access and use shall be at no additional cost to
Tenant, with the exception of the cost of installation, maintenance, and
removal of such equipment which shall be Tenant’s sole responsibility. Tenant
may also, with Landlord’s written approval, install and utilize conduit for
access/wiring of such equipment and connection of such equipment to the
Premises.

 

SECTION 10

 

COMPLIANCE WITH LAW

 

10.01                     Compliance. Tenant shall not use the Premises or permit anything to be done in or
about the Premises which will in any way conflict with any law, statute,
ordinance, or governmental rule or regulation now in force or which may
hereafter be enacted or promulgated. Tenant shall, at its sole cost and
expense, promptly comply with all laws, statutes, ordinances, and governmental
rules, regulations, or requirements now in force or which may hereafter be in
force, and with the requirements of any board of fire underwriters or other
similar body now or hereafter constituted relating to or affecting the
condition, use, or occupancy of the Premises, but, however, excluding any
required structural changes which are not related to or affected by Tenant’s
improvements or acts.

 

Landlord
warrants and represents that, as of the Initial Premises Commencement Date, (i) the
Building and the Premises shall be in compliance with all applicable laws,
codes, ordinances, orders, rules and regulations of any governmental or
other public authority, (ii) all electrical, plumbing, lighting, fire
protection and heating, ventilation and air conditioning systems shall be in
good condition and repair, and (iii) there shall be no restrictions or
other legal impediments, either imposed by law (including without limitation
applicable zoning and building codes or ordinances) or by instrument, which
would prevent the use of the Premises for the permitted uses hereunder. If at
any time during the Term, as the same may be extended, applicable law shall not
permit the use of the Premises in accordance with the original intended use
designated in Section 1.01 of this Lease, then Tenant, without waiving any
other right Tenant may have on account thereof, may terminate this Lease upon
no less than thirty (30) days’ prior written notice to Landlord.

 

SECTION 11

 

ALTERATIONS AND REPAIRS

 

11.01                     Tenant to Maintain.
Tenant shall, at its sole expense, keep the Premises in good repair and
tenantable condition during the Term of this Lease. Tenant shall not, without
the prior written consent of the Landlord, whose consent shall not be
unreasonably withheld, make any alterations, improvements, or additions to the
Premises (except for the Tenant Improvements, which shall be governed by the
Work Letter), including, but not limited to, partitions, wall coverings, floor
coverings, and special lighting or equipment installations. Notwithstanding the
foregoing, Landlord’s approval shall not be required for any alterations,
improvements or additions desired by Tenant which are nonstructural in nature
and the cost of which does not exceed $50,000 in each instance. Prior to
commencement of any alterations, improvements, or additions for which Tenant is
required to obtain Landlord’s approval, Tenant shall submit to Landlord a set
of fully detailed working drawings and specifications for the proposed
alteration, prepared by a licensed architect or engineer reasonably approved by
the Landlord. In particular, but not as a limitation, the working drawings must
fully detail changes to mechanical, wiring, and electrical, lighting, plumbing,
and HVAC systems to Landlord’s reasonable satisfaction. Landlord may require
additional reasonable information for approval of the alterations because of
the inadequacy of the drawings and specifications. Landlord shall notify Tenant
at the time of granting its consent whether it shall require Tenant to remove
any portion of the alterations at the expiration of the Term or other termination
of this Lease. As a condition of approval for such alterations, Landlord shall
have the right to require Tenant to furnish adequate bond or other security
reasonably acceptable to Landlord for performance of and payment 

 

 

for
the work to be performed. All alterations, improvements, or additions, whether
temporary or permanent in character, made by Landlord or Tenant in or upon the
Premises shall become Landlord’s property and shall remain upon the Premises at
the termination of this Lease by lapse of time or otherwise, without
compensation to Tenant (excepting only Tenant’s movable office furniture, trade
fixtures, and office and professional equipment or other personal property,
whether or not attached to the Premises), Tenant shall, however, have the right
to remove any of the Tenant Improvements which Tenant, at the time of
submitting or approving the plans and specifications for the same in accordance
with the Work Letter, identified as those which Tenant intends to remove at the
termination or earlier expiration of this Lease. Landlord shall not
unreasonably withhold or qualify approval of any such alterations, additions,
or improvements based on the requirement of removal by Tenant. Tenant shall
promptly pay to Tenant’s contractors, when due, the cost of all work and of all
decorating, and upon completion, deliver to Landlord, if payment is made
directly to Tenant’s contractors, evidence of payment and waivers of all liens
for labor, services, or materials. Tenant shall defend and hold Landlord, the
Premises, the Building, and the Property harmless from all costs, damages,
liens for labor, services, or materials relating to the work, and shall defend
and hold Landlord harmless from all costs, damages, liens, and expenses related
to the work, unless such liens, services, materials, costs, damages, or
expenses are the result of the act, omission, negligence, or misconduct of
Landlord or its employees, agents, or contractors. If Landlord incurs any
expenses in the removal of trash or cleaning as a result of Tenant’s contractor’s
work, then Tenant agrees it shall reimburse Landlord within thirty (30) days of
billing.

 

11.02                     Protection Against Liens. At least five (5) days prior to the commencement of any work on
the Leased Premises by Tenant, Tenant shall notify Landlord of the names and
addresses of the persons supplying labor and materials for the proposed work so
that Landlord may avail itself of the provisions of statutes such as Section 38-22-105(2) of
the Colorado Revised Statutes (1973), or any successor statutory provision.
During the progress of any work on the Leased Premises, Landlord or its
representatives shall have the right to post and keep posted thereon notices
such as those provided for by Sections 38-22-105(2) (C.R.S. 1973) or to
take any further action which Landlord may deem to be proper for the protection
of Landlord’s interest in the Leased Premises.

 

11.03                     Condition on Surrender.
Tenant shall, at the termination of this Lease, surrender the Premises to
Landlord in as good condition and repair as reasonable and proper use will
permit, loss by ordinary wear and tear, fire, and other casualty excepted, and
in the state of broom cleanliness.

 

11.04                     Damage by Tenant. If
any part of the Building or other improvements become damaged or are destroyed
through the negligence, carelessness, or misuse of Tenant, its servants,
agents, employees, or anyone permitted by Tenant to be in the Building,
or through Tenant or such parties, then the cost of necessary repairs,
replacements, or alterations shall be borne by Tenant, who shall, on demand,
forthwith pay the same to Landlord as Rent.

 

SECTION 12

 

ABANDONMENT

 

12.01                     Disposition of Personal Property. Tenant shall not vacate or abandon the Premises at any time during
the Term without notice to Landlord and payment of rent, and if Tenant shall
otherwise abandon, vacate, or surrender (whether at the end of the stated Term
or otherwise) the Premises, or shall be dispossessed by process of law or
otherwise, then any personal property belonging to Tenant left on the Premises
shall be deemed abandoned and may be sold or otherwise disposed of by Landlord
without any liability to Tenant whatsoever. Tenant shall not at any time remove
Landlord’s property or any fixtures constituting property of Landlord from the
Premises. Any removal of Landlord’s property from the Premises by Tenant shall
constitute a material breach of this Lease and Landlord shall have the right to
take all reasonable steps to stop or prevent such breach without such actions
constituting a constructive eviction of Tenant.

 

SECTION 13

 

ASSIGNMENT AND SUBLETTING

 

13.01                     Limitation on Assignment or Subletting. Tenant shall not assign this Lease, or any
interest therein, and shall not sublet the Premises, or any part thereof, or
any right or privilege appurtenant 

 

 

thereto, or shall not suffer
any other person to occupy or use the Premises, or any portion thereof, without
the written consent of Landlord, which consent shall not be unreasonably
withheld, conditioned or delayed. Neither this Lease nor any interest therein
shall be assignable as to the interest of Tenant by operation of law without
the written consent of Landlord, which consent may not be unreasonably
withheld, conditioned or delayed. Any amount of rent received by Tenant for any
such assignment or subletting to a third party (excluding any transferee under Section 13.02
below), which is in excess of the Base Rent and Operating Expenses passed
through to Tenant, shall be divided equally between Tenant and Landlord after
Tenant deducts from any such overage its reasonable costs incurred in
completing the assignment or subletting, including but not limited to the cost
of any rental abatement, improvements, commissions, legal fees and other such
costs.

 

13.02                     Assignment or Subletting to a Parent, Affiliate, or Subsidiary. Notwithstanding anything to the contrary
contained in this lease, Tenant shall have the right to make, without landlord’s
consent, any assignment of this lease or subletting of all or any portion of
the Premises, so long as Thermo Electron Corporation, a Delaware corporation
remains the guarantor on this lease, to (a) a parent, subsidiary,
affiliate or division of Tenant, (b) any entity with which or into which
Tenant may consolidate or merge, or (c) any
entity acquiring all or substantially all of the assets of Tenant.

 

13.03                     Acceptance of Performance; No Waiver. If the Premises or any part are sublet or occupied by anybody other
than Tenant, Landlord may, upon default by Tenant beyond any applicable cure
period, collect the rent from the subtenant or occupant and apply the net
amount collected to the Rent. Upon assignment pursuant to the terms of this
section, Tenant shall be relieved of further liability under this Lease as to
the subleased premises. Consent by Landlord to anyone assignment or subletting
shall not in any way be construed as relieving Tenant from obtaining the Landlord’s
expressed written consent to any further assignment or subletting.

 

13.04                     Landlord to Approve Documents. All documents utilized by Tenant to evidence any subletting or
assignment to which Landlord has consented shall be subject to prior approval
by Landlord or its attorney, which approval shall not be unreasonably withheld
or delayed. Tenant shall pay on demand all Landlord’s costs and expenses,
including reasonable attorneys’ fees, incurred in determining whether or not to
consent to any requested subletting or assignment and in reviewing and
approving such documentation which shall not exceed $500.

 

SECTION 14

 

SIGNS AND ADVERTISING

 

14.01                     Tenant shall have the right to install or construct monument,
directional, and building signage at its sole cost and expense subject to
approval by the City of Louisville. Prior to installing or constructing any
signage pursuant to this section, Tenant shall submit to Landlord for its
reasonable review and approval drawings of the proposed signage, including size
and dimensions. Landlord shall submit for Tenant’s approval, which approval
shall not be unreasonably withheld, any signage proposed for any other tenants
of the Property.

 

SECTION 15

 

DAMAGE TO PROPERTY, INJURY
TO PERSONS

 

15.01                     Damage by Tenant.
Tenant agrees to pay for all damage to the Building or the Premises, as well as
all damage to tenants or occupants thereof caused by Tenant’s misuse or neglect
of the Premises, its apparatus or appurtenances, or caused by any licensee,
contractor, agent, or employee of Tenant. Notwithstanding anything to the
contrary contained in this Lease, Landlord and Tenant each hereby waives all
rights of recovery against the other party, and such other party’s insurance
carrier (by way of subrogation or otherwise), for all losses or damages to the
Premises, any improvements thereon or any personal property of either party therein,
to the extent such waiver does not invalidate the insurance coverage of either
party and to the extent such losses or damages are covered by insurance the
damaged party is required to carry hereunder or otherwise elects to maintain;
provided, however, that the foregoing waiver by either party shall not apply
with respect to any loss or damage to the extent caused by the negligence or
willful misconduct of the other party, its agents, employees, representatives
or contractors.

 

15.02                     Tenant’s Property.
Particularly, but not in limitation of the foregoing paragraph, all property
belonging to Tenant, or any occupant of the Premises, that is in the Building
or the Premises, shall 

 

 

be
there at the risk of Tenant or other person only, and Landlord or its agents or
employees (except in the case of negligence or willful misconduct of Landlord
or its agents, employees, licensees or contractors) shall not be liable for: (i) damage
to or theft or misappropriation of such property; (ii) loss of or damage
to any property by theft or otherwise, by any means whatsoever; (iii) any
injury or damage to persons or property resulting from fire, explosion, falling
plaster, steam, gas, electricity, snow, hail, water, or rain which may
leak from any part of the Building or from the pipes, appliances, or plumbing
works therein or from the roof, street, subsurface, or from any other place, or
resulting from dampness or any other cause whatsoever, except any such injury
or damage resulting from faulty or improper construction or
installation of the Base Building or resulting from lack of
proper maintenance or repair by Landlord; or (iv) interference with the
light, air, or other incorporeal hereditament. Tenant shall give prompt notice
to Landlord in case of fire or accidents in the Premises or in the Building or
of observed defects in the Building, its fixtures or equipment.

 

SECTION 16

 

TENANT’S INSURANCE

 

16.01                     Insurance. Tenant
shall, during the entire Term of this Lease, at its sole cost and expense,
obtain, maintain, and keep in full force and effect the following types of
insurance:

 

(a)                                  All risk coverage insurance, including
endorsements for vandalism, malicious mischief, theft, sprinkler leakage,
covering all of Tenant’s property, including, but not limited to, furniture,
fittings, equipment, installations, alterations, additions, partitions,
fixtures, and anything in the nature of a leasehold improvement (other than
those belonging to Landlord hereunder) in an amount equal to the full
replacement cost of such property without deduction for depreciation;

 

(b)                                 Commercial general liability insurance,
including bodily injury and property damage, personal injury, contractual
liability with respect to all claims, demands, or actions by any person, firm,
or corporation, in any way arising from, related to,
or connected with the conduct and operation of Tenant’s business in the
Premises or Tenant’s use of the Premises. Such policies shall be written on a
comprehensive basis, with limits not less than $1,000,000.00, and such higher
limits as Landlord or the mortgagees of Landlord may require from time to time,
but may not be unreasonably required, subject to reasonable standards for
insurance coverage and limits for similar uses, in like facilities, in the
Colorado Tech Center area;

 

(c) Any other form or forms of insurance as the
mortgagees of Landlord may reasonably require from time to time in form, in
amounts and for insurance risks against which a prudent tenant would protect
itself, subject to reasonable standards for insurance coverage and limits for
similar uses, in like facilities, in the Colorado Tech Center area;

 

(d) Business interruption insurance in such
amounts as will reimburse the Tenant for direct or indirect loss of earning
attributable to all perils commonly insured against by prudent tenants or
attributable to prevention of access to the Premises or to the Building as a
result of such perils.

 

16.02                     Evidence. All
policies shall be taken out with insurers reasonably acceptable to Landlord and
in form reasonably satisfactory from time to time to Landlord. Tenant agrees
that certificates of insurance will be delivered to Landlord as soon as
practicable after the placing of the required insurance, but in no event later
than five (5) days after Tenant takes possession of all or any part of the
Leased Premises. All policies shall require that at least thirty (30) days’
prior written notice be delivered to Landlord by the insured prior to
termination, cancellation, or material change in such insurance.

 

16.03                     Proceeds. Tenant
agrees that in the event of damage or destruction to the leasehold improvements
in the Leased Premises covered by insurance required to be taken out by Tenant
pursuant to this Section, Tenant shall use the proceeds of the insurance for
the purpose of building leasehold improvements as mutually agreed upon between
Landlord and Tenant. If Landlord and Tenant cannot agree as to the new
improvements within thirty (30) days, then Tenant shall replace the identical
improvements that were destroyed. In the event of damage or destruction of the
Building entitling the Landlord to terminate this Lease pursuant to Section 17,
then, if the Leased Premises have also been damaged, Tenant will pay to
Landlord all of its insurance proceeds relating to the leasehold improvements
in the Leased Premises, and if the Leased Premises have not been damaged,
Tenant will deliver to Landlord, in accordance with the provisions of this
Lease, the leasehold improvements and the Leased Premises.

 

 

SECTION 17

 

DAMAGE OR DESTRUCTION

 

17.01                     Right to Terminate.
If the Premises or the Building are damaged by fire or other insured casualty,
and the insurance proceeds have been made available by the holder or holders of
any mortgages or deeds of trust covering the Building, the damage shall be
repaired by and at the expense of Landlord, provided such repairs can, in
Landlord’s reasonable discretion, be completed within one hundred twenty (120)
days after the occurrence of such damage, without the payment of overtime or
other premiums. Until the repairs are completed, the Rent shall be abated in
proportion to the part of the Premises which is unusable by Tenant in the
conduct of its business. If repairs cannot, in Landlord’s reasonable
discretion, be made within said one hundred twenty (120) day period, Landlord
shall notify Tenant within thirty (30) days of the date of occurrence of the
damage as to whether or not Landlord elects to make the repairs. If Landlord
elects not to make the repairs, then either party may, by written notice to the
other, cancel this lease as of the date of the occurrence of the damage. If
Landlord elects to make such repairs, Landlord shall promptly repair such
damage at its sole cost and expense, and shall complete such repairs not less
than 180 days after the date of occurrence of the damage. If Landlord reasonably
estimates that it will require more than 180 days to complete such repairs,
then either party may terminate this Lease by providing written notice to the
other. Except as provided in this Section 17, there shall be no abatement
of Rent and no liability of Landlord by reason of any injury, inconvenience,
temporary limitation of access or interference to or with Tenant’s business or
property arising from the making of any necessary repairs, or any alterations
or improvements in or to any portion of the Building or the Premises, or in or
to fixtures, appurtenances, and equipment therein necessitated by the damage.
Tenant understands that Landlord will not carry insurance of any kind on Tenant’s
furniture and furnishings or on any fixtures or equipment removable by Tenant
under the provision of this Lease, and that Landlord shall not be required to
repair any injury or damage caused by fire or other cause, or to make any
repairs or replacements to or of improvements installed in the Premises by or
for Tenant at Tenant’s cost.

 

17.02                     Landlord’s Insurance.
Landlord covenants and agrees that, throughout the Term, it will insure the
Building (excluding non-insurable items) and the machinery, boilers, and
equipment contained therein owned by Landlord (excluding any property with
respect to which Tenant is obliged to insure pursuant to the provisions of Section 16
thereof) against damage by fire and extended perils coverage in such reasonable
amounts as would be carried by a prudent owner of a similar property in the
same locale. Landlord will also, throughout the Term, carry commercial general
liability, property damage and loss of rent insurance with respect to the
operation of the Premises in reasonable amounts as would be carried by a
prudent owner of a similar property in the same locale. Landlord may, but shall
not be obligated to, take out and carry any other form or forms of insurance as
it or the mortgagees of Landlord may reasonably determine to be advisable.
Tenant shall pay for all such insurance carried by Landlord as an Operating
Cost, provided that such insurance is not duplicative of the insurance obtained
pursuant to Section 16.01. Notwithstanding any contribution by Tenant to
the cost of insurance premiums, Tenant acknowledges that it has no right to receive
any proceeds from the insurance policies carried by Landlord, and that the
insurance will be for the sole benefit of Landlord, with no coverage for Tenant
for any risk insured against.

 

SECTION 18

 

ENTRY BY LANDLORD

 

18.01                     Landlord and its agents, upon giving 24 hours notice to Tenant’s
management personnel at the Premises, shall have the right to enter the
Premises during normal business hours for the purpose of examining or
inspecting the same, to supply any services to be provided by Landlord to Tenant
hereunder, to show same to prospective purchasers (or during the last nine (9) months
of the Lease term to prospective tenants of the Premises), and to make such
alterations, repairs, improvements, or additions, whether structural or
otherwise, to the Premises or to the Building as Landlord may deem necessary or
desirable. Landlord shall not make any such alterations, repairs, improvements,
or additions which materially affect Tenant’s use or enjoyment of the
Premises/Building/Property, and any such alterations, repairs, improvements, or
additions made by Landlord shall to the best of Landlord’s ability be completed
after Tenant’s business hours. Tenant shall have the right to have a
representative present during any entry by Landlord. In the event said
alterations, repairs, improvements, or additions are required during business
hours, Landlord will work with Tenant to minimize the impact of Tenant’s use
and enjoyment of the Premises. In the event of emergency and in the event
Tenant’s employees are not at the Premises at the time of Landlord’s entry,
Landlord may enter by means of a master key, without liability to Tenant except
for any failure to exercise due care for Tenant’s property, and without
affecting this Lease. Landlord shall

 

 

use
reasonable efforts on any such entry not to unreasonably interrupt or interfere
with Tenant’s use and occupancy of the Premises. Landlord may enter the
Premises at any time in the case of an emergency.

 

SECTION 19

 

DEFAULT

 

19.01                     Events of Tenant Default. Each one of the following events is referred to as an “Event of
Tenant Default”:

 

(a)                                  Tenant shall fail to make due and punctual
payment of Rent or another amounts payable hereunder, and such failure shall
continue for fifteen (15) days after receipt of written notice from Landlord.

 

(b) Tenant shall vacate the Premises without
payment of Rent and notice to Landlord, or abandon the Premises, or remove
leasehold improvements or fixtures constituting property of Landlord;

 

(c) This Lease shall be transferred to or shall
pass to or devolve upon any other person or party except in the manner set
forth in Section 13;

 

(d) This Lease or the Premises or any part
thereof shall be taken upon execution or by other process of law directed
against Tenant, or shall be taken upon or subject to any attachment at the
instance of any creditor of, or claimant against Tenant, and said attachment
shall not be discharged or disposed of within thirty (30) days after the levy;

 

(e) The filing of any petition or the
commencement of any case or proceeding by the Tenant under any provision or
chapter of the Federal Bankruptcy Act, the Federal Bankruptcy Code or any other
federal or state law relating to insolvency, bankruptcy or reorganization; or
the adjudication that the Tenant is insolvent or bankrupt, or the entry of an
order for relief under the Federal Bankruptcy Code with respect to Tenant;

 

(f) The filing of any petition or the
commencement of any case or proceeding described in Subsection (e) above
against the Tenant, unless the petition and all proceedings initiated thereby
are dismissed within sixty (60) days from the date of the filing; the filing of
an answer by Tenant admitting the allegations of any such petition; or the
appointment of or taking possession by a custodian, trustee or receiver for all
or any assets of the Tenant, unless such appointment is vacated or dismissed
within sixty (60) days from the date of such appointment or taking of such
possession.

 

(g) Tenant shall fail to take possession of the
Premises thirty (30) days following the Commencement Date without payment of
Rent.

 

(h) Tenant shall fail to deliver an Estoppel
Certificate in accordance with the last sentence of Section 29 of this
Lease.

 

(j)                                     Tenant shall fail to perform any of the other
agreements, terms, covenants or conditions of this Lease on Tenant’s part to be
performed, and such non-performance shall continue for a period of thirty (30)
days after written notice by Landlord to Tenant, or if such performance cannot
be reasonably had within such thirty (30) day period, Tenant shall not in good
faith have commenced such performance within such thirty (30) day period and
shall not thereafter diligently proceed to completion.

 

19.02                     Remedies of Landlord. If any one or more Events of Tenant Default
shall happen, then Landlord shall have the right at Landlord’s election, or at
any time thereafter without demand or notice, to reenter and take possession of
the Premises or any part thereof and repossess the same as Landlord’s former
estate and expel Tenant and those claiming through or under Tenant, and remove
the effects of both or either, without being deemed guilty of any manner of
trespass, and without prejudice to any remedies for arrears of rent or breach
of covenants or prior conditions and without terminating this Lease. Should
Landlord elect to reenter as provided in this Subsection, or should Landlord
take possession pursuant to legal proceedings or pursuant to any notice
provided for by law including a proceeding for possession pursuant to Colorado’s
Forcible Entry and unlawful Detainer Statutes, Landlord may, from time to time,
without terminating this Lease either;

 

(a) 
(i)  Relet the Premises or any part thereof in Landlord’s or Tenant’s
name, but for the account

 

 

of Tenant, for a term or
terms (which may be greater or less than the period which would otherwise have
constituted the balance of the term of this Lease) and on conditions and upon
other terms (which may include concessions of free rent and alteration and
repair of the Premises) as Landlord, in its sole discretion, may determine, and
Landlord may collect and receive the rents. Landlord shall use reasonable
efforts to relet the Premises and maximize the income generated by the
Premises. No reentry or taking possession of the Premises by Landlord shall be
construed as an election on Landlord’s part to terminate this Lease unless a
written notice of such intention be given to Tenant. No notice from Landlord
hereunder or under a forcible entry and unlawful detainer statute or similar
law shall constitute an election by Landlord to terminate this Lease unless
such notice specifically so states. Landlord reserves the right following
any  reentry and/or reletting to exercise
its right to terminate this Lease by giving Tenant written notice, in which
event the Lease will terminate as specific in the notice.

 

(ii)                                  If Landlord elects to take possession of the
Premises as provided in this Subsection (a) without terminating the
Lease, Tenant shall pay to Landlord (1) the Rent and other sums due under
this Lease which would be payable  if
repossession had not occurred, less (2) the net proceeds, if any, of any
reletting of the Premises after deducting all Landlord’s expenses in connection
with the reletting, including, but without limitation, all repossession costs,
brokerage commissions, legal expenses, attorneys’ fees, expenses of employees,
alteration, remodeling and repair costs and expenses of preparation of the
reletting. If, in connection with any reletting, the new lease terms extends
beyond the existing term, or the premises covered include other premises not
part of the Premises, a fair apportionment of the rent received from the
reletting and the expenses incurred in connection with the reletting will be
made in determining the net proceeds received from reletting. In addition, in
determining the net proceeds from reletting, any rent concession will be
apportioned over the term of the new Lease; or

 

(b) 
To give Tenant written notice of intention to terminate this Lease on the date
of the notice, or on any later date specified in the notice. Tenant’s right to
possession of the Premises shall cease and the Lease shall thereupon be
terminated, except as to Tenant’s liability under this Lease, as if the
expiration of the term fixed in the notice were the end of the term originally
demised, including as extended by the exercise of any options granted to
Tenant. If this Lease is terminated pursuant to the provisions of this Subsection (b),
or terminated pursuant to a proceeding for possession under the Colorado
Forcible Entry and Unlawful Detainer Statutes, Tenant shall remain liable to
Landlord for damages in an amount equal to the Rent and other sums which would
have been owing by Tenant under this Lease for the balance of the Term had this
Lease not been terminated, less the net proceeds, if any, of any reletting of
the Premises by Landlord subsequent to the termination, after deducting all
Landlord’s expenses in connection with such reletting, including, but without
limitation, the expenses enumerated in Subsection (a) above. Landlord
shall be entitled to collect damages from Tenant monthly on the days on which
the Rent and other amounts would have been payable if this Lease had not been
terminated.

 

19.03                     Cumulative Remedies. Suit or suits for the recovery of the Rent
and other amounts and damages may be brought by Landlord, from time to time, at
Landlord’s election, and nothing in this Lease shall be deemed to require
Landlord to await the date when this Lease or its Term would have expired by
limitation had there been no default by Tenant, or no termination, as the case
may be. Each right and remedy provided for in this Lease shall be cumulative
and shall be in addition to every other right or remedy provided for in this
Lease or now or hereafter existing at law or in equity or by statute or
otherwise including but not limited to suits for injunctive relief and specific
performance. The exercise or beginning of the exercise by Landlord of any one
or more of the rights or remedies provided for in this Lease or now or
hereafter existing at law or in equity by statute or otherwise shall not
preclude the simultaneous or later exercise by Landlord of any or all rights or
remedies provided for in this Lease or now or hereafter existing at law or in
equity or by statute or otherwise. All such rights and remedies shall be
considered cumulative and non-exclusive. All costs incurred by Landlord in
connection with collecting any Rent or other amounts and damages owing by
Tenant pursuant to the provisions of this Lease, or to enforce any provision of
this Lease, including reasonable attorney’s fees from the date such matter is
turned over to an attorney, whether or not one or more actions are commenced by
Landlord, shall also be paid by Tenant to Landlord

 

19.04                     No Waiver. No failure by Landlord to insist upon the strict performance of any
agreement, term, covenant or condition of this Lease or to exercise any right
or remedy consequent upon a breach, and no acceptance of full or partial
payment of Rent during the continuance of any breach, shall constitute a waiver
of any breach or of the agreement to be performed or complied with by Tenant,
and no breach shall be waived, altered or modified except by written instrument
executed by Landlord. No waiver of any breach shall affect or alter this Lease,
but each and every agreement, term, covenant and condition shall continue in
full force and effect with respect to any other then existing or subsequent
breach. Notwithstanding any termination of this Lease, the same shall continue
in force and effect as to any

 

 

provisions which require
observance or performance by Landlord or Tenant subsequent to such termination.

 

19.05                     Bankruptcy. Nothing contained in this Section 18 shall limit or prejudice
the right of Landlord to prove and obtain as liquidated damages in any
bankruptcy, insolvency, receivership, reorganization or dissolution proceeding,
an amount equal to the maximum allowed by any statute or rule of law
governing such a proceeding, and in effect at the time when such damages are to
be proved, whether or not the amount is greater, equal to or less than the
amounts recoverable, either as damages or Rent, referred to in any of the
preceding provisions of this Section. Notwithstanding anything contained in
this Section to the contrary, any such proceeding or action involving
bankruptcy, insolvency, reorganization, arrangement. assignment for the benefit
of creditors, or appointment of a receiver or trustee, as set forth above,
shall be considered to be an event of default only when the proceeding, action
or remedy shall be taken or brought by or against the then holder of the
leasehold estate under this Lease.

 

19.06                     Landlord Default. Each one of the following events is
referred to as an “Event of Landlord Default”:

 

(a)                                  Landlord shall fail to make due and punctual
payment of amounts payable hereunder, and such failure shall continue for
fifteen (15) days after receipt of written notice from Tenant.

 

(b)                                 Landlord shall fail to perform any of the
other agreements, terms, covenants or conditions of this Lease on Landlord’s
part to be performed, and such non-performance shall continue for a period of
thirty (30) days after written notice by Tenant to Landlord, or if such
performance cannot be reasonably had within such thirty (30) day period,
Landlord shall not in good faith have commenced such performance within such
thirty (30) day period and shall not thereafter diligently proceed to
completion. Notwithstanding the foregoing, Landlord shall commence
repair/provisions of any Building Services which are discontinued within 24
hours after loss or discontinuance of such services and notice from Tenant, and
shall diligently proceed with such repair/provision until complete.

 

19.07                     Remedies of Tenant. If any one or more events of Landlord
Default shall happen, then Tenant shall have the right, upon written notice to
Landlord pursuant to the time frames described in Section 19.06 above, to
cure such Landlord Default, repair and replace any service of item, or conduct
any reasonable task required of Landlord pursuant to this Lease and necessary
for Tenant’s intended use of the Premises and Building. If Landlord does not
make payment of any amount due Tenant within fifteen (15) days after receipt of
Tenant’s notice., or if Landlord does not reimburse Tenant for any costs
incurred by Tenant in completing Landlord’s obligations within thirty (30) days
after receipt of Tenant’s notice, Tenant may deduct/offset such amounts due,
plus interest, against future payments of Rent until fully recaptured by
Tenant. The Provisions of this Section 19.07 shall not act to eliminate or
otherwise reduce any and all other remedies available to Tenant by Law.

 

SECTION 20

 

TAXES

 

20.01                     During the Term hereof, Tenant shall pay,
prior to delinquency, all business and other taxes, charges, notes, duties and
assessments levied, and rates or fees imposed, charged, or assessed against or
in respect of Tenant’s occupancy of the Leased Premises or in respect of the
personal property, trade fixtures, furnishings, equipment, and all other
personal property of Tenant contained in the Premises, and shall hold Landlord
harmless from and against all payment of such taxes, charges, notes, duties,
assessments, rates,. and fees, and against all loss, costs, charges, and
expenses occasioned by or arising from any and all such taxes, charges, notes,
duties, assessments, rates and fees. Tenant shall cause the fixtures,
furnishings, equipment and other personal property to be assessed and billed
separately from the real and personal property of Landlord. If any or all of
Tenant’s fixtures, furnishing, equipment, and other personal property shall be
assessed and taxes with Landlord’s real property, Tenant shall pay to Landlord
Tenant’s share of such taxes within thirty (30) days after delivery to Tenant
by Landlord of a statement in writing setting forth the amount of such taxes
applicable to Tenant’s property. All of the above documents shall be considered
confidential and only disclosed or used for Landlord’s appropriate business
purposes.

 

 

SECTION 21

 

EMINENT DOMAIN

 

21.01                     If the Building, or a substantial part
thereof, or a substantial part of the Premises, shall be lawfully taken or
condemned (or conveyed under threat of such taking or condemnation) for any
public or quasi-public use or purpose, the Term of this Lease shall end upon,
and not before, the date of the taking of possession by the condemning
authority. Tenant hereby assigns to Landlord Tenant’s interest if any, in the
award. Current Rent shall be apportioned as of the date of termination. If any
part of the Building, other than the Premises or not constituting a substantial
part of the Premises, shall be so taken or condemned (or conveyed under threat
of such taking or condemnation), or if the grade of any street adjacent to the
Building is changed by any competent authority and such taking or change of
grade makes it necessary or desirable to substantially remodel or restore the
Building, Landlord shall have the right to cancel this Lease upon not less than
sixty (60) days’ notice prior to the date of cancellation designated in the
notice. No money or other consideration shall be payable by Landlord to Tenant
for the right of cancellation, and Tenant shall have no right to share in any
condemnation award, or in any judgment for damages, or in any proceeds of any
sale made under any threat of condemnation of taking. Nothing in this Section shall
prevent Tenant from making and pursuing a claim against the condemning
authority in its own right for termination of its leasehold interest. If this
Lease is not canceled, the Lease shall continue in full force and effect, with
abatement or reduction of Rent equal to the rentable square footage affected.

 

SECTION 22

 

SUBORDINATION TO MORTGAGES AND DEEDS OF TRUST

 

22.01                     Lease Subordinate to Mortgages.

 

(a)                                  Subject to the terms hereof, this Lease and
the rights of Tenant shall be and are hereby made subject and subordinate to
the lien of any mortgages or deeds of trust now or hereafter existing against
the Building, the Property or both, and to all renewals, modifications,
consolidations, replacements and extensions thereof and to all advances made
now or in the future. Tenant, or its successors in interest, shall upon
Landlord’s request, execute and deliver upon the demand of Landlord any and all
instruments desired by Landlord, subordinating this Lease to any mortgage or
deed of trust within ten (10) business days after notice from Landlord
demanding their execution. The notice may be given in the manner provided for
giving notice below.

 

(b)                                 The subordination of this Lease to any future
mortgage(s) and/or deed(s) of trust shall be conditioned upon the holder
thereof executing a non-disturbance agreement (a “Non-Disturbance Agreement”),
in recordable form, by the terms of which such holder agrees not to disturb the
possession and other rights of Tenant under or pursuant to this Lease during
the Term, as the same may be extended, so long as Tenant is not in default
hereunder beyond the expiration of all applicable notice and cure periods, and
in the event of acquisition of title, or coming into possession, by said holder
through foreclosure proceedings or otherwise, to accept Tenant as tenant of the
Premises under the terms and conditions of this Lease and to assume and perform
all of Landlord’s obligations hereunder. If at the time of delivery of
possession of the Premises to Tenant there shall be any mortgage or deed of
trust encumbering the Premises, Landlord shall obtain and deliver to Tenant,
within thirty (30) days after the date of such delivery of possession, a
Non-Disturbance Agreement in the form and containing the terms referenced
above.

 

22.02                     Tenant’s Notices. In the event of any act or omission by
Landlord under this Lease which would give Tenant the right to terminate this
Lease, or to claim a partial or total eviction, Tenant will not exercise any
such right until it has given written notice (by United States certified or
registered mail, postage prepaid) of such act or omission to the holder of any
mortgage or deed of trust on the Property (whose names and addresses Landlord
agrees will be furnished to Tenant on request) with a copy to Joel C. Davis,
Dietze & Davis, P.C., P.O. Box 1530, Boulder, Colorado 80306; and
O’Connor Development, 6685 Gunpark Drive, Suite 210, Boulder, Colorado
80301.

 

 

SECTION 23

 

WAIVER

 

23.01                     The waiver by Landlord of any breach of any
term, covenant, or condition in this Lease shall not be deemed to be a waiver
of the term, covenant, or condition, or any subsequent breach of the same or
any other term, covenant or conditions. The acceptance of Rent hereunder shall
not be construed to be a waiver of any breach by Tenant of any term, covenant,
or condition of this Lease, it being understood and agreed that the remedies
given to Landlord shall be cumulative, and the exercise of any one remedy by
Landlord shall not be to the exclusion of any other remedy.

 

SECTION 24

 

Intentionally omitted

 

SECTION 25

 

PLATS AND RIDERS

 

25.01                     Appendices, clauses, plats, and riders, if
any, referred to in this Lease and signed or initialed by Landlord and Tenant
and affixed to this Lease are hereby incorporated in and made a part of this
Lease.

 

SECTION 26

 

SALE BY LANDLORD

 

26.01                     In the event of a sale or conveyance or
transfer by Landlord of its interest in the Property and/or in the Building
containing the Premises, and/or in this Lease, the same shall operate to
release Landlord from any future liability upon any of the covenants or
conditions, expressed or implied, contained in favor of Tenant, and in that
event, Tenant agrees to look solely to the responsibility of the successor in
interest of Landlord in and to this Lease. This Lease shall not be affected by
any such conveyance or transfer, and Tenant agrees to attorn to such purchaser
or transferee.

 

SECTION 27

 

RIGHT OF LANDLORD TO PERFORM

 

27.01                     All covenants and agreements to be performed
by Tenant under any of the terms of this Lease shall be performed by Tenant at
Tenant’s sole cost and expense, and without any abatement of Rent. If Tenant
shall fail to pay any sum of money, other than Rent, required to be paid by it,
or shall fail to perform any other act on its part to be performed, and the
failure shall continue for thirty (30) days after written notice by Landlord
unless the performance of the same requires a longer period of time to perform,
in which case Tenant shall have a reasonable amount of time to perform the
same, so long as Tenant commences to cure within said thirty (30) day period
and thereafter diligently prosecutes the same to completion, Landlord may, but
shall not be obligated to do so, and without waiving or releasing Tenant from
any obligations of Tenant, make any payment or perform any other act on Tenant’s
part to be made or performed as in this Lease provided. All sums so paid by Landlord
and all necessary incidental costs, together with interest at the rate of one
and one-half percent (1-1/2%) per month from the date of a payment by Landlord,
shall be payable to Landlord on demand, and Tenant covenants to pay any such
sums, and Landlord shall have (in addition to any other right or remedy of Landlord)
the same rights and remedies in the event of the non-payment thereof by Tenant,
as in the case of default by Tenant in the payment of Rent.

 

SECTION 28

 

ATTORNEY’S FEES

 

28.01                     In the event of any litigation or arbitration
between Tenant and Landlord to enforce any provision of this Lease or any right
of either party, the unsuccessful party to such litigation or arbitration shall
pay to the successful party all costs and expenses, including reasonable
attorney’s fees, incurred. Moreover, if Landlord, without fault, is made a
party to any litigation instituted by or against Tenant, 

 

 

Tenant shall indemnify
Landlord against, and protect, defend, and save it harmless from, all costs and
expenses, including attorney’s fees, incurred by Landlord. To the extent
permitted by law, Landlord and Tenant hereby waive the right to a jury trial in
any legal action or proceeding relating to this Lease.

 

SECTION 29

 

ESTOPPEL CERTIFICATE

 

29.01                     Tenant shall, at any time and from time to
time, upon not less than ten (10) business days’ prior written notice from
Landlord, execute, acknowledge, and deliver to Landlord a statement in writing
certifying that this Lease is unmodified and in full force and effect (or if
modified, stating the nature of such modification and certifying that this
Lease, as so modified, is in full force and effect) and the dates to which the
Rent and other charges are paid, and acknowledging that Tenant is paying Rent
on a current basis with no offsets or claims, and there are not, to Tenant’s
knowledge, any uncured defaults on the part of Landlord hereunder (or
specifying the offsets, claims, or defaults, if any are claimed). It is
expressly understood and agreed that any such statement may be relied upon by
any prospective purchaser or encumbrance of all or any portion of the Building
or by any other person to whom it is delivered. If Tenant fails to deliver the
statement within the aforesaid ten (10) business day period, and such
failure is not cured within five (5) business days after written notice
thereof is given by Landlord to Tenant, Tenant’s failure to so deliver the
statement shall constitute an Event of Tenant Default under this Lease.

 

SECTION 30

 

NOTICE

 

30.01                     Any notice from Landlord to Tenant or from
Tenant to Landlord shall be in writing and may be served personally or by mail.
If served by mail, notices shall be mailed by registered or certified mail,
return receipt requested, addressed as follows:

 

 

If
to Tenant:

(Prior
to the Initial Premises Commencement Date):

Thermo
BioStar, Inc.

6655
Lookout Road

Boulder,
CO 80301

Attn:
Facilities Director

 

With
copy to:

Thermo
Electron Corporation

81Wyman
Street, Waltham, MA 02454

Attn:
General Counsel

 

With
copy to:

CRESA
Partners

7979
E. Tufts Avenue Parkway, Suite 810

Denver,
CO 80237

Attn:
Bruce Glass and Jim Cloud

 

(After
the Initial Premises Commencement Date):

At
the Premises

Attn:
Facilities Manager

 

With
copy to:

Thermo
Electron Corporation

81
Lyman Street, Waltham, MA 02454

attn:
General Counsel

 

If
to Landlord:

At
the address designated in Section 4.02, or as from time to time
established for the payment of Rent. (With copy to Landlord’s mortgagee, if
applicable, pursuant to Section 22.02).

 

Notices
shall be effective when delivered, if served personally, or three (3) days
after mailing, if mailed. If no one at the Premises is available to accept the
notice, then it shall be deemed effective upon the second refusal or
uncompleted mail delivery attempt. Additional notice requirements are contained
in Section 22.02.

 

SECTION 31

 

RIGHTS RESERVED

 

31.01                     Landlord reserves the following rights,
exercisable without notice and without liability to Tenant for damage or injury
to property, person, or business, and without effecting an eviction,
constructive or actual, or disturbance of Tenant’s use or possession, or giving
rise to any claim for set-off or abatement of rent:

 

(a) To
change the Building’s name or street address, Landlord shall pay all reasonable
costs incurred by Tenant resulting from any such change of name or address;

 

(b) To
install, affix, and maintain any and all signs on the exterior and interior of
the Building, but not the interior of the Premises;

 

(c) To
retain at all times, and to use in appropriate instances as specifically set
forth herein, keys to all doors within and into the Premises. No locks or bolts
shall be altered, changed, or added without the prior written consent of
Landlord;

 

(d) To
have and retain a paramount title to the Premises, free and clear of any act of
Tenant.

 

SECTION 32

 

REAL ESTATE BROKER

 

32.01                     Tenant represents that Tenant has dealt
directly with Corporate Facility Consulting, Inc., dba CRESA Partners in
connection with this Lease, and that insofar as Tenant knows, no other broker 

 

 

negotiated or participated
in the negotiations of this Lease, or submitted or showed the Premises, or is
entitled to any commission in connection herewith. Landlord acknowledges prior
notice that CRESA Partners has acted on behalf of Tenant as Tenant’s Agent.
Payment of a Cooperating Brokerage Commission for services relative to this
Lease shall be the responsibility of the Landlord, pursuant to separate written
agreement between Landlord and CRESA Partners, and is a material condition of
the Lease. Any failure to pay the Cooperating Brokerage Commission to CRESA
Partners, as and when due, shall be a condition of Landlord Default.

 

SECTION 33

 

MISCELLANEOUS PROVISIONS

 

33.01                     (a) The words “re-enter”, or “re-entry”,
as used in this Lease, are not restricted to their technical legal meaning. The
term “Landlord”, as used in this Lease, means only the Landlord from time to
time, and upon conveying or transferring its interest, to a successor accepting
all obligations and liability of Landlord upon such transfer, Landlord shall be
relieved from any further obligation or liability pursuant to Section 27.

 

(b) Time
is of the essence of this Lease and of each and all of its provisions.

 

(c) Submission
of this instrument for examination or signature by Tenant does not constitute a
reservation of or an option for lease, and it is not effective as a lease or
otherwise until execution by both Landlord and Tenant.

 

(d) The
invalidity or unenforceability of any provision in this Lease shall not affect
or impair any other provisions.

 

(e) This
Lease shall be governed by and construed pursuant to the laws of the State of
Colorado.

 

(f)  Should any mortgagee or beneficiary under a deed of trust
require a reasonable modification of this lease, which modification will not
bring about any increased cost or expense to Tenant or will not in any other
way substantially or materially change the rights and obligations of Tenant or
otherwise negatively impact Tenant’s use and enjoyment of the Premises,
Building, and Property hereunder, then and in such event, Tenant agrees that
this Lease may be so modified.

 

(g) All
rights and remedies of Landlord under this Lease, or those which may be provided
by law, may be exercised by Landlord in its own name individually, or in its
name by its agent, and all legal proceedings for the enforcement of any rights
or remedies, including distress for rent, unlawful detainer, and any other
legal or equitable proceedings, may be commenced and prosecuted to final
judgment and be executed by Landlord in its own name individually or in its
name by its agent. Landlord and Tenant each represent to the other that each
has full power and authority to execute this Lease and to make and perform the
agreements herein contained, and Tenant expressly stipulates that any rights or
remedies available to Landlord, either by the provisions of this Lease or
otherwise, may be enforced by Landlord in its own name individually or in its
name by its agent or principal.

 

(h) The
marginal headings and titles to the paragraphs of this Lease are not a part of
this Lease and shall have no effect upon the construction or interpretation of
any part hereof.

 

(i) Tenant and Landlord acknowledge that there are no covenants,
representations, warranties, agreements, or conditions, expressed or implied,
collateral or otherwise, forming part of or in any way effecting or relating to
this Lease except as expressly set out in this Lease and the attachments and
exhibits to this Lease, and that the terms and provisions of this Lease may not
be modified or amended except by written instrument by both Landlord and
Tenant.

 

(j)
Landlord shall not change the name of the Building, nor shall Landlord
materially modify the Site, Building, or Premises, without Tenant’s prior
written consent, at Tenant’s discretion, which consent shall not be
unreasonably withheld or delayed. Landlord shall not name the Property,
Project, or Building after any competitor of Tenant.

 

 

SECTION 34

 

SUCCESSORS AND ASSIGNS

 

34.01                     Subject to the terms and provisions of Section 27,
the covenants and conditions contained in this Lease shall apply to and bind
the respective heirs, successors, executors, administrators, and assignees of
the parties hereto, and the terms “Landlord” and “Tenant” shall include the
successors and assignees of either such party, whether immediate or remote.

 

SECTION 35

 

QUIET ENJOYMENT

 

35.01                     Subject to the terms and provisions of this
Lease, Landlord covenants and agrees that Tenant, upon complying with all of
the obligations of Tenant under this Lease, shall peaceably and quietly enjoy
the Premises and Tenant’s rights under this Lease during its Term, without
hindrance by Landlord or any persons claiming under Landlord.

 

SECTION 36

 

RECORDING

 

36.01                     This Lease shall not be recorded by Landlord
or Tenant.

 

SECTION 37

 

RELIANCE BY LANDLORD

 

37.01                     As of the date of executing this Lease, the
Premises consist of unimproved real property. Landlord shall proceed with
construction of the Building and Premises in reliance upon Tenant’s covenants,
obligations and representations contained in this Lease. Tenant hereby
acknowledges and accepts Landlord’s reliance in this regard. As additional
consideration from Tenant to Landlord, Tenant hereby agrees to provide, after
proper written notice from Landlord, updated business financial statements then
available to the general public.

 

SECTION 38

 

OPTION TO EXTEND

 

38.01                     (a) Option to Extend Primary Term.
Tenant shall have two options to extend the term of this Lease (each an “Option
to Extend”) for an additional five years each (each an “Extended Term”) upon
all the same terms and conditions of this Lease, excepting only that Base Rent
shall be determined as provided in paragraph (b) below.

 

(b)                                 Base Rent during each Extended Term.

 

(i)                                     The monthly Base Rent payable during the each
Extended Term, as applicable, shall be Fair Market Rent. For purposes hereof, “Fair
Market Rent” shall mean the effective base rental rates (including periodic
adjustments to such base rental rates) and shall reflect an arms length
transaction with then current market economics including rent, expense
treatment, allowances, and other costs/inducements then being received for
premises of similar size and quality to the Premises, located in similar “flex”
buildings in the Colorado Tech Center area which are similar in size and
quality to the Property, leased for terms of approximately five years, and
otherwise subject to leases containing substantially similar terms as those
contained in this Lease. “Fair Market Rent” shall not include any rental value
attributable to improvements, alterations, fixtures, equipment, and personal
property installed in the Premises at Tenant’s expense.

 

(ii)                                  Each Option to Extend shall be exercised by
Tenant’s giving notice of such exercise to Landlord not less than one year
prior to the expiration of the term then in effect (i.e. the Initial Term or
the first Extended Term). Landlord will then provide written notice to Tenant
specifying Landlord’s proposed terms for extension of the term of the Lease for
the applicable Extended Term, no less than eleven (11) months prior to the
expiration of the term then in effect. Tenant shall then have no less than
thirty (30) days to notify Landlord in writing of its desire to negotiate terms
for extension. If, eight (8) months prior to the expiration of the term
then in effect, the parties have not reached agreement, each party 

 

 

shall appoint an Appraiser
(hereinafter defined) and shall give notice to the other party of the identity
of the Appraiser no later than seven and one half (71/2) months prior to the
expiration of the term then in effect. For purposes hereof, “Appraiser” means a
real estate broker or MAl designated appraiser, in either case with not less
than 5 years of full time commercial appraisal or brokerage experience in the
Louisville, Colorado area and with no prior business dealings with the party
appointing such Appraiser.

 

If
either party fails to timely appoint an Appraiser, the sole Appraiser appointed
shall determine the Base Rent to be charged during the applicable Extended
Term, based on the criteria described in paragraph (b)(i) above. If two
Appraisers are appointed, they shall 
immediately meet and attempt to agree upon such Base Rent. If they are
unable to do so within 15 days after their first meeting, they shall jointly
appoint a third Appraiser and the third Appraiser shall make such determination
within 10 days of his/her appointment.

 

The determination of Base
Rent as provided herein shall be binding upon the parties hereto. Promptly upon
such determination, the parties shall execute an amendment specifying the Base
Rent payable during the applicable Extended Term.

 

If Tenant elects to exercise
Tenant’s second Option to Extend then costs excluded from Operating Costs as
described at 5.03(b)(xi) and 5.03(b)(xvii) of this Lease shall be included as
operating expense and recovered from Tenant as follows:

 

1) Such costs shall be
amortized over the extended useful life of asset;

 

2) Monthly amortization will
be recovered by Landlord from Tenant over the remaining extended term of the
Lease.

 

SECTION 39

 

Intentionally omitted.

 

SECTION 40

 

REFERENCE TO RIDER

 

The
Rider attached hereto and made a part hereof contains additional provisions of
this Lease.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the respective dates
set forth below with the intent to be legally bound thereby as of the Effective
Date of this Lease first above set forth,

 

	
   

  	
  LANDLORD

  
	
   

  	
   

  
	
   

  	
  THE PARK AT CTC, LLC, a
  Colorado limited

  
	
   

  	
  Liability company,

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  June 25

  	
  , 2001

  	
  By:

  	
   

  	
    /s/Donald J.
  Marcotte

  	
   

  
	
   

  	
  Name:

  	
    Donald J.
  Marcotte

  	
   

  
	
   

  	
  Its:

  	
    Managing
  Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Thermo BioStar, Inc.,
  a Delaware Corporation

  
	
  Date:

  	
  June 25

  	
  , 2001

  	
  By:

  	
   

  	
    /s/Noel Doheny

  	
   

  
	
   

  	
  Name:

  	
    Noel Doheny

  	
   

  
	
   

  	
  Its:

  	
   

  	
    President

  	
   

  

 

 

This Rider is attached to
the lease between Thermo BioStar, Inc., a Delaware corporation, and The
Park at CTC, LLC, a Colorado limited liability company dated the 25th
day of June, 2001 (“Lease”). In the event of any conflict between the
provisions of the body of the Lease and the provisions of this Rider, the
provisions of this Rider shall control.

 

1.
Corporate Guaranty. The
Lease shall be guaranteed by the credit of Thermo Electron Corporation, a
Delaware corporation, according to the terms – and provisions of Exhibit F
attached to and made a part of the Lease.

 

2.
Expansion. In addition
to Tenant’s fixed growth into the Contiguous Space as described in the Lease,
Tenant shall have the option to lease additional space within the Building, as
follows:

 

The Building will be
designed, planned, and approved for construction at a total capacity of
approximately 105,000 usable/rentable square feet. The space in the Building totaling
approximately 30,000 usable/rentable square feet, adjacent to but not a part of
the Initial Premises and the Contiguous Space, shall be referred to herein as “Expansion
Space” as shown on Exhibit B-2. Tenant shall have the first right
to expand into the Expansion Space pursuant to the terms described below.
Tenant’s right to lease the Expansion Space shall be ongoing; available to
Tenant at any time throughout the term of the Lease.

 

In the event the Expansion
Space, or any portion thereof, is unencumbered by lease to third party
tenant(s), and Tenant provides written notice to Landlord on or prior to the
last day of the second (2nd) year of the initial Term, indicating its desire to
lease any portion of the then unencumbered Expansion Space, Tenant shall have
the right to lease such portion or all of the Expansion Space and the terms for
such expansion by Tenant shall be the same as those for the Premises pursuant
to the Lease, including the Expiration Date of the Lease. Base Rent for such
expansion space will be the then current Base Rent as stated in the Lease for
the Premises (per rentable square foot), and the Improvement Allowance stated
in the Lease will apply to the Expansion Space but will be prorated to reflect
the then remaining term of the Lease. Landlord shall be responsible for
completion and payment of construction of the Base Building Conditions for the
Expansion Space as described in the Base Building Conditions attached to the
Lease. Tenant shall then utilize its applicable Improvement Allowance for
construction of improvements within the Expansion Space.

 

In the event Tenant initiates
expansion after the second (2nd) year of the initial Term, the Base Rent for
the expansion space shall be in Fair Market Rent, as such term is defined in Section 38
of the Lease, and shall be determined using the same method set forth in such
section. The other terms for such expansion shall be subject to good faith
negotiation between Landlord and Tenant, and shall include appropriate
Improvement Allowances, and other terms and concessions pursuant to the then
current commercial office market for like space, and may include negotiation of
any applicable extension of the initial Lease Term desired by both parties at
that time. Any expansion of the Premises during the last year of the initial
Lease Term will require extension of the Lease for the entire Premises, subject
to the determination of Base Rent during such extended term in accordance with Section 38
of the Lease.

 

In the event Tenant desires
expansion space which cannot be reasonably accommodated in Expansion Space,
Landlord agrees to use commercially reasonable efforts to provide such
expansion space in other building(s) owned or controlled by Landlord within
close proximity to the Building, including other building(s) in similar
commercial office parks owned or controlled by Landlord. This may include good
faith discussion and negotiations for construction of a new facility by
Landlord for expansion or possibly for relocation of the entire Premises to a
location acceptable to Tenant. Any such expansion into other building(s) will
be subject to agreement by both parties in writing, to which neither party will
be obligated, but for which both parties agree to discuss and negotiate in good
faith.

 

Any expansion by Tenant
initiated during the first three (3) years of the initial Term shall
include a pro-rated cooperating brokerage commission to CRESA Partners, payable
by Landlord. Any expansion by Tenant initiated after the first three (3) years
of the initial Term shall include a cooperating brokerage commission to CRESA
Partners, payable by Landlord, if Tenant engages CRESA for assistance with its
expansion requirements at that time.

 

3.
Parking. Landlord will provide for
Tenant’s use, at no additional cost throughout the Term including any Extended
Term no less than 3.3 parking spaces per 1,000 rentable square feet of the
Premises. Such parking spaces shall be provided on the surface lot adjacent to
the Building, as shown on 

 

 

the final parking layout
attached as Exhibit B-2. The number of Tenant parking spaces will
increase with any expansion of Tenant’s Premises into the Contiguous Space and
any Expansion Space, at the same ratio as the original parking allotment.
Landlord shall designate “visitor” parking spaces near the front entry/access
to the Premises in sufficient amounts to allow easy access for all visitors of
Tenant. All parking for the Building will be on a first-come/first-served basis
unless Tenant desires to designate any reserved spaces which Tenant may so
designate with Landlord’s reasonable approval. Landlord shall use commercially
reasonable efforts to prevent any parties other than Tenant (or other tenant(s)
leasing space in the Building and lawfully parking on the Property at the same
ratio as Tenant’s parking ratio) from parking in the lot adjacent to the Building.
In the event other tenant(s) or third parties consistently utilize Tenant’s
parking areas in a manner other than described herein, Landlord shall use
commercially reasonable efforts to cause such parties to comply with parking
restrictions in order to allow Tenant access and use of its parking spaces as
described herein.

 

4.
Lease Assumption. Landlord acknowledges that Tenant has a current and
remaining lease obligation for 6655 Lookout Road in Boulder, Colorado under
that certain Net Lease Agreement dated September 10, 1992 between
Nationwide Life Insurance Company, as lessor, and BioStar, Inc., as
lessee, which was modified and extended pursuant to that First Amendment to Net
Lease Agreement dated March 4, 1998 (the “Lookout Road Lease”), and
Landlord is aware of the terms of the Lookout Road Lease through lease
documentation provided to Landlord by Tenant. Each of Tenant’s obligations
under the Lookout Road Lease is referred to herein as a “Lease Obligation” and
collectively as the “Lease Obligations”. Tenant and Landlord shall work in good
faith to eliminate or dispose of the Lease Obligations via lease termination
and/or via assignment or subletting of the Lookout Road Lease prior to the
expiration of the term of the Lookout Road Lease which is August 31, 2003
(the “Disposition”). The terms of such Disposition shall be approved in writing
by both Landlord and Tenant, and such approval shall not be unreasonably
withheld, provided that such Disposition shall contain a full and complete
release of Tenant from all Lease Obligations. In the event Landlord is
successful in negotiating a Disposition of the Lease Obligations prior to the
date that is six (6) months after the Initial Premises Commencement Date (“Disposition
Date”), Tenant shall pay the reasonable costs incurred by Landlord in obtaining
the Disposition, including concessions, allowances, brokerage commissions and
other standard marketing costs, and reasonable attorney fees, not to exceed the
amount Tenant would have otherwise paid as Base Rent under the Lookout Road
Lease for the period beginning on the effective date of the Disposition through
the Disposition Date. All other costs in obtaining the Disposition shall be
paid by Landlord. Landlord acknowledges that Tenant may reject any such
Disposition, or may require modification of the terms for any such Disposition,
if in the reasonable opinion of Tenant such Disposition creates a burden, risk,
or cost to Tenant in excess of the burden/risk/cost created by Landlord’s
assumption of the Lease Obligation as described in the following paragraph.

 

In any event and without
regard to whether Landlord has succeeded in negotiating an acceptable
Disposition, the Lease Obligations from and after the Disposition Date shall be
the obligation of Landlord as if Landlord were the tenant under the Lookout
Road Lease, subject to the rights of any third party tenant then subleasing any
or all of such space. Landlord shall make payments and shall assume all other
of Tenant’s responsibilities according to the Lookout Road Lease as of the Disposition
Date, and shall indemnify and hold Tenant harmless from and against any
liability or cost arising from the Lookout Road Lease and the Lease Obligations
other than such liability or costs due to the negligence or misconduct of
Tenant, its agents, employees, or contractors.

 

Notwithstanding the
foregoing, if Landlord is not successful in negotiating a successful
Disposition prior to the Disposition Date, then the Lease Obligations up to and
including the Disposition Date shall remain the obligation of Tenant.

 

5.
Purchase Option. Tenant shall have
a right and option to purchase the Property, including the Building and all
improvements to the site (“Purchase Option”) in accordance with the terms and
conditions of this section. Tenant shall exercise its Purchase Option, if at
all, by providing written notice thereof (“Purchase Notice”) to Landlord not
later than three (3) months prior to the fifth (5th) anniversary of the
initial Term. If Tenant delivers the Purchase Notice to Landlord within the
required time period, the Property shall be sold to Tenant for a purchase price
equal to $168.00 per rentable square foot of the Building (“Purchase Price”) to
be paid at the Closing (as defined herein). The terms, covenants and conditions
of such purchase and sale shall be set forth in a Purchase and Sale Agreement (“PSA”)
to be entered into by Landlord and Tenant prior to the fifth (5th) anniversary
of the initial Term. The PSA shall contain terms reasonably acceptable to both
Landlord, as seller, and Tenant, as purchaser, but shall at a minimum contain
the following provisions: (i) reasonable periods of time for Tenant to
conduct its due diligence review of title and inspections of the Property, including
obtaining an updated ALTA survey for 

 

 

the Property, (ii) a
requirement for the issuance of an ALTA owner’s policy of title insurance to
Tenant  in form and substance acceptable
to Tenant, including the appearance or deletion of exceptions and issuance of
endorsements as acceptable to Tenant, at the closing of the purchase and sale (“Closing”),
(iii) a representation by Landlord regarding hazardous materials
compliance, zoning compliance, and compliance with other laws relating to the
Property, (iv) an agreement by Landlord to cooperate with any §1031 exchange
by Tenant, and (v) a requirement that Landlord provide Tenant with tenant
estoppel certificates in form and substance reasonably acceptable to Tenant
from all other tenants of the Property. Landlord agrees that the Closing may be
coordinated in order to facilitate Tenant’s §1031 exchange, provided, however,
that the Closing shall not occur later than one hundred eighty (180) days after
the fifth (5th) anniversary of the initial Term.

 

[Remainder of page intentionally
left blank.]

 

 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Rider as of the respective dates
set forth below with the intent to be legally bound thereby as of the Effective
Date of this Lease first above set forth,

 

	
   

  	
  LANDLORD

  
	
   

  	
   

  
	
   

  	
  THE PARK AT CTC, LLC, a
  Colorado limited

  
	
   

  	
  Liability company,

  
	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
  June 25

  	
  , 2001

  	
  By:

  	
   

  	
    /s/Donald J.
  Marcotte

  	
   

  
	
   

  	
  Name:

  	
    Donald J.
  Marcotte

  	
   

  
	
   

  	
  Its:

  	
    Managing
  Member

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Thermo BioStar, Inc.,
  a Delaware Corporation

  
	
  Date:

  	
  June 25

  	
  , 2001

  	
  By:

  	
   

  	
    /s/Noel Doheny

  	
   

  
	
   

  	
  Name:

  	
    Noel Doheny

  	
   

  
	
   

  	
  Its:

  	
   

  	
    President

  	
   

  

 

 

EXHIBIT A

 

Commencement Date Agreement

 

 

EXHIBIT “A”

 

To the to the lease between
Thermo BioStar, Inc., a Delaware corporation and The Park at CTC, LLC, a
Colorado limited liability company dated the 25th day of June, (“Lease”).

 

LEASE COMMENCEMENT AGREEMENT

 

This Lease Commencement
Agreement, referenced in and attached to the Lease, is dated this               
day of                             ,
2001.

 

Landlord and Tenant
acknowledge and agree to the following:

 

1.               The actual Commencement Date of the Lease is
the
             day
of                 ,
200    .

2.               The Expiration Date of the Lease is the April 30,
2009.

3.               The size of the Building is          rentable/usable
square feet.

4.               The size of the Initial Premises is             rentable/usable
square feet.

5.               The size of the Contiguous Space is
              
rentable/usable square feet.

6.               Tenant’s Proportional Share for the Initial
Premises is                          %

7.               Tenant’s Proportional Share for the entire
Premises, upon occupancy of the Contiguous Space, is                            %

8.               Base Rent is as shown on the attached
schedule.

9.               Tenant’s Initial Improvement Allowance
applicable to the Initial Premises, based on $35.10 Per rentable square foot of
the Initial Premises is $                       .

10.         Tenant’s Contiguous Improvement Allowance,
applicable to the Contiguous Space, based on $35.10 per rentable square foot of
the Contiguous Space, is $            .

11.         The portion of the Contiguous Improvement
Allowance allocated for improvements by Landlord within the Contiguous Space,
is $      per rentable square foot of the Contiguous
Space, for a total of $                        .The
remainder of the Contiguous Improvement Allowance to be provided by Landlord to
Tenant on the date specified in the Lease, is $                                 
per rentable square foot of the Contiguous Space, for a total of $                                   .

 

Acknowledged and Agreed:

 

	
  Landlord:

  	
  The Park at CTC, LLC,

  	
  Tenant: Thermo BioStar, Inc.,

  
	
   

  	
  a Colorado limited

  	
  a
  Delaware corporation

  
	
   

  	
  liability company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Authorized Signature)

  	
  (Authorized Signature)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Title)

  	
   

  	
  (Title)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Date)

  	
   

  
					

 

 

EXHIBIT B-3

 

Plans and Drawings for the Building and site improvements

 

 

EXHIBIT C

 

Base Building Conditions

 

 

EXHIBIT “C”

 

To the lease between Thermo
BioStar, Inc., a Delaware corporation and the Park at CTC, LLC, a Colorado
limited liability company dated the 25th day of June, 2001 (“Lease”)

 

BASE BUILDING

 

For the purpose of
completing the Base Building and preparing the Building for improvements within
the Premises, Landlord shall provide, at Landlord’s sole cost, the following
Base Building Conditions, applicable to the entire Premises of approximately
75,000 rentable/usable square feet.

 

•                  Structure: Concrete tilt up walls, steel
columns, trusses and barjoist with metal roof deck

•                  Floors leveled to a tolerance of not more
than 1⁄4’ variance over 12’. Construction of the concrete slab/floor shall
include isolation of, and reasonable reinforcement OF, a small portion of the
floor (approximately 250 square feet), for compliance with specifications of
specified equipment of Tenant, to be located as determined by Tenant prior to construction.
Tenant shall submit specifications to Landlord for such floor
isolation/reinforcement, subject to review and reasonable approval of Landlord.

•                  Elevators, if required by code or other
regulations for use of any mezzanine or above ground level of the
Premises/Building. Landlord shall install one elevator for the use by Tenant
and one elevator for the use of other tenant(s) of the Building.

•                  Partitions demising the Premises from any “common
areas” of the Building (such as main hallways, lobbies, bathrooms, etc),
partitions demising the Premises from the Contiguous Space, and all partitions,
ceilings, and flooring for completion of any common areas, including but not
limited to any common area hallway partitions required to meet code. All
partitions installed as part of the Base Building shall be finished on the
Premises side. The common area/lobby side shall be painted/treated by Landlord
according to the final design for such areas. The demising walls for the Contiguous
Space shall be furred by Landlord, at Landlord’s cost, in preparation for
finish by Tenant to be paid from the Improvement Allowance.

•                  Heating, ventilation, and cooling systems, to
include an average of 350 sf/ton throughout the Premises. Distribution and
balancing will be paid from the Improvement Allowance. Tenant may supplement
the HVAC systems upon reasonable approval of Landlord, to be paid from the
Improvement Allowance

•                  2000 amp, 277/480 volt, 3-phased power
supplied to Tenant’s Operations areas, plus minimum 8 Watts/RSF supplied within
Tenant’s Office/Laboratory areas, the total supplied by no more than five (5) points
within the Premises. Distribution of power within the Premises will be paid fRom
the Improvement Allowance. Tenant may supplement the power supply upon reasonable
approval of Landlord, to be paid from the Improvement Allowance.

•                  Metering for electrical and gas services
supplied to the Building.

•                  Plumbing systems, to include minimum of three
inch (3”) water supply and four inch (4”) waste system throughout, including a
minimum of six (6) floor drains/sinks. Location of floor drains/sinks
shall be determined by Tenant. Landlord agrees to coordinate and complete the
Base Building slab/foundation/plumbing systems in a manner consistent with
Tenant’s plumbing plans in order to reduce Tenants costs associated with
drains, floor sinks, and general distribution of plumbing. Tenant may
supplement the plumbing systems upon reasonable approval of Landlord, paid from
the Improvement Allowance. If Landlord and Tenant agree that less than a 3”
line water supply will meet Tenant’s current and future requirements then such
reduced water supply will be used. Any construction cost savings resulting from
reducing water supply will be credited to Tenant.

•                  Ceiling height at a minimum of 9 feet clear
in Office/Laboratory areas, a minimum of 9 feet clear in the Operations areas,
and a minimum of 16 feet clear in up to 8,000 RSF of warehouse/shipping areas.

•                  Site and Building infrastructure, including
but not limited to curb and gutter, paving, ingress/egress, landscaping,
automobile parking, truck and trailer access/turning/parking, parking striping
and signage, other exterior signage (pursuant to city approval and permit),
drainage, and any other code related requirements.

•                  Two sets of mens/women’s restrooms (one set
within the Office/Laboratory area and one set within the Operations area) with
adequate fixtures for Tenant’s intended use, as determined by Tenant in its
reasonable discretion, in compliance with all codes and regulations.

•                  ESFR sprinkler systems in the warehouse and
standard sprinkler system throughout the core/shell and interior spaces,
distributed according to final Plans and Specifications.

 

 

•                  Communications infrastructure including
service entrance, and demark points at electrical and communications rooms,
for  voice services, and fiber. Landlord
warrants that communications fiber is available to the Building at no cost to
Tenant other than the specific monthly/usage charges pursuant to contract(s)
between Tenant and such service providers.

•                  Exterior lighting of the Site, Building, and
parking lot.

•                  Power lighting, on one face of the Building
for Tenant’s signage, and a monument sign adjacent to the Building (also
powered/lit) for exclusive use by Tenant and any other tenant within the
Building. Graphics and lettering for such signage are to be provided by Tenant,
subject to separate city approval and permits, to be paid from the Improvement
Allowance. Tenant shall have exclusive rights to Building and monument signage.

•                  Any additional costs associated with
increased standard floor loads for the second floor of Tenant’s Premises in
excess of the standard 40 lb. loading shall be paid for by Tenant.

 

Tenant may install a
security system for Tenant’s specific use, to be paid from the Improvement
Allowance or direct by Tenant, at Tenant’s discretion.

 

All portions of the Site,
Building, and Premises are to be constructed in a good and workmanlike manner
with new, high quality materials, and are to be constructed in compliance with
all applicable national and local codes including but not limited to ADA, fire
and safety, environmental, and other regulations having jurisdiction over the
project, as part of the Base Building Conditions.

 

 

EXHIBIT D

 

PROJECT SCHEDULE

 

 

 

 

 

 

 

 

 

 

EXHIBIT E

 

Work Letter

 

 

EXHIBIT E

 

WORK LETTER

 

This Work Letter, dated June 25,
2001, referenced in the Lease of even date herewith (the “Lease”) wherein
Thermo BioStar, Inc., a Delaware corporation (“Tenant”) has agreed to lease
certain office space from The Park at CTC, LLC, a Colorado limited liability
company (“Landlord”) at property known as The Park at CTC, Louisville,
Colorado, and more fully described in said Lease. Unless otherwise defined
herein, all capitalized terms used herein shall have the respective meanings
assigned in the Lease.

 

1.                                       Tenant Improvements.

 

(a)                                  Any improvements to be made within the
Premises for the benefit of Tenant, whether within the Initial Premises,
Contiguous Space or Expansion Space, which are not a part of the Base Building,
shall be referred to herein and in the Lease as the “Tenant Improvements”. The
parties hereto expressly acknowledge and agree that the Tenant Improvements
within the Initial Premises are to be constructed by Landlord pursuant to the
terms and conditions of this Work Letter. Where Tenant elects in conformance
with the Lease to require Landlord to perform the Tenant Improvements within
the Contiguous Space or Expansion Space, then this Work Letter shall be
applicable to the performance of the same, except that Landlord shall generate
a new Project Schedule for Tenant’s approval.

 

(b)                                   Within the time period set forth in the
Project Schedule, Landlord shall cause its architect (“Landlord’s Architect”,
which for purposes of the Initial Premises shall be Intergroup Architects) to
prepare drawings for the Tenant Improvements (“Tenant Improvement Drawings”)
contemplated by Tenant, and the same shall include (i) details of space
occupancy; (ii) sprinkler locations; (iii) reflected ceiling plans; (iv) partition
and door locations; (v) electrical and mechanical plans and components,
including details of capacity, location and configuration; (vi) telephone
plans noting any special requirements; (vii) fire safety and security
systems; (viii) detail plans; and (ix) finish plans and schedules.
Tenant shall have the right to approve all aspects of the Tenant Improvement
Drawings. Landlord’s Architect shall prepare and revise the Tenant Improvement
Drawings pursuant to Tenant’s comments and requirements and shall deliver to
Landlord and Tenant such revised documents, noting any changes from previous
versions for Landlord’s and Tenant’s approval. Review and revision of the
Tenant Improvement Drawings shall continue until the Tenant Improvement
Drawings are approved by Landlord and Tenant, which approval shall not be
unreasonably withheld or delayed. Both Landlord and Tenant shall work in good
faith and shall coordinate their respective efforts in order to complete the
drawings at the earliest reasonable time. The final Tenant Improvement
Drawings, when approved, by Landlord and Tenant, are referred to herein as the “Final
Plans”. Landlord or Tenant, as applicable, shall construct the Tenant
Improvements in a good and workmanlike manner in conformance with the Final
Plans.

 

2.                                       Cost and Performance of Tenant
Improvements.

 

(a)                                  Work Cost Estimate and Statement. Prior to the commencement of construction
of any of the Tenant Improvements shown on the Final Plans, Landlord will
submit to Tenant a written estimate of the cost to complete the Tenant
Improvements, which written estimate will be based on the Final Plans and a
guaranteed maximum price construction contract, taking into account any
modifications which may be required to reflect changes in the Final Plans
required by the City or County in which the Premises are located (the “Work
Cost Estimate”). Tenant will either approve the Work Cost Estimate or
disapprove specific items and submit to Landlord revisions to the Final Plans
to reflect deletions of and/or substitutions for such disapproved items.
Submission and approval of the Work Cost Estimate will proceed in accordance
with the Project Schedule. Upon Tenant’s approval of the Work Cost Estimate,
the same shall be hereinafter known as the “Work Cost Statement”.

 

(b)                                  Tenant will pay the cost of the Tenant
Improvements set forth in the Work Cost Statement, including but not limited to
actual costs incurred for all design and planning by Landlord’s Architect,
design or engineering firms, and the costs of construction, including labor,
Tenant’s project management, supervision, and cleanup costs. Landlord shall
apply the Improvement Allowance to the cost of the Tenant Improvements in
conformance with Section 3 of the Lease. If the cost of the Tenant Improvements
exceeds the Improvement Allowance, then Tenant shall pay the difference to
Landlord within thirty (30) days from written notice from Landlord, which
notice shall be accompanied in each instance by an invoice or other evidence of
the relevant work cost item. Tenant shall have the right to audit the books and
records of Landlord at any time during the construction of the Tenant
Improvements or within thirty (30) days of any demand by Landlord for payment
of excess costs above the Improvement 

 

 

Allowance for the purpose of
determining whether Landlord has appropriately and duly incurred any cost item
applied towards the cost of the Tenant Improvements. If Tenant’s audit reveals
that a work cost item was inappropriately charged against the cost of the
Tenant Improvements, then such work cost items shall be deducted from the total
cost of the Tenant Improvements, and reimbursed to Tenant if previously paid.

 

(c)                                   Before commencing any work relating to the
Tenant Improvements, Landlord shall seek competitive bids from not less than
three (3) general contractors for the guaranteed maximum price
construction contract. Tenant shall have the right to approve of the general
contractor selected. Tenant shall also have the right to approve of all cost
components of the construction contract to the extent they vary from the Work
Cost Statement. Subject to Tenant’s right to select an alternate contractor,
and subject to Landlord’s reasonable approval of any alternate contractor, the
parties have tentatively selected Golden Triangle Construction as the general
contractor for the construction of the Tenant Improvements within the Initial
Premises. The final general contractor selected by the parties shall request
not less than three (3) competitive bids for all subcontract work to be
performed, except where otherwise agreed between Tenant and Landlord, and will
provide to Tenant a breakdown of all costs prior to the commencement of any
work.

 

(d)                                   Notwithstanding any other provision of this
Work Letter, Tenant shall have the right to approve of all plans,
specifications, and costs prior to commencement of any and all Tenant
Improvements, and Landlord shall fully inform Tenant of any other expenses
related to the Tenant Improvements, whether from the Improvement Allowance or
to be paid directly by Tenant, including but not limited to any change orders,
prior to the commencement of such work.

 

(e)                                   The cost of Tenant Improvements to be paid
from (and to the extent of) the Improvement Allowance, shall include any and
all costs/fees associated with construction related activities for completion
of the Tenant Improvements which are approved by Tenant’s Project Manager,
including but not limited to (i) preparation and modification of the
Tenant Improvement Drawings by architect, design, or engineering firms, (ii) labor,
supplies, and other associated costs for physical construction of the Tenant
Improvements, (iii) consultant’s and vendor’s fees, (iv) Project
Management fees to Tenant’s Project Manager as described below, (v) cabling
within the Premises, and (vi) signage other than that which is provided by
Landlord as part of Landlord’s Work or which is otherwise normally provided by
Landlord at no cost to tenants of the Building, and (vii), all additional costs
or expenses attributable to any change in the Tenant Improvement Drawings. The
Improvement Allowance will not be used to pay for any bonding, or other costs
charged by, at the insistence of, or on behalf of Landlord, its employees, or
agents.

 

(f)                                     Landlord shall cause the general contractor
to perform the Tenant Improvements in accordance with the Final Plans and in a
good and workmanlike manner.

 

(g)                                  For purposes of this Work Letter and the
Lease, the term “substantially complete” shall mean when the general contractor
certifies in writing to Landlord and Tenant that Landlord has substantially
completed all of the Tenant Improvements or Base Building, as applicable, other
than decoration and minor “punch list” type items and adjustments which do not
materially interfere with Tenant’s access or use of the Premises.

 

3.                                       Acceptance of Base Building and
Tenant Improvements.

 

(a)                                  Base Building. Tenant’s Project Manager or other
representative authorized by Tenant shall conduct an inspection of the Base
Building with Landlord or Landlord’s authorized representative within twenty
one (21) days after written notification to Tenant’s Project Manager that
Landlord deems that the Base Building is substantially complete, and shall
provide Landlord with a “punch list” of all items to be completed and/or
corrected. Any items not on such “punch list” shall be deemed accepted by
Tenant, except for latent defects. Landlord shall correct any “punch list” item
or latent defect at its sole cost and expense within a reasonable period of
time thereafter, and in any event shall commence completion of the “punch list”
items and/or correction of a latent defect within three (3) days of
receipt of Tenant’s notice, and shall complete the “punch list” item or
correction of the latent defect no later than ten (10) days after such
notification, unless such completion or correction requires more than ten (10) days,
and Landlord has commenced the completion or correction within the three (3) day
period and diligently performs the same to completion. In the event Landlord
and Tenant do not agree on as to the completion or correction of any particular
“punch list” item, Landlord’s Architect shall make the final determination as
to whether the same has been completed or corrected.

 

(b)                                   Tenant Improvements. Landlord shall provide Tenant with ten (10) days
prior written notice of the date on which the Tenant Improvements shall be
substantially completed by Landlord. 

 

 

Tenant’s Project Manager or
other representative authorized by Tenant’s Project Manager shall then conduct
an inspection of the Premises with Landlord or Landlord’s representative within
seven (7) days of the date of substantial completion. Within said seven (7) day
period, a “punch list” will be prepared by Tenant’s Project Manager or another
authorized representative of Tenant, describing “punch list” items to be
completed and/or corrected by Landlord. Any items not on such “punch list”
shall be deemed accepted by Tenant, except for any latent defects. Landlord
shall correct any “punch list” item or latent defect at its sole cost and
expense within a reasonable period of time thereafter, and in any event shall
commence completion of the “punch list” items and/or correction of a latent
defect within three (3) days of receipt of Tenant’s notice, and shall
complete the “punch list” item or correction of the latent defect no later than
ten (10) days after such notification, unless such completion or
correction requires more than ten (10) days, and Landlord has commenced
the completion or correction within the three (3) day period and
diligently performs the same to completion. In the event Landlord and Tenant do
not agree on as to the completion or correction of any particular “punch list”
item, Landlord’s Architect shall make the final determination as to whether the
same has been completed or corrected.

 

(c)                                    Latent Defect. A “latent defect” is a defect in the
condition of the Base Building or Premises discovered within the first twelve
(12) months from the Commencement Date which defect is not observed during the
relevant walk-through inspection.

 

4.                                       Miscellaneous.

 

(a)                                  Landlord and Tenant shall work in good faith
for completion of construction of the Base Building and Tenant Improvements at
the lowest practical cost and at the earliest reasonable time consistent with
the intended scope, image, and budget/schedule for the project, subject to
the terms and provisions outlined in this Work Letter and the Lease. Landlord
acknowledges that this may include, but is not limited to, the possibility of
staged construction and/or temporary permits for construction and occupancy of
all or a portion of the Premises as of April 15, 2002.

 

(b)                                    This Work Letter is being executed in
conjunction with the Lease and is subject to each and every term and condition
thereof, including, without limitation, the limitations of Landlord’s and
Tenant’s liability set forth therein.

 

(
c)                                 Landlord’s Architect and the general
contractor selected shall be responsible for determining all physical
dimensions of the Premises and the Building which affects any work to be
performed by or for Tenant hereunder.

 

(d)                                   Tenant’s Project Manager is CRESA Partners. Tenant’s
Project Manager shall approve all plans and costs for Tenant Improvements, in
writing, prior to commencement of such work, shall approve all change orders,
in writing, prior to commencement of work related to any such change orders,
and shall approve all invoices and payment requests prior to disbursement by
Landlord of any related funds from the Improvement Allowance.

 

Dated this 25th day
of June, 2001.

 

	
  Landlord:

  	
  Tenant:

  
	
  The Park at CTC, LLC,

  	
  Thermo BioStar, Inc.,
  a Delaware corporation

  
	
  A Colorado limited
  liability

  	
   

  
	
  Company

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Donald J. Marcotte

  	
   

  	
  By:

  	
  /s/Noel Doheny

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Donald J. Marcotte

  	
   

  	
  Name:

  	
  Noel Doheny

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Managing Director

  	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
  6/25/01

  	
   

  	
  Date:

  	
  6.25.01

  	
   

  

 

 

EXHIBIT F

 

Guaranty

 

 

Exhibit F

 

GUARANTY

 

Thermo
Electron Corporation, a
Delaware corporation (“Guarantor”), hereby guarantees the payment and/or
performance to The Park at CTC, LLC, a
Colorado limited liability company, and/or assigns (“Obligee”) of any and all
obligations of Thermo  BioStar, Inc., a Delaware corporation (“Thermo BioStar”),
under that certain Lease dated June 25, 2001 by and between Obligee, as landlord,
and Thermo BioStar, as tenant, together with any extensions, modifications or
novations thereof.

 

GENERAL TERMS

 

The Guarantor waives
diligence by Obligee in collection of any indebtedness or other obligation
guaranteed herein; notice of nonpayment, protest, notice of protest or other
such notice.

 

The Obligee may:

 

Grant renewals, extensions
or modifications of the obligation or indebtedness, with prior approval of
Guarantor; surrender or release any and all security or collateral; release
co-guarantors if any; all without affecting the Guarantor’s obligations herein.

 

The Obligee shall not have
to:

 

First institute suit against
Thermo BioStar prior to demanding payment under this guaranty; exhaust any
remedies it may have against Thermo BioStar; give notice of acceptance of this
guarantee; and may in its discretion seek to enforce this guarantee solely
against Guarantor; provided, however, that Obligee shall first be required to
apply any security deposit then held by Obligee to the performance of Thermo
BioStar’s obligations guaranteed hereunder;

 

This is the entire agreement
by guarantor and this agreement may be modified only by a written agreement
executed by Guarantor.

 

	
  Dated:

  	
    June 25,
  2001

  	
   

  	
   

  
	
   

  	
   

  
	
  Guarantor

  	
   

  
	
   

  	
   

  	
   

  
	
  Thermo Electron
  Corporation,

  	
   

  
	
  a Delaware corporation

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  Theo Melas-Kynazi

  	
   

  	
   

  
	
  Name: 

  	
  Theo Melas-Kynazi

  	
   

  	
   

  
	
  Its:

  	
   

  	
  CFO

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