Document:

Fourth Amendment to Lease

 Exhibit 10.1 
  
 ALTON PLAZA 
 FOURTH AMENDMENT TO LEASE 
 (Expansion of Premises) 
  
 THIS FOURTH AMENDMENT TO LEASE (this “Amendment”) dated for
reference purposes only as of August 31, 2005, is entered into by and between ALTON PLAZA PROPERTY, INC., a Delaware corporation (“Lessor” or “Landlord”), and ISTA PHARMACEUTICALS, INC., a Delaware corporation
(“Lessee” or “Tenant”). 
  
 RECITALS 
  
 A. Lessor’s predecessor in
interest, Aetna Life Insurance Company, and Lessee entered into that certain Lease Agreement dated September 13, 1996 (the “Original Lease”) for certain premises located at 15279 Alton Parkway, Suite 100, Irvine, California 92618
(the “Existing Premises”), which are located in the industrial complex commonly known as Alton Plaza Industrial Park (hereinafter, the “Park” or the “Complex”). The Existing Premises contain
approximately 13,448 square feet. Landlord and Tenant entered into that certain First Amendment to Lease dated as of June 27, 2001 (the “First Amendment”), that certain Second Amendment to Lease dated as of February 13, 2002 (the
“Second Amendment”), that certain Third Amendment to Lease dated as of August 12, 2004 (the “Third Amendment”) and that certain Addendum to Third Amendment to Lease dated as of September 15, 2004 (the “Third
Addendum”). Pursuant to the Third Amendment, the New Premises (located in the building commonly known as 15295 Alton Parkway, as more specifically described in the Third Amendment) were added to the Existing Premises. The Existing Premises
and the New Premises are hereinafter referred to collectively as the “Original Premises”. The Original Lease as amended by the First Amendment, the Second Amendment, the Third Amendment and the Third Addendum is hereinafter referred
to as the “Lease”. The New Expiration Date for the Original Premises is October 31, 2009. 
  
 B. Landlord and Tenant presently desire to amend the Lease to, provide for the addition of certain additional premises to the Lease. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and conditions
contained herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 1. Definitions. Unless otherwise specifically set forth herein, all capitalized terms used herein shall have the same meanings as set forth in the
Lease. 
  
 2. Addition of the 15273 Premises. The increment
of space located at 15273 Alton Parkway, commonly known as Suites 100 and 200 and labeled “15273 Premises” on the attached Exhibit A-4 shall be added to the Premises covered by the Lease as provided herein. Landlord and
Tenant agree that initially for the purpose of the Lease and this Amendment, Suite 100 of the 15273 Premises shall be deemed to contain approximately 5,157 square feet of space (hereinafter, the “Suite 100 Premises”) and Suite 200
of the 15273 Premises shall be deemed to contain approximately 4,705 square feet of space (hereinafter, the “Suite 200 Premises”). The parties hereto acknowledge that the Suite 100 Premises are currently occupied by a third party
and that the lease with respect to the Suite 100 Premises is scheduled to expire on October 31, 2005. Landlord agrees to use diligent and commercial reasonable efforts to cause the current occupant of the Suite 100 Premises to vacate its premises on
or before October 31, 2005. Landlord shall tender possession of 

 
the Suite 100 Premises promptly following the vacation of same by the current occupant thereof. If Landlord has been unable to deliver possession of the
Suite 100 Premises on or before January 1, 2006, Tenant shall have the right to terminate the Lease as to the Suite 100 Premises by delivery of written notice to Landlord at any time after January 1, 2006 and prior to delivery of the Suite 100
Premises to Tenant. The term of the Lease with respect to the Suite 200 Premises shall commence on the Suite 200 Commencement Date (as defined below) and the term of the Lease with respect to the Suite 100 Premises shall commence on the Suite 100
Commencement Date (as defined below). As used herein, the date on which Landlord has Substantially Completed the Suite 200 Work (as defined below) shall be the “Suite 200 Commencement Date” and the date on which Landlord has
delivered possession of the Suite 100 Premises to Tenant as required herein (as defined below) shall be the “Suite 100 Commencement Date”. The Suite 200 Premises shall become part of the “Premises” on the Suite 200
Commencement Date and shall remain a portion of the “Premises” (as defined below) throughout the 15273 Premises Term (as defined below). As of the Suite 200 Commencement Date, the Basic Lease Information Page of the Lease shall be modified
to provide that the “Premises” consists of approximately 39,582 square feet (the combined Suite 200 Premises and the Original Premises). The Suite 100 Premises shall become part of the “Premises” on the Suite 100 Commencement
Date and shall remain a portion of the “Premises” throughout the remainder of the 15273 Premises Term. As of the Suite 100 Commencement Date, the Basic Lease Information Page of the Lease shall be modified to provide that the
“Premises” consists of approximately 44,739 square feet (the combined 15273 Premises and the Original Premises). The Suite 200 Commencement Date shall be confirmed in writing by the parties following Substantial Completion of the Suite 200
Work and the Suite 100 Commencement Date shall be confirmed in writing by the parties following delivery of possession of the Suite 100 Premises to Tenant. 
  
 3. Planning and Phasing of Work. 
  
 3.1 Phasing of Work. The parties hereto acknowledge that the Work (as used herein, the “Work” shall refer to the
Suite 100 Work and the Suite 200 Work, each as defined below) shall be performed in two stages as more specifically provided in this Section 3. 
  
 3.2 Architect. The architect for the Work shall be H. Hendy Associates (the “Architect”). The parties acknowledge
that Tenant has already engaged Architect to perform certain preliminary design work in connection with the proposed Work, the cost of which shall be included in Total Construction Costs (as defined below). Within three (3) business days of the date
hereof, Tenant shall meet with the Architect to discuss its program and facility requirements (“Program”) for the Suite 200 Premises and the nature and extent of all improvements that Tenant proposes to install in the Suite 200
Premises and at such meeting, shall provide the Architect with all necessary data and information requested by the Architect to prepare initial Program documents and then space plans therefor as required by this Section 3. 
  

	A.	SUITE 200: IMPROVEMENTS IN SUITE 200 PREMISES 

  
 3.3 Preparation and Delivery of Suite 200 Space Plan. Within twelve (12) business days of the date hereof, with respect to the
Suite 200 Premises, Tenant shall deliver to Landlord a pricing plan prepared by the Architect depicting improvements to be installed in the Suite 200 Premises sufficient for preliminary pricing (the “Suite 200 Space Plan”). On or
before the expiration of ten (10) business days from its receipt of the Suite 200 Space Plan, Landlord shall deliver to Tenant (i) a preliminary cost estimate to complete the work depicted in the Suite 200 Space Plan (“Suite 200
Budget”), (ii) a preliminary project schedule (“Suite 200 Project Schedule”), and 

 
(iii) the contractors’ general conditions and fee bid as described in Section 4.1 below. Tenant shall notify Landlord whether it approves of the
scope of the Suite 200 work outlined in the submitted Suite 200 Budget and Project Schedule and Landlord and Tenant shall select the general contractor for the Suite 200 Work within three (3) business days after Landlord’s submission thereof or
such longer period as reasonably necessary. If Tenant disapproves of the scope of the Suite 200 work outlined in the submitted Suite 200 Budget and/or Project Schedule within such three (3) business day period, then Tenant shall notify Landlord
thereof specifying in reasonable detail the reasons for such disapproval, in which case Landlord shall within three (3) business days after such notice or such longer period as reasonably necessary to revise the scope of work, revise such Suite 200
Budget and/or Project Schedule, as the case may be, in accordance with Tenant’s objections and submit the revised Suite 200 Budget and/or Project Schedule, as the case may be, to Tenant for its review and approval. Tenant shall notify Landlord
in writing whether it approves of the scope of the Suite 200 work outlined in the resubmitted Suite 200 Budget and/or Project Schedule, as the case may be, within two (2) business days after its receipt thereof. This process shall be repeated until
the Suite 200 Budget and Project Schedule have been finally approved by Tenant and Landlord. If Tenant fails to notify Landlord that it disapproves of the initial Suite 200 Budget and/or Project Schedule within three (3) business days (or, in the
case of a resubmitted Suite 200 Budget and/or Project Schedule within two (2) business days after the submission thereof), then Tenant shall be deemed to have approved the Suite 200 Budget and/or Project Schedule in question. Notwithstanding such
approval, the parties hereto acknowledge that the Suite 200 Budget and Suite 200 Project Schedule may be subject to revision pending approval of the Suite 200 Working Drawings as described in Section 3.9 below. 
  
 3.4 Suite 100 Budget. On or before May 1, 2006, with
respect to the Suite 100 Premises, Tenant shall deliver to Landlord a pricing plan prepared by the Architect depicting improvements to be installed in the Suite 100 Premises sufficient for preliminary pricing (the “Suite 100 Space
Plan”) On or before June 1, 2006, Landlord shall prepare a preliminary budget and project schedule for the Suite 100 Work (as defined below) (the “Preliminary Suite 100 Budget & Schedule”) and the contractors’
general conditions and fee bid as described in Section 4.1. Tenant shall notify Landlord whether it approves of the scope of the Suite 100 work outlined in the submitted Preliminary Suite 100 Budget & Schedule and Landlord and Tenant
shall select the general contractor for the Suite 100 Work within three (3) business days after Landlord’s submission thereof or such longer period as reasonably necessary. If Tenant disapproves of the scope of the Suite 100 work outlined in
the submitted Preliminary Suite 100 Budget & Schedule within such three (3) business day period, then Tenant shall notify Landlord thereof specifying in reasonable detail the reasons for such disapproval, in which case Landlord shall within
three (3) business days after such notice or such longer period as reasonably necessary to revise the scope of work, revise such Preliminary Suite 100 Budget & Schedule in accordance with Tenant’s objections and submit the revised
Preliminary Suite 100 Budget & Schedule to Tenant for its review and approval. Tenant shall notify Landlord in writing whether it approves of the scope of the Suite 100 work outlined in the resubmitted Preliminary Suite 100 Budget & Schedule
within two (2) business days after its receipt thereof. This process shall be repeated until the Preliminary Suite 100 Budget & Schedule have been finally approved by Tenant and Landlord. If Tenant fails to notify Landlord that it disapproves of
the initial Preliminary Suite 100 Budget & Schedule within three (3) business days (or, in the case of a resubmitted Preliminary Suite 100 Budget & Schedule within two (2) business days after the submission thereof), then Tenant shall be
deemed to have approved the Preliminary Suite 100 Budget & Schedule in question. Notwithstanding such approval, the parties hereto acknowledge that the Preliminary Suite 100 Budget & Schedule may be subject to revision pending approval of
the Suite 100 Working Drawings as described in Section 3.9 below. 

 3.5 Suite 200 Working Drawings. Within twenty (20) business days of the approval
of the Suite 200 Budget, Suite 200 Project Schedule and selection of the Contractor for the Suite 200 Work, Landlord shall cause Architect to prepare final working drawings of all improvements to be installed in the Suite 200 Premises based on the
approved Suite 200 Space Plan and deliver the same to Tenant for its review and approval (which approval shall not be unreasonably withheld, delayed or conditioned); such 20-business day period shall be extended due to any delays in Architect’s
preparation of same which is outside of Landlord’s control. Such Suite 200 working drawings shall be prepared by the Architect (and if necessary, engineers) (whose fees shall be included in the Total Construction Costs (as defined below)).
Tenant shall notify Landlord whether it approves of the submitted Suite 200 working drawings within two (2) business days after Landlord’s submission thereof. If Tenant disapproves of such Suite 200 working drawings, then Tenant shall notify
Landlord thereof specifying in reasonable detail the reasons for such disapproval, in which case Landlord shall, within three (3) business days after such notice or such longer period as reasonably necessary, revise such Suite 200 working drawings
in accordance with Tenant’s objections and submit the revised Suite 200 working drawings to Tenant for its review and approval. Tenant shall notify Landlord in writing whether it approves of the resubmitted Suite 200 working drawings within one
(1) business day after its receipt thereof. This process shall be repeated until the working drawings have been finally approved by Landlord and Tenant. If Tenant fails to notify Landlord that it disapproves of the initial Suite 200 working drawings
within three (3) business days (or, in the case of resubmitted working drawings, within one (1) business day) after the submission thereof, then Tenant shall be deemed to have approved the working drawings in question. Any delay caused by
Tenant’s failure to respond within the time periods set forth in this Section 3.5 as to such Suite 200 working drawings shall constitute a Tenant Delay (defined below). As used herein, “Suite 200 Working Drawings” shall
mean the final Suite 200 working drawings approved by Landlord and Tenant, as amended from time to time by any approved changes thereto approved by Landlord and Tenant, and “Suite 200 Work” shall mean all improvements to be
constructed in the Suite 200 Premises in accordance with and as indicated on the Suite 200 Working Drawings. Landlord’s approval of the Suite 200 Working Drawings shall not be a representation or warranty of Landlord that such drawings are
adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto. Tenant shall, at Landlord’s request, sign the Suite 200 Working Drawings to evidence its review and approval thereof. After the Suite 200 Working
Drawings have been approved, Landlord shall cause the Suite 200 Work to be performed in accordance with the Suite 200 Working Drawings. Landlord shall cause the Contractor to construct the Suite 200 Work to comply with the Suite 200 Working Drawings
and Legal Requirements. 
  
 3.6 Suite 200
Budget. Upon approval of the Suite 200 Working Drawings by Tenant and Landlord, and subject to the provisions of Section 3.5 above, Landlord shall cause the Suite 200 Contractor (as defined below) to submit the Suite 200 Work for bid by
all necessary subcontractors in accordance with the provisions of Section 4.3. Upon selection of the subcontractors, Landlord shall provide to Tenant, prior to commencement of construction of the Suite 200 Work, a complete budget
(“Suite 200 Final Budget”) showing all line items of the Suite 200 Work and the schedule of distribution of the Construction Allowance (as defined below) with respect to the Suite 200 Work. Tenant shall approve or disapprove the
Suite 200 Final Budget within five (5) business days of receipt, such approval not to be unreasonably conditioned or withheld. If Tenant fails to notify Landlord that it disapproves of the Suite 200 Final Budget within such five (5) business day
period, then Tenant shall be deemed to have approved the Suite 200 Final Budget. 

	B.	SUITE 100: IMPROVEMENTS IN SUITE 100 PREMISES 

  
 3.7 Preparation and Delivery of Suite 100 Space Plan. On or before June 1, 2006, with respect to Suite 100, Tenant shall deliver to
Landlord: (a) a Program document indicating the square footage requirements for each department, and (b) a space plan prepared by the Architect depicting improvements to be installed in the Suite 100 Premises (the “Suite 100 Space
Plan”). 
  
 3.8 Suite 100 Working
Drawings. Within ten (10) business days after Landlord and Tenant’s approval of the Suite 100 Space Plan and selection of the Contractor for the Suite 100 Work, Landlord shall cause Architect to prepare final working drawings of all
improvements to be installed in Suite 100 based on the approved Suite 100 Space Plan and deliver the same to Tenant for its review and approval, which approval shall not be unreasonably withheld, delayed or conditioned; such 10-business day period
shall be extended due to any delays in Architect’s preparation of same which is outside of Landlord’s control. Such working drawings shall be prepared by the Architect, and if necessary, engineers (whose fees shall be included in the Total
Construction Costs). Tenant shall notify Landlord whether it approves of the submitted Suite 100 working drawings within two (2) business days after Landlord’s submission thereof. If Tenant disapproves of such Suite 100 working drawings, then
Tenant shall notify Landlord thereof specifying in reasonable detail the reasons for such disapproval, in which case Landlord shall, within three (3) business days after such notice or such longer period as reasonably necessary, revise such Suite
100 working drawings in accordance with Tenant’s objections and submit the revised working drawings to Tenant for its review and approval. Tenant shall notify Landlord in writing whether it approves of the resubmitted Suite 100 working drawings
within one (1) business day after its receipt thereof. This process shall be repeated until the working drawings have been finally approved by Landlord and Tenant. If Tenant fails to notify Landlord that it disapproves of the initial Suite 100
working drawings within three (3) business days (or, in the case of resubmitted working drawings, within one (1) business day) after the submission thereof, then Tenant shall be deemed to have approved the working drawings in question. Any delay
caused by Tenant’s failure to respond within the time periods set forth in this Section 3.8 as to such Suite 100 working drawings shall constitute a Tenant Delay (defined below). As used herein, “Suite 100 Working
Drawings” shall mean the final Suite 100 working drawings approved by Landlord and Tenant, as amended from time to time by any approved changes thereto approved by Landlord and Tenant, and “Suite 100 Work” shall mean all
improvements to be constructed in the Suite 100 Premises in accordance with and as indicated on the Suite 100 Working Drawings. Landlord’s approval of the Suite 100 Working Drawings shall not be a representation or warranty of Landlord that
such drawings are adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto. Tenant shall, at Landlord’s request, sign the Suite 100 Working Drawings to evidence its review and approval thereof. After the
Suite 100 Working Drawings have been approved, Landlord shall cause the Suite 100 Work to be performed in accordance with the Suite 100 Working Drawings. Landlord shall cause the Suite 100 Contractor (as defined below) to construct the Suite 100
Work to comply with the Suite 100 Working Drawings and Legal Requirements. As used herein, “Legal Requirements” shall mean all applicable laws, statutes, codes, governmental regulations and private restrictions then in effect as of
the date of Substantial Completion of the respective premises. As used herein, “Working Drawings” shall mean the Suite 100 Working Drawings and the Suite 200 Working Drawings. 
  
 3.9 Suite 100 Budget. Upon approval of the Suite 100
Working Drawings by Tenant and Landlord, and subject to the provision of Section 3.8 above, Landlord shall cause the Suite 100 Contractor to submit the Suite 100 Work for bid by all necessary subcontractors in accordance with the provisions
of Section 4.3. Upon selection of the subcontractors, Landlord shall provide to Tenant, prior to commencement of construction of the Suite 100 Work, a revised draft of the Preliminary Suite 100 Budget & Schedule (“Suite 100 Final
Budget”) showing all line items of 

 
the Suite 100 Work and the schedule of distribution of the Construction Allowance with respect to the Suite 100 Work. Tenant shall approve or disapprove the
Suite 100 Final Budget within five (5) business days of receipt, such approval not to be unreasonably conditioned or withheld. If Tenant fails to notify Landlord that it disapproves of the Suite 100 Final Budget within such five (5) business day
period, then Tenant shall be deemed to have approved the Suite 100 Final Budget. 
  
 4. Selection of General Contractor/Subcontractors. 
  
 4.1 Suite 200 Work. Within ten (10) business days of receipt of the Suite 200 Space Plan, Landlord shall seek competitive bids from
DPR Construction, Howard Building Corporation, ROEL Construction and Caliber Construction, or such other qualified contractor as mutually agreed to by Landlord and Tenant for the general conditions and fees each would charge for the cost of
constructing the Suite 200 Work (to be completed on or before the expiration of ten (10) weeks from commencement of such work. At the completion of the bidding process, Landlord shall submit to Tenant copies of all bids received. Landlord and Tenant
shall select the general contractor to perform the Suite 200 Work. Landlord and Tenant shall make such selection based on the following criteria: (i) lowest qualified general conditions and fee to complete the Suite 200 Work, (ii) completion
schedule, (iii) the reputation and experience of the contractor’s specific team assembled for this project, and in constructing the type of improvements which Tenant contemplates installing in the Premises, (iv) Tenant’s prior experience
with such general contractor and providing first-class materials and experience in connection with the installation of prefabricated pharmaceutical manufacturing environments, and (v) Landlord’s prior experience with such general contractor in
providing first class materials and/or service to the Complex. The contractor selected is hereinafter referred to as the “Suite 200 Contractor”. 
  
 4.2 Suite 100 Work. As soon as reasonably practicable following Landlord and Tenant’s approval
of the Suite 100 Working Drawings but in any event no later than the date which is five (5) business days following such approval, Landlord shall seek competitive bids from DPR Construction, Howard Building Corporation, ROEL Construction and Caliber
Construction or such other qualified contractor as mutually agreed to by Landlord and Tenant for the general conditions and fee each would charge for the cost of constructing the Suite 100 Work (to be completed on or before December 31, 2006). At
the completion of the bidding process, Landlord shall submit to Tenant copies of all bids received. Landlord and Tenant shall select the general contractor to perform the Suite 100 Work. Landlord and Tenant shall make such selection based on the
following criteria: (i) lowest qualified general conditions and fee to complete the Suite 100 Work, (ii) completion schedule, (iii) the reputation and experience of the contractor’s specific team assembled for this project, and in constructing
the type of improvements which Tenant contemplates installing in the Premises, (iv) Tenant’s prior experience with such general contractor and providing first class materials and experience in connection with the installation of prefabricated
pharmaceutical manufacturing environments, and (v) Landlord’s prior experience with such general contractor in providing first class materials and/or service to the Complex. The contractor selected is hereinafter referred to as the
“Suite 100 Contractor”. 
  
 4.3 Subcontractor Bids. Upon approval of the applicable Working Drawings, Landlord shall cause the applicable Contractor to submit the applicable Working Drawings for competitive bidding to qualified subcontractors approved by
Landlord, Tenant and Contractor based on the reputation and experience of each subcontractor in constructing the type of improvements which Tenant contemplates installing in the Premises, Tenant’s, Landlord’s and the Contractor’s
prior experience with such subcontractor(s) in providing first class materials and its experience in 

 
connection with the installation of the specified items. At the completion of the bidding process, the Contractor shall submit to Landlord and Tenant copies
of all subcontractors’ bids received and a trade by trade comparison analysis of each bidder’s proposal. Contractor, Landlord and Tenant shall then make the final selection based upon the lowest qualified cost to complete the portion of
the work covered by such subcontractor’s bid, the completion schedule and the above mentioned criteria. 
  
 5. Construction Warranties. Each of the Suite 100 Contractor and the Suite 200 Contractor shall guarantee that the Work it performs shall be free
from any defects in workmanship and materials for a period of not less than one (1) year from the date of completion thereof. Each such Contractor shall be responsible for the replacement or repair, without additional charge, of all work done or
furnished in accordance with its contract which shall become defective within one (1) year after completion of the Work it performs. The correction of such Work shall include, without additional charge, all additional expenses and damages (excluding
consequential and punitive damages) in connection with such removal or replacement of all or any part of the Work, and/or the building and/or common areas of work which may be damaged or disturbed thereby. All such warranties or guarantees as to
materials or workmanship of or with respect to the Work shall be contained in the contract with the Contractor which shall be so written that such guarantees or warranties shall inure to the benefit of both Landlord and Tenant, as their respective
interests may appear, and can be directly enforced by either. 
  
 6. Construction. Landlord shall cause each of the Suite 100 Contractor and the Suite 200 Contractor to perform construction of the respective Work in accordance with the Suite 200 Working Drawings and the Suite 100 Work in accordance
with the Suite 100 Working Drawings, each in a good and workmanlike manner. Subject to Tenant’s payment of the Excess Costs (as defined in Section 11 below), Landlord will bear all costs and expenses to perform the Work shown on the Working
Drawings, including the cost of all permits and other governmental approvals, except as otherwise expressly provided herein. “Substantial Completion” of the Suite 200 Work or Suite 100 Work, as applicable, shall be deemed to have
occurred on the date on which (i) the Architect certifies that the Suite 100 Work or Suite 200 Work, as applicable, has been completed pursuant to the applicable Working Drawings, subject only to the completion or correction of the Punch List Items
(as defined below); (ii) a certificate of occupancy or temporary certificate of occupancy (or its equivalent) for the Suite 200 Premises or the Suite 100 Premises, as applicable, has been issued by the governmental agency responsible for issuing
such certificate in Orange County; and (iii) Landlord has delivered possession of the Suite 200 Premises or the Suite 100 Premises, as applicable, to Tenant in the condition required under this Amendment. Landlord or its affiliate or agent shall
supervise the Work, make disbursements required to be made to the Contractor(s) and other vendors as required to complete the Work, and act as a liaison between the Contractor(s) and Tenant’s Representative and coordinate the relationship
between the Work, the Building and the Complex. Kathy McGinley shall be designated as “Tenant’s Representative” in connection with the Work. In the event Tenant disputes whether or not Substantial Completion has occurred,
Tenant shall notify Landlord within five (5) business days after receipt of the Completion Notice. Such dispute shall be mutually resolved by Landlord and Tenant, each using its good faith commercially reasonable business judgment. Any change orders
shall require the approval of Landlord and Tenant’s Representative. In consideration for Landlord’s construction supervision services, Tenant shall pay to Landlord a construction supervision fee equal to five percent (5%) of the
Construction Allowance (excluding the construction supervision fee). 
  
 7. Limited Warranty. Landlord warrants that for thirty (30) days following: (i) the Suite 200 Commencement Date and (ii) the Suite 100 Commencement Date, respectively, the existing 

 
heat, air conditioning and ventilating (“HVAC”) equipment, and the existing electrical, lighting and plumbing and loading doors serving each
of the Suite 200 Premises and the Suite 100 Premises, respectively, are in good working order. Landlord shall repair any defective or malfunctioning component of such systems of which Landlord has received written notice from Tenant describing the
failure or malfunction within thirty (30) days of the Suite 200 Commencement Date with respect to the Suite 200 Premises and within thirty (30) days of the Suite 100 Commencement Date with respect to the Suite 100 Premises. The cost of repairing
such failure or malfunction shall not be charged to Tenant as an operating expense, repair cost or maintenance cost. In addition, Landlord shall deliver the 15273 Premises in broom-clean condition. 
  
 8. Punch List. “Punch List Items” shall mean minor
items of incomplete or defective work or materials in the improvements called for in the Working Drawings, which do not materially impair Tenant’s use of the 15273 Premises for the conduct of Tenant’s business therein. When Landlord
considers: (A) the Suite 200 Work to be Substantially Completed and (B) the Suite 100 Work to be Substantially Completed, Landlord will notify Tenant and within three (3) business days thereafter in each case, Landlord’s representative and
Tenant’s Representative shall conduct a walk-through of the Premises and identify any Punch List Items with respect to the Suite 200 Work or the Suite 100 Work, as the case may be. Neither Landlord’s representative nor Tenant’s
Representative shall unreasonably withhold his or her agreement on Punch List Items. Landlord shall use diligent and reasonable efforts to cause the Contractor to complete all Punch List Items within thirty (30) days after agreement thereon.

  
 9. Definition of Total Construction Costs. The entire
cost of performing the Work including design of the Work and preparation of the Tenant’s Program documents and test fits, the Suite 200 Space Plan, the Suite 100 Space Plan and the Working Drawings, including revisions, costs of construction
labor and materials, generator, dumb waiter, plan check and permit fees, electrical usage during construction and additional janitorial services, which costs shall be included in Contractor’s general conditions, general tenant signage, related
taxes, insurance costs, costs to repair and reuse or install new telephone and data equipment and cabling, and the construction supervision fee referenced in Section 5 of this Amendment, are herein collectively called the “Total
Construction Costs”. The Total Construction Costs in excess of the Construction Allowance (hereinafter defined) shall be paid by Tenant. Upon approval of the Suite 200 Working Drawings and selection of the Contractor, Tenant shall promptly
(a) execute a work order agreement prepared by Landlord which identifies such drawings and itemizes the Total Construction Costs and sets forth the Construction Allowance, and (b) pay to Landlord the amount by which the Total Construction Costs is
expected to exceed the Construction Allowance (such prepaid amount is hereinafter referred to as the “Pre-Paid Amount”) on a pro rata basis monthly (based on percentage of completion) as construction of the Work progresses. No
changes in the Total Construction Costs, change order approvals or additions to any contracts shall be made by Landlord after the approval of the Suite 200 Final Budget by Tenant with respect to the Suite 200 Work and approval of the Suite 100 Final
Budget by Tenant with respect to the Suite 100 Work, in either case without Tenant’s written approval, which approval shall not be unreasonably withheld, conditioned or delayed. 
  
 10. Construction Allowance. Landlord shall provide to Tenant a construction allowance not to exceed $78,896.00 (the
“Construction Allowance”) to be applied toward the Total Construction Costs, as adjusted for any changes to the Work approved by Landlord and Tenant. The Construction Allowance shall not be disbursed to Tenant in cash, but shall be
applied by Landlord to the payment of the Total Construction Costs, if, as, and when the cost of the Work is actually incurred and paid by Landlord. The Construction Allowance must be used no later than 

 
December 31, 2006 or shall be deemed forfeited with no further obligation by Landlord with respect thereto. The foregoing limitation shall be extended one
day for each day of Landlord Delay (as defined in Section 13 below). 
  
 11. Excess Costs. As of the date of this Amendment, the parties anticipate that the Total Construction Costs will exceed the amount of the Construction Allowance. During the course of construction, once the
cost of constructing the Work has exceeded the amount of the Construction Allowance plus the Pre-Paid Amount, Landlord shall provide written notice thereof to Tenant. Following Landlord’s delivery of such notice to Tenant, Tenant shall be
obligated to pay for all billings from Landlord for the cost of the Work in excess of the Construction Allowance and the Pre-Paid Amount (collectively, the “Above-Allowance Amounts”). The payment of the Above-Allowance Amounts shall
be accomplished by increasing Tenant’s share of monthly disbursements provided in Section 9 above. Under no circumstances shall Landlord be required to pay for the Above-Allowance Amounts. Following Substantial Completion of the Work, if
the amount of the Total Construction Costs exceeds the sum of (i) the Construction Allowance, (ii) the Pre-Paid Amount, and (iii) the Above-Allowance Amounts, then Tenant shall be responsible for such excess costs (collectively, the “Excess
Costs”). Under no circumstances (except if to correct deficiencies in the Work which are brought to Landlord’s attention within the Warranty Period) shall Landlord be required to pay for any Excess Costs. Landlord will invoice Tenant
for such Excess Costs; such invoice shall include adequate supporting documentation for the Excess Costs. Tenant shall pay Landlord the amount of the Excess Costs within twenty (20) days of receipt of such invoice, provided that Tenant approves the
amount of the Excess Costs, such approval not to be unreasonably withheld, conditioned or delayed. 
  
 12. Payment of Costs. Except as otherwise set forth herein, Tenant shall pay Landlord for amounts due under this Amendment within twenty (20) days
of billing. Any unpaid portions, whether undisputed or disputed on which Landlord ultimately prevails, shall bear interest from the due date at the annual rate of two percent (2%) above the prime interest rate then being charged by Bank of America,
N.T. & S.A., Los Angeles Main Office, but not to exceed the maximum legal rate permitted to be charged on the date such interest shall commence to accrue. 
  

13. Delays. Tenant shall be responsible for, and shall pay to Landlord any and all costs and expenses incurred by Landlord in connection with
any delay in Substantial Completion caused by Tenant and any increase in the cost of Work caused by (i) any changes requested by Tenant in the Work shown on the Working Drawings (including any cost or delay resulting from proposed changes that are
not ultimately made), (ii) any failure by Tenant to timely pay any amounts due from Tenant hereunder, including any additional costs resulting from any change (it being acknowledged that if Tenant fails to make or otherwise delays making such
payments, Landlord may stop work on the Work rather than incur costs which Tenant is obligated to fund but has not yet done so and any delay from such a work stoppage will be a Tenant Delay), (iii) the inclusion in the Work of any so-called
“long lead” materials (such as fabrics, panellings, carpeting or other items that must be imported or are of unusual character or limited availability) which Landlord has informed Tenant, at the time Tenant selects such item(s), are
long-lead items, (iv) any failure by Tenant to respond to inquiries within the time provided in this Amendment or, if not specified, within commercially reasonable time periods, regarding the construction of the Work or in granting Tenant’s
approval of materials or finishes for the Work, or (v) any other delay requested or proximately caused solely by Tenant. Each of the foregoing is referred to herein as a “Tenant Delay”. Tenant Delays do not include delays in
governmental processing or delays caused by Landlord’s failure to perform its obligations hereunder (including preparing items and/or responding within the time periods set forth herein). Landlord 

 
shall provide Tenant written notice promptly following the occurrence of any Tenant Delay specifying Landlord’s good faith estimate of the duration
thereof. If Substantial Completion of the Suite 200 Work or the Suite 100 Work, as the case may be, is delayed as a result of a Tenant Delay, then the Suite 200 Commencement Date or the Suite 100 Commencement Date, as the case may be, shall be
deemed to be the date that Substantial Completion of the Suite 200 Work or the Suite 100 Work, as the case may be, would have occurred but for any Tenant Delay. In addition, if Tenant requests any changes to the Work described in the Space Plan or
the Working Drawings, then the net increased costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the Total Construction Costs. In addition, Tenant shall indemnify, protect, defend
and hold Landlord harmless from all claims arising from or in connection with all damages sustained by Landlord as a result of any Tenant Delay. As used herein, a “Landlord Delay” shall mean any delay in the Substantial Completion
of the Work that occurs due to Landlord’s failure to complete any action item on or before the due date required hereunder. In calculating the date of Substantial Completion of the Work, one day shall be deducted from the aggregate of Tenant
Delay days for each day of Landlord Delay. 
  
 14. Term.
Upon the Suite 200 Commencement Date, the term of the Lease for the 15273 Premises shall be extended (the “15273 Premises Term”) so that the expiration date of the Lease shall be the last day of the one hundred and twentieth (120th)
full calendar month following the Suite 200 Commencement Date (such date is hereinafter referred to as the “15273 Premises Expiration Date”). The 15273 Premises Expiration Date shall be confirmed in writing by the parties following
the occurrence of the Suite 100 Commencement Date. The 15273 Premises Term may be extended, at Tenant’s election, in accordance with the provisions of Exhibit K attached hereto. The New Extended Term for the Original Premises and
the 15273 Premises Term are not intended to be coterminous. 
  
 15. Base Rent. To reflect the addition of the 15273 Premises to the Lease, effective as of the Suite 200 Commencement Date with respect to the Suite 200 Premises and as of the Suite 100 Commencement Date with respect to the Suite 100
Premises, and continuing thereafter throughout the 15273 Premises Term, Tenant shall pay to Landlord Base Rent in advance on or before the first day of each calendar month, for the entirety of the 15273 Premises, as follows: 
  

							
	   Lease
  Months

	  	 Monthly Base Rent
 per square foot

	  	 Monthly
 Base Rent

	  	  
	       ***
	  	$	1.11	  	$	5,222.55
	         1
	  	$	1.11	  	$	10,946.82
	     2 – 3
	  	$	0.00	  	$	0.00
	     4 – 12
	  	$	1.11	  	$	10,946.82
	   13 – 24
	  	$	1.16	  	$	11,439.92
	   25 – 36
	  	$	1.21	  	$	11,933.02
	   37 – 48
	  	$	1.26	  	$	12,426.12
	   49 – 60
	  	$	1.31	  	$	12,919.22
	   61 – 72
	  	$	1.36	  	$	13,412.32
	   73 – 84
	  	$	1.41	  	$	13,905.42
	   85 – 96
	  	$	1.46	  	$	14,398.52
	   97 – 102
	  	$	1.51	  	$	14,891.62
	 103 – 120
	  	$	1.56	  	$	15,384.72

 ***During the period from the Suite 200 Commencement Date through the date immediately preceding the Suite 100
Commencement Date (the “Interim Period”), Tenant shall pay Base Rent with respect to the Suite 200 Premises at the rate of $1.11 per square foot or $5,222.55 per month. The first “Lease Month” of the 15273 Premises
Term shall be the period commencing on the Suite 100 Commencement Date (as such date may be accelerated pursuant to Section 13) and ending on the last day of the first (1st) full calendar month thereafter. The first (1st) monthly installment
of Base Rent with respect to the entirety of the 15273 Premises in the amount of $10,946.82 shall be payable contemporaneously with the execution of this Amendment by Tenant; payment for a partial month following the Suite 100 Commencement Date
shall be payable within five (5) days of the Suite 100 Commencement Date. 
  
 16. Modification of Tenant’s Share. To reflect the addition of the Suite 200 Premises to the Lease during the Interim Period, the provisions of Article 6 of the Lease shall apply to the Suite 200 Premises
and Tenant’s Share shall be 2.19% with respect to the Suite 200 Premises. To reflect the addition of the Suite 100 Premises to the Lease, effective as of the Suite 100 Commencement Date, the provisions of Article 6 of the Lease shall apply to
the entirety of the 15273 Premises and Tenant’s Share shall be 4.58% with respect to the entirety of the 15273 Premises. The first (1st) monthly installment of Operating Expenses, Tax Expenses and Common Area Utility Costs in the amount of
$2,524.67 for the entirety of the 15273 Premises shall be payable contemporaneously with the execution of this Amendment by Tenant; thereafter, the estimated amount of Tenant’s Share of the foregoing costs shall be payable on the first (1st)
day of each month beginning on the first (1st) day of the second (2nd) full calendar month of the 15273 Premises Term and otherwise in accordance with the terms of the Lease, as amended hereby; provided, however, during the Interim Period, Tenant
shall pay Operating Expenses, Tax Expenses and Common Area Utility Costs in the amount of $1,204.48 per month for the Suite 200 Premises. 
  
 17. Real Estate Brokers. Tenant represents and warrants that it has negotiated this Amendment directly with Studley, Inc. (“Tenant’s
Broker”) and CB Richard Ellis (“Landlord’s Broker”) and has not authorized or employed, or acted by implication to authorize or to employ, any other real estate broker or salesman to act for Tenant in connection with
this Amendment. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all claims by any other real estate broker or salesman claiming to represent Tenant and claiming entitlement to a commission, finder’s fee or
other compensation as a result of Tenant’s entering into this Amendment. Landlord shall pay a commission to Landlord’s Broker and Tenant’s Broker pursuant to separate agreements. Notwithstanding the foregoing, in no event shall
Landlord be required to pay Tenant’s Broker any construction management, space planning or project management fees in connection with this Amendment. 
  
 18. Parking. During the Interim Period, Tenant shall have use of sixteen (16) nonexclusive and undesignated parking spaces, subject to the terms of
the Lease. Commencing on the Suite 100 Commencement Date and throughout the remainder of the 15273 Premises Term, Tenant shall have use of thirty-three (33) nonexclusive and undesignated parking spaces (for the combined 15273 Premises), subject to
the terms of the Lease. 
  
 19. Signage. Subject to (i)
compliance with Landlord’s signage criteria, (ii) compliance with all applicable rules, regulations and laws, and (iii) the approval of any governmental authority with jurisdiction over the Complex, Tenant shall have the right, at Tenant’s
sole cost and expense, to install building-side signage similar to that on the Original Premises and building door signage with respect to the 15273 Premises. 

 20. Additional Security Deposit. Landlord is currently holding a security deposit in the amount of
$47,082.75 with respect to the Original Premises (the “Original Deposit”). Effective as of the execution of this Amendment by Tenant, the Security Deposit referenced in the Lease shall be increased to $77,852.19. Accordingly, upon
Tenant’s execution of this Amendment, Tenant shall deposit with Landlord the sum of $30,769.44. Upon the expiration of the term of the Lease with respect to the Original Premises (as such term may be extended), provided that Tenant has not been
in default under the Lease beyond applicable notice and/or cure periods more than once in any twelve (12) month period during the remainder of the term of the Lease with respect to the Original Premises (as such term may be extended), Landlord shall
refund the remaining portion of the Original Security Deposit to Tenant in accordance with the terms of the Lease, as amended hereby. 
  
 21. Authority. Each party hereto hereby covenants and warrants on its own behalf that (a) it is in good standing under the laws of the States of
California and Delaware, (b) it has full corporate power and authority to enter into this Amendment and to perform all its obligations under the Lease, as amended by this Amendment, and (c) each person (and all of the persons if more than one signs)
signing this Amendment on behalf of such party is duly and validly authorized to do so. 
  
 22. No Offer. Submission of this instrument for examination and signature by Tenant does not constitute an offer to lease or a reservation of or option for lease, and this instrument is not effective as a lease
amendment or otherwise until executed and delivered by both Landlord and Tenant. 
  
 23. Exhibits. Exhibits A-4, J-1 and K attached hereto shall be incorporated into the Lease, as amended hereby. 
  
 24. Entire Agreement. This Amendment, together with the Lease, constitutes the entire agreement between Landlord and
Tenant regarding the Lease and the subject matter contained herein and supersedes any and all prior and/or contemporaneous oral or written negotiations, agreement or understandings. 
  
 25. Incorporation. The Lease, as modified herein, remains in full force and effect, and the parties hereby ratify the
same. This Amendment shall be binding upon the parties and their respective successors and assigns. 
  
 26. SNDA. Concurrently with the execution of this Amendment, Landlord shall use commercially reasonable efforts to provide Tenant with a
commercially reasonable nondisturbance agreement for Tenant’s benefit (on its Lender’s standard form which is attached hereto as Exhibit J-1 (the “SNDA”) from the beneficiary of that certain Deed of Trust Security
Agreement, Fixture Filing and Financing Statement dated January 27, 2000 naming The Prudential Insurance Company of America (“Lender”) as the beneficiary and covering the Complex which was recorded on January 27, 2000, as Document
No. 20000047965, in the Official Records of Orange County, California (the “Mortgage”). Notwithstanding the foregoing, Landlord’s failure to obtain such agreement shall not constitute a default by Landlord hereunder provided
Landlord has employed diligent commercially reasonable efforts to obtain same from Lender. If Lender notifies Tenant that either (a) Lender is exercising its rights under the Mortgage following a default under the Mortgage, or (b) of Lender’s
succeeding to the Landlord’s interest under the Lease, and in either event, Tenant pays rents due under the Lease directly to Lender, then Landlord waives any and all claims against Tenant if Tenant responds to any such requests by Lender and
such payment to Lender shall be deemed a payment to Landlord for the purposes of the Lease. Tenant shall reimburse Landlord 

 
within ten (10) days of demand therefor for all costs charged by Lender in connection with Lender’s review and execution of the SNDA. 
  
 27. Use. Landlord hereby acknowledges and consents to the use of the
15273 Premises for the manufacture of pharmaceutical products which include Dangerous Drugs and Devices as defined in the Third Addendum. 
  
 28. Removal of Personal Property, Fixtures and Equipment/Restoration. Landlord hereby acknowledges that upon the expiration or earlier termination
of the Lease, Tenant shall be entitled to remove its personal property, trade fixtures and equipment, including without limitation, the pharmaceutical manufacturing environment or “clean room” to be installed in the 15273 Premises provided
Tenant repairs any and all material damage to the Premises caused by such removal. Notwithstanding any provision of the Lease to the contrary, upon the expiration or earlier termination of the Lease, upon removal of Tenant’s personal property,
trade fixtures and equipment, Tenant shall not be required to remove any leasehold improvements in Suite 100 which were in existence upon delivery of possession by Landlord, nor any of the improvements constructed in connection with the Suite 200
Work; provided, however, that Landlord may elect upon thirty (30) days’ written notice to Tenant to require Tenant to deliver the 15273 Premises to Landlord in a “vanilla shell” condition. 
  
 [SIGNATURES ON FOLLOWING PAGE] 

  
 IN WITNESS WHEREOF, Landlord
and Tenant have executed this Amendment as of the day and year first written above. 
  

									
	 LANDLORD:
	 	 	 	 TENANT:

			
	ALTON PLAZA PROPERTY, INC.,
a Delaware corporation	 	 	 	ISTA PHARMACEUTICALS, INC.,
a Delaware corporation
					
	 By:
	 	 /s/ Daniel J. Bradley
	 	 	 	 By:
	 	 /s/ Vicente Anido, Jr.

	 Name:
	 	 Daniel J. Bradley
	 	 	 	 Name:
	 	 Vicente Anido, Jr.

	 Title:
	 	 President
	 	 	 	 Title:
	 	 President and CEO

				
	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  
 EXHIBIT A-4

  
 Plan of 15273 Premises 

  
 EXHIBIT K 

 
 Renewal Option for 15273 Premises 
  
 Tenant shall have the right to renew the term of the Lease with respect to
the 15273 Premises only (the “15273 Renewal Term”) for one (1) five (5)-year term upon prior written notice (“Tenant’s Election Notice”) to Landlord given not sooner than nine (9) months nor later than six (6)
months prior to the 15273 Premises Expiration Date; provided that at the time Tenant gives such notice to Landlord and for the remainder of the 15273 Premises Term (i) the Lease has not been assigned and Tenant (or its corporate successor) continues
to occupy at least eighty percent (80%) of the 15273 Premises and (ii) Tenant is not in default under the Lease beyond any applicable cure period. During the 15273 Renewal Term, the provisions of the Lease, as it may be amended in writing prior to
the date of the commencement of the 15273 Renewal Term, shall continue in full force and effect except that Tenant shall occupy the 15273 Premises in its then “AS IS” condition and there shall be no abatement of rent, nor shall there be
credit or allowances given to Tenant for improvements to the 15273 Premises, and the Base Rent will be the then fair market rent determined as provided herein. On request, Landlord shall give Tenant the rates it is quoting to prospective tenants for
new leases of comparable space in the Complex for a comparable term (as confirmed by written statement to Tenant by a representative of Landlord). It is understood and agreed that Tenant’s submittal of Tenant’s Election Notice shall bind
Tenant to a five (5)-year extension of the Lease with respect to the 15273 Premises. At Landlord’s request, the parties shall promptly memorialize the Base Rent for the 15273 Renewal Term in a writing to be prepared by Landlord. 
  
 The “fair market rent” shall be based on the rental amounts
that tenants are paying in then-current transactions between landlords and non-affiliated parties for new or renewal, non-expansion (unless the expansion is pursuant to a comparable definition of fair rent), and non-equity tenants, for comparable
space (in size and height with 60% office and 40% warehouse space), for a comparable use for a comparable period of time within the City of Irvine (Irvine Spectrum submarket), California, as of the 15273 Premises Expiration Date (“Comparable
Transactions”). The reference to “60% office and 40% warehouse space” in the foregoing sentence shall mean that fair market rent shall be determined on the basis of the 15273 Premises being built out as 60% office and 40%
warehouse space, regardless of the manner in which Tenant is using or has built out the 15273 Premises. In any determination of Comparable Transactions, appropriate consideration shall be given to the annual rental rates per square foot (e.g.,
whether increases in additional rent are determined on a net or gross basis), parking rights and obligations, signage rights, abatement provisions reflecting free rent and/or no rent during the period of construction or subsequent to the
commencement date as to the space in question, brokerage commissions, if any, which would be payable by Landlord in similar transactions, length of lease term, size and location of premises being leased, building standard work letter and/or tenant
improvement allowances, if any, the condition of the base building and the landlord’s responsibility with respect thereto, the value, if any, of the existing tenant improvements (with such value being judged with respect to the utility of such
existing tenant improvements to a general business tenant and not to a particular tenant) and other generally applicable conditions of tenancy for such Comparable Transactions. 
  
 If by the date thirty (30) days following delivery of Tenant’s Election Notice, Landlord and Tenant have not agreed in
writing as to the amount of the Base Rent for the 15273 Renewal Term, the parties shall determine the fair market rent in accordance with the following procedure. Landlord and Tenant shall each appoint one real estate appraiser, and the two so
appointed shall select a third. Said real estate appraisers shall each be licensed in the State of California, specializing in the field of 

 
commercial real estate in the City of Irvine, California, having no less than ten (10) years experience in such field, unaffiliated with either Landlord or
Tenant, and recognized as ethical and reputable within their field. Landlord and Tenant agree to make their appointments promptly within ten (10) days after expiration of the thirty (30) day negotiation period, or sooner if mutually agreed upon. The
two appraisers selected by Landlord and Tenant shall promptly select a third appraiser within fifteen (15) days after they both have been appointed, and each appraiser, within thirty (30) days after the third appraiser is selected, shall submit his
or her determination of the then projected fair market rent. The Base Rent shall be the mean of the two closest rental determinations. 

  
 EXHIBIT J-1

  
 Form of SNDA 
  
 Prudential Loan No. 6103765 
  
 SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT 
  
 THIS AGREEMENT (“Agreement”) made as of the
             day of                     , 2005, between THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA (together with its successors or assigns in interest, collectively “Lender”) and ISTA PHARMACEUTICALS, INC., a Delaware corporation (“Tenant”). 
  
 RECITALS: 
  
 A. Lender is the owner and the holder of a loan evidenced by a promissory note (the “Note”) dated January
27, 2000 in the face amount of $7,500,000.00. The Note is secured by a Deed of Trust, Security Agreement, Fixture Filing and Financing Statement (the “Mortgage”) dated the same date as said Note, and recorded on January 27, 2000 as
Document No. 20000047965 in the Real Property Records of Orange County, California, covering the real property described therein (the “Mortgaged Premises”). 
  
 B. Tenant is the tenant under that certain Lease Agreement dated September 13, 1996 (as amended, the
“Lease”), between Tenant and ALTON PLAZA PROPERTY, INC., a Delaware corporation as landlord (said landlord and its successors and assigns under the Lease hereinafter called “Landlord”), covering all or part of the
Mortgaged Premises as set forth under the Lease (hereinafter called the “Demised Premises”). 
  
 C. Tenant and Lender desire to confirm their understanding with respect to the Lease and the Mortgage. 
  
 THEREFORE, in consideration of the mutual covenants and agreements herein
contained and other good valuable consideration, the receipt and sufficiency of which are hereby acknowledged by all parties, Lender and Tenant agree as follows: 
  
 1. Subordination. The Lease is now, and will at all times and for all purposes be, subject and subordinate, in every
respect, to the Mortgage, with the provisions of the Mortgage and this Agreement controlling over the provisions of the Lease. The Lease is subordinate and subject, in each and every respect, to any and all increases, renewals, modifications,
extensions, substitutions, replacements and/or consolidations of the Mortgage, (collectively a “Modification”), and all other loan documents securing the Note, provided that any and all Modifications shall nevertheless be subject to
the terms of this Agreement. 
  
 2. Non-Disturbance. So
long as Tenant complies with all of the terms, provisions, agreements, covenants, and obligations set forth in the Lease after the expiration of any applicable cure period, Tenant’s possession of the Demised Premises under said Lease shall not
be disturbed or interfered with by Lender. 

 3. Attornment. If Lender or any other party succeeds to the interest of Landlord under the Lease
in any manner, including but not limited to foreclosure, exercise of any power of sale, succession by deed in lieu or other conveyance (a “Succession”), Tenant will attorn to and be bound to such party (whether Lender or another
party) upon such Succession and will recognize Lender or such other party as the landlord under the Lease. Such attornment is effective and self-operative without the execution of any further instrument. Tenant, upon request, will sign and deliver
any instruments reasonably requested to evidence such attornment. Tenant waives the provisions of any statute or rule of law, now or hereafter in effect, which may give or purport to give Tenant any right or election to terminate or otherwise
adversely affect the Lease and the obligations of Tenant thereunder as a result of any such foreclosure or trustee’s sale. 
  
 4. Limitation On Lender’s Liability. Upon any Succession, Lender shall not be (a) liable for any act or omission of the Landlord under said
Lease, (b) subject to any offsets or defenses which Tenant may have against the Landlord arising or occurring due to an event prior to the Succession, (c) bound by any rent or additional rent which Tenant may have paid to Landlord for more than the
current month, (d) bound by any amendment or modification of the Lease made without Lender’s prior written consent, (e) liable for any security deposit paid by Tenant to Landlord unless such deposit is delivered to Lender, (f) liable for or
obligated to pay for repairs, replacements, damages or allowances not made, performed or paid by the Landlord if such performance or payment was due prior to the Succession, or (g) liable for the payment of any leasing commissions, the triggering
event for which arose or occurred prior to the Succession. Any reference to Landlord includes all prior landlords under the Lease. Neither Lender nor any party taking under a Succession shall be liable for the performance of the obligations of the
Landlord under the Lease, except for those obligations which arise during the period of Lender’s or such entity’s or person’s ownership of the Mortgaged Premises. 
  
 5. Tenant’s Warranty. Tenant warrants to Lender, as of the date hereof, that (a) attached is a true, correct and
complete copy of the Lease, (b) there are no known defaults on the part of Landlord, (c) the Lease is a complete statement of the agreement of the parties with respect to the leasing of the Demised Premises, (d) the Lease is validly executed by
Tenant and in full force and effect. Tenant acknowledges and warrants to Lender that it has not subordinated the Lease or any of its rights under the Lease to any lien or mortgage other than the Mortgage. 
  
 6. Lender Cure Rights. Thirty (30) days before exercising any of its
rights and remedies under the Lease for a landlord default, Tenant will send written notice to Lender at Suite 4900E, 2200 Ross Avenue, Dallas, Texas 75201, referencing Loan Number 6103765 by certified mail, return receipt requested, of the
occurrence of any default by Landlord and will specify with reasonable clarity the events constituting such default. If the referenced default would entitle Tenant to cancel the Lease or abate the rent payable thereunder, no such cancellation or
abatement of rent will be effective unless Lender receives notice in the form and manner required by this Paragraph 6 and fails (a) within thirty (30) days of the date of the receipt of such notice by Lender to cure or cause to be cured any default
which can be cured by the payment of money and (b) to cure or caused to be cured within sixty (60) days of the receipt of such notice any default which cannot be cured by the payment of money (“Non-Monetary Default”); provided,
however, that if the Non-Monetary Default is not capable of cure within such sixty-day period, no cancellation or abatement by Tenant will be effective as to Lender unless Lender fails within the original sixty (60) day period to commence and
diligently 

 
prosecute the cure of such default to completion. Tenant will accept cure of any Landlord default by Lender. 
  
 7. Rent Payment. Immediately upon written notice to Tenant (a) that
Lender is exercising its rights under the Mortgage or any other loan documents acting to secure the Note following a default under the Loan, or (b) of Lender’s succeeding to the Landlord’s interest under the Lease, Tenant agrees to pay all
rents due under the Lease directly to Lender (in accordance with the Lease). 
  
 8. Complete Agreement. This Agreement supersedes, as between the parties hereto, all of the terms and provisions of the Lease which are inconsistent herewith. 
  
 9. No Oral Modification/Binding Effect. This Agreement may not be
modified orally or in any manner other than by an agreement in writing signed by the parties hereto or their respective successors in interest. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their successors
and assigns. 
  
 10. Laws. This Agreement shall be
construed in accordance with the laws of the State where the Mortgaged Premises are located. 
  
 11. Automatic Amendment of Lease. Upon a Succession, the Lease is automatically amended as follows: 
  
 a. Hazardous Materials. All representations, warranties, indemnities or hold harmless provisions in favor of Tenant from Landlord
dealing with the presence, use, transportation, disposal, contamination, exposure to or in any way arising out of hazardous or toxic materials, chemicals or wastes (“Hazardous Materials”) are deleted as to Lender. Lender, however,
as Landlord, covenants and agrees to (a) comply with all laws governing Hazardous Materials (“Hazardous Materials Laws”), (b) store, use and dispose of all Hazardous Materials at the Mortgaged Premises in accordance with all
applicable Hazardous Materials Laws, and (c) remove, remediate and/or clean up, as applicable, in accordance with all applicable Hazardous Materials Laws, all Hazardous Materials at the Mortgaged Premises (to the extent not caused by Tenant or its
employees, contractors or agents) impairing Tenant’s use or access to the Demised Premises. 
  
 b. Insurance. Tenant will at all times carry comprehensive general liability coverage for its activities and operations at the
Demised Premises, listing Lender and Landlord as additional insureds, in such coverage amounts as are required by the Lease but in no event less than One Million Dollars. Lender will have no liability to Tenant for any indemnity or hold harmless
provision under the Lease where Lender is otherwise covered by Tenant’s comprehensive general liability coverage(s) as carried by Tenant or which Tenant is required to carry under the Lease. All insurance required to be carried by Landlord
under the Lease may be effected by Lender by self-insurance or by a policy or policies of blanket insurance covering additional items or locations or assureds and with such deductibles as Lender may from time to time determine. Tenant has no rights
in any policy or policies maintained by Lender. 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed the day and year
first above written. 
  

									
	 	 	 	 	 LENDER:

			
	 	 	 	 	 THE PRUDENTIAL INSURANCE COMPANY
 OF AMERICA

	 ATTEST:
	 	 	 	 
					
	 	 	 	 	 	 	 By:
	 	 
	 Assistant Secretary
	 	 	 	 	 	 Vice President

				
	 	 	 	 	 	 	 (Corporate Seal)

			
	 	 	 	 	 TENANT:

			
	 	 	 	 	 ISTA PHARMACEUTICALS, INC.,

	 ATTEST:
	 	 	 	 
					
	 	 	 	 	 	 	 By:
	 	 
	 Secretary
	 	 	 	 	 	 President

				
	 	 	 	 	 	 	 (Corporate Seal)Employment Agreement

 Exhibit 10.1 
  
 EMPLOYMENT AND NON-COMPETITION AGREEMENT 
  
 This Employment and Non-Competition Agreement (this “Agreement”), is dated as of the 9th day of September, 2005 (the “Signing Date”) and is entered into by and between Super Vision International, Inc.,
a Delaware corporation (the “Employer”) and Michael A. Bauer (the “Employee”). 
  
 W I T N E S S E T H : 
  
 WHEREAS, Employee desires to continue his employment with the Employer, and the Employer desires to continue to employ Employee upon the terms and
conditions hereinafter set forth. 
  
 NOW, THEREFORE, in
consideration of the premises and other good and valuable consideration, receipt and sufficiency of which is hereby acknowledged, the Employee and the Employer agree as follows: 
  
 Section 1. Employment of Employee 
  
 (a) Term. Employee’s employment hereunder will commence on January 1, 2006 (the “Effective Date”) and will expire on December
31, 2007 (the “Initial Term”). Employment of Employee will be extended automatically for successive one-year periods thereafter (each a “Renewal Term”; and together with the Initial Term, collectively, the “Term”),
unless either party gives at least ninety (90) days’ written notice to the other party of its desire to terminate this Agreement prior to the end of the Initial Term or any Renewal Term, as the case may be (“Non-Renewal Notice”).
During such 90-day notice period, the Employee agrees to continue to provide services under this Agreement. The Employee’s employment hereunder may be terminated sooner than the expiration of the Term pursuant to the terms and conditions
described below in Section 2. If either party provides written notice to the other party of its desire to terminate this Agreement at least ninety (90) days prior to the expiration of the Initial Term or any Renewal Term, upon the expiration of the
Initial Term or any Renewal Term, as applicable, this Agreement shall terminate. The provisions of this Agreement that may be reasonably interpreted as surviving termination of this Agreement, including without limitation Sections 2 and 3, shall
continue in effect after termination of this Agreement. The date on which Employee ceases to be employed by Employer, regardless of the reason therefore is referred to in this Agreement as the “Date of Termination.” 
  
 (b) Duties and Responsibilities. From the Signing Date
until December 31, 2005, Employee will continue to serve as Vice President of Sales and Marketing of Employer. Effective January 1, 2006, Employee shall serve as President and Chief Executive Officer of Employer, or in such other positions as
assigned by Employer with Employee’s consent from time to time. Employee agrees to apply his best efforts, entire productive time, attention, and energies to the business of Employer and shall assume and perform such reasonable responsibilities
and duties as may be assigned to him from time to time by the Board of Directors of Employer (the “Board”). To the extent that the Employer shall have any parent, subsidiaries, affiliated corporations, partnerships, or joint ventures
(collectively “Related Entities”), Employee shall perform such duties to promote these entities and their respective interests to the same extent as the interests of the Employer and without additional 

 
compensation. At all times during the Term, Employee agrees to abide by any employee handbook, policy, or practice that the Employer has established with
respect to its employees. Notwithstanding the foregoing, Employee shall be permitted to engage in charitable and civic activities and manage his personal passive investments, provided that such activities (individually or collectively) do not
materially interfere with the performance of his duties or responsibilities under this Agreement. 
  
 (c) Location; Relocation. The location at which Employee shall perform services for Employer shall be 8210 Presidents Drive, Orlando, Florida, or such other principal office of Employer as
shall be established by the Board from time to time. Employer may require Employee to travel extensively to other locations on Employer’s business, but Employee’s primary residence shall be in the Orlando, Florida metropolitan area.
Employee and his family shall relocate to the Orlando, Florida metropolitan area before January 1, 2006. Employer shall reimburse Employee for the costs of moving to the Orlando, Florida metropolitan area by paying Employee a $25,000 non-accountable
moving allowance (the “Moving Allowance”). Employer shall pay Employee $15,000 of the Moving Allowance on the Signing Date and the balance of $10,000 after relocation of Employee and his family to the Orlando, Florida metropolitan area is
completed. 
  
 (d) Compensation. During the
Term, as full compensation for his services hereunder and in consideration for the Employee’s covenants contained in this Agreement, the Employer shall pay the Employee a base salary at the per annum rate of $180,000 payable in accordance with
the customary payroll practices of the Employer (“Base Salary”). In addition, during the Term, Employee shall be eligible to receive performance bonus compensation in accordance with the terms and conditions set forth on Schedule
1 attached hereto. After the Initial Term, performance bonus compensation, if any, shall be based upon performance criteria to be determined by the Board or the compensation committee of the Board (the “Compensation Committee”)
after consultation with Employee. Based on Employee’s annual performance review by the Compensation Committee, Employee may be eligible for future salary increases depending on various factors, such as the Employer’s performance and
Employee’s satisfactory job performance, provided that in no event may Employee’s annual salary adjustment be less than 3% per annum for the Initial Term. 
  
 (e) Stock Options. On the Signing Date, Employee will be granted a stock option to purchase 40,000 shares of
Employer’s Class A common stock at an exercise price equal to the fair market value of such shares on the date of grant as determined by the Compensation Committee. Such option shall fully vest as to all 40,000 of the shares subject to the
option on the Signing Date. Subject in all instances to Employee’s continued employment with Employer, on January 1, 2007, Employer shall grant Employee an option to purchase 75,000 shares of Employer’s Class A common stock at an exercise
price equal to the fair market value of such shares on the Signing Date. Provided that the revenue and net income before taxes milestones set forth in Employer’s 2006 Board approved operating plan are achieved this option shall vest as to
25,000 shares subject to such option on January 15, 2007 and 50,000 shares on March 31, 2007, respectively. Subject in all instances to Employee’s continued employment with Employer, on January 1, 2008, Employer shall grant Employee an option
to purchase 75,000 shares of Employer’s Class A common stock at an exercise price equal to the fair market value of such shares on the Signing Date. Provided that the revenue and net income before taxes milestones set forth in Employer’s
2007 Board approved operating plan are achieved this option shall vest as to 25,000 shares subject to such option on January 15, 2008 and 50,000 shares on March 31, 2008, respectively. If a revenue and net income before taxes milestone is not

  

 Page 2 of 13 

 
achieved, but Employer achieves at least 25% of such milestone, than an option shall vest with respect to a corresponding pro rata percentage of shares on
the relevant vesting date. For example, if Employer achieves 50% of the targeted net income before taxes milestone for 2006, 25,000, or 50%, of the shares subject to the applicable option shall vest on March 31, 2007. All such options shall be
subject to the terms and conditions of Employer’s stock option plan pursuant to which the options are granted and shall be conditioned upon Employee’s execution of a stock option agreement with Employer in the form specified by the
Compensation Committee. 
  
 For purposes of this Agreement, net income before
taxes shall be determined without regard to any gains, losses, profits, charges or expenses realized by the Company from any legal proceeding to which the Company is a party that is pending on the Effective Date including, without limitation, awards
to Employer of attorneys’ fees and costs incurred by Employer in such proceedings and any legal fees or costs of any party to such proceedings, other than Employer, that are paid by Employer. 
  
 (f) Expenses. Employer agrees to pay or reimburse Employee for
all reasonable vouchered business expenses incurred during his employment which have been submitted in accordance with any expense reimbursement policy or practice of the Employer. 
  
 (g) Benefits. Employer will provide to the Employee and, to the extent eligible, his dependents, any benefit, including
without limitation, medical insurance program reimbursement, 401k savings plan, etc., which are provided by Employer generally to its employees, subject to the provisions of the various benefit plans, programs, or policies in effect from time to
time. Employer reserves the right to change or eliminate these benefits at any time. 
  
 (h) Vacation; Personal Days. During the Term, Employee shall be entitled to fifteen (15) days paid vacation annually, three (3) personal/sick days and as many holidays as are in accordance with Employer’s
policy then in effect generally for its employees. 
  
 (i) Life
Insurance. Employee agrees that Employer shall have the right to obtain life insurance on Employee’s life, at Employer’s sole expense and with Employer as the sole beneficiary thereof. Employee shall (i) cooperate
fully with Employer in obtaining such life insurance, (ii) sign any necessary consents, applications and other related forms or documents, and (iii) take any required medical examinations. 
  
 (j) Car Allowance. During the Term, Employer will provide
Employee with a monthly car allowance of $1,000 to cover the costs of insuring and maintaining an automobile for use in the business of Employer. 
  
 Section 2. Termination of Employment 
  
 (a) Termination by the Employer. The Employer may terminate the employment of Employee at any time, with or without cause, upon
ninety (90) days prior written notice. If the Employee’s employment is terminated by Employer for any reason other than Disability or Cause (as such terms are defined below), including the termination of Employee’s employment upon
expiration of the Initial Term or any Renewal Term pursuant to a Non-Renewal Notice delivered by Employer to Employee, Employee shall receive (i) twelve months’ Base Salary 

  

 Page 3 of 13 

 
payable in accordance with the customary payroll practices of Employer over the twelve month period immediately following the Date of Termination, (ii) any
unpaid reimbursable expenses outstanding as of the Date of Termination and (iii) payment for accrued and unused benefits as of the Date of Termination such as vacation. In the event of a termination of Employee’s employment by Employer for
Cause (as defined below), Employee shall receive unpaid Base Salary through, and any unpaid reimbursable expenses outstanding as of, the Date of Termination and payment for accrued and unused benefits as of the Date of Termination such as vacation.
If Employee’s employment with Employer is terminated by Employer for any reason, or no reason, all of the restrictions contained in Section 3 shall survive the expiration or termination of Employee’s employment in accordance with the terms
set forth therein. Except as set forth in this paragraph, if Employee’s employment with Employer is terminated by the Employer, following the Date of Termination the Employer shall have no further obligations under this Agreement. 

 
 “Cause” shall be limited to the following: (i) Employee’s refusal to
perform his duties in a satisfactory manner as contemplated by this Agreement; (ii) dishonesty or other acts by Employee that adversely affect Employer; (iii) a violation of Employer’s policies or practices which justifies immediate
termination; (iv) arrest or conviction of a felony or of any crime involving moral turpitude, fraud or misrepresentation; (v) the commission by Employee of any act which could reasonably be expected to injure the reputation, business, or business
relationships of Employer or any Related Entities; or (vi) any material breach of this Agreement. 
  
 (b) Termination by Employee. Employee agrees to provide Employer with at least ninety (90) days’ prior written notice of his intent to terminate his employment (“Termination
Notice Period”). Failure to provide such notice terminates Employee’s entitlement to payment for accrued, unused benefits, such as vacation. In the event of a termination of Employee’s employment by Employee, including the termination
of Employee’s employment upon expiration of the Initial Term or any Renewal Term pursuant to a Non-Renewal Notice delivered by Employee to Employer, Employee shall receive unpaid Base Salary through, and any unpaid reimbursable expenses
outstanding as of, the Date of Termination and payment for accrued and unused benefits as of the date of Termination such as vacation. If Employee’s employment with Employer is terminated by Employee for any reason, or no reason, all of the
restrictions contained in Section 3 shall survive the expiration or termination of Employee’s employment in accordance with the terms set forth therein. Employer reserves the right to terminate Employee before the end of the Termination Notice
Period provided that Employee shall receive the Base Salary that he would have received from the date of the last payroll payment to the end of the Termination Notice Period and any unpaid reimbursable expenses outstanding as of the Date of
Termination and payment for accrued and unused benefits as of the Date of Termination such as vacation. During the Termination Notice Period, the Employee agrees to provide services under this Agreement using his best efforts. Except as set forth in
this paragraph, if Employee’s employment with Employer is terminated by Employee, following the Date of Termination, the Employer shall have no further obligations under this Agreement. 
  
 (c) Termination Due to Death or Disability. If Employee’s
employment with Employer terminates by reason of his death or Disability (as defined below), Employee, or his estate as applicable, shall receive unpaid Base Salary through, and any unpaid reimbursable expenses outstanding as of, the Date of
Termination and payment for accrued and unused benefits as of the Date of Termination such as vacation. For purposes hereof, the term “Disability” means the Employee’s inability, due to a medical condition, physical disability or
mental illness, to perform his regular duties for at least 90 days in any 180 consecutive day period, without any 

  

 Page 4 of 13 

 
reasonable prospect of a full recovery within an additional 30 days that will allow Employee to resume his regular full-time duties. In the case of
Disability, the Date of Termination shall be the date the Board determines that Employee’s employment has terminated due to Disability. If Employee’s employment with Employer terminates as a result of his Disability, all of the
restrictions contained in Section 3 shall survive the expiration or termination of Employee’s employment in accordance with the terms set forth therein. Except as set forth in the paragraph, If Employee’s employment with Employer
terminates by reason of his death or Disability, following the Date of Termination, the Employer shall have no further obligations under this Agreement. 
  
 Section 3. Non-Competition; Protection of Confidential Information; Etc. 
  
 (a) Rationale for Restrictions. Employee agrees that his services hereunder are of a special, unique,
extraordinary and intellectual character, and his position with the Employer places him in a position of confidence and trust with the customers, suppliers and employees of the Employer and/or Related Entities. Employee also acknowledges that the
Employer designs, manufactures, markets and sells LED and fiber optic lighting products used in applications in the commercial, architectural, signage, swimming pool and OEM markets throughout the world and that the Employer competes with many
entities. Employee further acknowledges that the rendering of services under this Agreement necessarily requires the disclosure to Employee of Confidential Information (as defined below) of the Employer and/or Related Entities. Employee and the
Employer agree that in the course of employment hereunder, Employee has and will continue to develop a personal relationship with the Employer’s customers, and a knowledge of these customers’ affairs and requirements which may constitute
the Employer’s primary and only contact with such customers. Employee acknowledges that the Employer’s relationships with its established customers may therefore be placed in Employee’s hands in confidence and trust. Employee
consequently agrees that it is reasonable and necessary for the protection of the goodwill and legitimate business interests of the Employer and/or the Related Entities that Employee make the covenants contained herein, that the covenants are a
material inducement for the Employer to employ or continue to employ Employee and to enter into this Agreement, and that the covenants are given as an integral part of and incident to this Agreement. 
  
 (b) Non-Competition In Related Business. While employed by
Employer and for a period of two (2) years thereafter, Employee shall not, directly or indirectly, whether or not for consideration, enter into the employment of, render any services to, engage, manage, operate, join, or own, lend money or otherwise
offer other assistance to or participate in or be connected with, as an officer, director, employee, principal, agent, creditor, proprietor, representative, stockholder, partner, associate, consultant or otherwise, any person or entity that competes
with Employer in the fiber optic and/or LED lighting business. 
  
 (c)(i)
Solicitation of Employees. While employed by the Employer and for a period of one (1) year thereafter, Employee shall not, whether for his own account or for the account of any person or entity hire, attempt to hire,
solicit, attempt to solicit, endeavor to entice away from the Employer or any of the Related Entities, or otherwise interfere with any relationship of the Employer or any of the Related Entities with, any person (including, but not limited to, any
independent contractor or representative) who is, or during the twelve (12) month period prior to the Date of Termination, was employed by or otherwise engaged to perform services for the Employer or any such Related Entities. 
  

 Page 5 of 13 

 (c)(ii) Solicitation of Customers. While employed by the Employer and for a period of two (2)
years thereafter, Employee shall not, whether for his own account or for the account of any person or entity solicit, attempt to solicit, endeavor to entice away from the Employer or any of the Related Entities, hire, deal with, attempt to attract
business from, accept business from, or otherwise interfere with any relationship of the Employer or any Related Entities with any person or entity who is or was a customer or client of the Employer or any Related Entities during the twenty four
(24) month period prior to the Date of Termination. 
  
 (d) Use and
Disclosure of Confidential Information. Employee recognizes and acknowledges that he has access to Confidential Information (as defined below). Accordingly, Employee agrees that he will not, during and for a period of four (4) years
after his employment, except as required in the course of his employment, use or disclose any Confidential Information to any individual or entity. Employee further agrees that he will not permit any person or entity to examine or make copies of any
documents which contain or are derived from Confidential Information, without the prior written permission of Employer. The provisions of this subparagraph shall not apply to information which is generally known to the public (except by reason of
Employee’s breach of his obligations hereunder) and information which Employee is required to disclose by order of a court of competent jurisdiction (but only to the extent specifically ordered by such court and, when reasonably possible, after
Employee has given Employer or Related Entities prior notice of such intended disclosure so that it or they have the opportunity to seek a protective order if deemed appropriate). Employee also will not disclose to the Employer or Related Entities
any trade secrets belonging to a former employer. 
  
 As used in this Agreement,
“Confidential Information” shall mean studies, plans, reports, surveys, analyses, sketches, drawings, specifications, notes, records, memoranda, computer-generated data, or documents, and all other nonpublic information relating to the
business activities of the Employer and/or the Related Entities, or any other party with whom the Company agrees to hold information of such party in confidence, including, without limitation, all methods, processes, formulas, techniques, equipment,
research data, experiments, marketing and sales information, personnel data, customer lists, employee lists, supplier lists, financial data, trade secrets, and the like which presently or, in the future, are in the possession of Employer and/or
Related Entities. Said Confidential Information may be in either human or computer readable form, including, but not limited to, software, source code, hex code, or any other form. 
  
 (e) Rights to Intellectual Property. While employed by the Employer, Employee will disclose to the Employer any
ideas, inventions, works of authorship, or business plans (“Intellectual Property”) developed by him which relate directly or indirectly to the business or a similar business of Employer or Related Entities, including without limitation,
any process, operation, product or improvement which may be patentable or copyrightable. Employee agrees that the Intellectual Property is or will be the property of the Employer and that he will, at the Employer’s request and cost, do whatever
is necessary to obtain the rights thereto, by patent, copyright or otherwise, for the Employer. Employee agrees that all works of authorship protected by copyright law created during Employee’s employment with Employer shall be deemed works
“made for hire” under the Copyright Act. If, for any reason, the work is not deemed a “work made for hire,” Employee otherwise hereby assigns to Employer all rights of copyright in and to any such works. Employee further agrees
that, whether or not he is in the employ of Employer, he will cooperate in good faith to the extent and in the manner requested by Employer in the prosecution or defense of any patent or copyright claims or any litigation or other proceedings
involving any Intellectual Property. The Employer will pay for all expenses associated with Employee’s compliance with this provision. 
  

 Page 6 of 13 

 (f) Scope of Covenants. If any of the covenants contained in Section 3 are held to be invalid
or unenforceable due to the unreasonableness of the time, geographic area, or range of activities covered by such covenants, such covenants shall nevertheless be enforced to the maximum extent permitted by law and effective for such period of time,
over such geographical area, or for such range of activities as may be determined to be reasonable by a court of competent jurisdiction and the parties hereby consent and agree that the scope of such covenants may be judicially modified,
accordingly, in any proceeding brought to enforce such covenants. 
  
 (g)
Remedies for Breach of the Agreement. Employee consents and agrees that if he violates any covenants contained in this Agreement, Employer and/or Related Entities would sustain irreparable harm and, therefore, in addition to
any other remedies which may be available to it, Employer and/or Related Entities shall be entitled to an injunction restraining Employee from committing or continuing any such violation of this Agreement. Nothing in this Agreement shall be
construed as prohibiting Employer and/or Related Entities from pursuing any other remedy or remedies including, without limitation, recovery of damages. Employee acknowledges that Related Entities have rights under this Agreement and that they may
enforce these rights as third party beneficiaries. 
  
 (h)
Survival. The provisions of Section 3 shall survive the termination of this Agreement or Employee’s employment irrespective of the reason for such termination. The provisions of Section 3 shall survive in accordance
with its terms after this Agreement’s expiration or termination of Employee’s employment even if Employee continues to work for the Employer or any Related Entity without renewing this Agreement. 
  
 These restrictive covenants are intended to benefit the Employer and any parent,
subsidiaries, affiliated corporations, partnerships, joint ventures, or other Related Entities. Accordingly, these restrictive covenants may be enforced by the Employer and any parent, subsidiaries, affiliated corporations, partnerships, joint
ventures, or other Related Entities. 
  
 These restrictive covenants shall be
construed as agreements independent of any other provision in this Agreement, and the existence of any claim or cause of action of the Employee against the Employer, whether predicated upon this Agreement or otherwise, shall not constitute a defense
to the enforcement by the Employer of any restrictive covenant. The Employer has fully performed all obligations entitling it to the restrictive covenants, and the restrictive covenants therefore are not executory or otherwise subject to rejection
under the Bankruptcy Code. 
  
 These restrictive covenants may be assigned without
the knowledge or consent of the Employee, and they may be enforced by any assignee of, or successor to, the rights set forth in this Agreement. 
  
 Section 4. Anti-Disparagement 
  
 Employee covenants and agrees, both during and after the termination of employment, that he shall not make any comments which could be construed as negative concerning
Employer or any Related Entity to any individual or entity, including but not limited to, clients, customers, 

  

 Page 7 of 13 

 
employees, or financial or credit institutions. Employer covenants and agrees, both during and after the termination of employment, that it shall not make
any comments which could be construed as negative concerning Employee to any individual or entity, including but not limited to, clients, customers, employees, or financial or credit institutions. 
  
 Section 5. Employee’s Purchase of Stock During Employment 
  
 Notwithstanding the foregoing, and while employed by the Employer, and for a period of two
(2) years thereafter, Employee may acquire, solely as an investment, shares of capital stock or other equity securities of any company which is traded on any national securities exchange or regularly quoted in the over-the-counter market, so long as
Employee does not control, acquire a controlling interest in or become a member of a group which exercises direct or indirect control of, more than one percent of any class of capital stock of such corporation. Employee agrees to inform the
Employer’s legal counsel prior to the acquisition of any stock of Employer or any Related Entity. 
  
 Section 6. Return of Employer Property On Termination 
  
 Employee agrees to promptly return the Employer’s property to the Employer’s headquarters upon termination of his employment with Employer. Failure to comply with this provision will result in the immediate
suspension of any payment then due and owing to the Employee under this Agreement until such property is returned. The Employer reserves the right to take appropriate legal action against the Employee in the event of a breach of this provision.

  
 Section 7. Verification of Compliance 
  
 Upon termination of employment, Employee shall, at the request of Employer and for no
additional consideration, verify in writing and under oath, in the form attached hereto as Exhibit A, his compliance with the provisions of this Agreement relating to Intellectual Property and Confidential Information. This provision shall
not give rise to any claim by Employee for severance pay or other payments upon Employee’s termination of employment. 
  
 Section 8. Miscellaneous Provisions 
  
 (a) Integration, Waiver and Severability. This Agreement sets forth the entire agreement between the parties with respect to the matters
covered herein and supersedes all prior agreements, whether oral or written. No waiver or modification of this Agreement or of any part contained herein shall be valid unless in writing and duly executed by Employee and approved by the Board. The
waiver by Employer of any breach of a provision of this Agreement shall not be construed as a waiver of any succeeding breach or a waiver of any breach of any other provision. No evidence of any waiver or modification shall be offered or received in
evidence in any proceeding or litigation between the parties hereto arising out of or affecting this Agreement, or the rights or obligations of the parties hereunder, unless such waiver or modification is in writing, duly executed as aforesaid. The
failure of either party at any time to require performance by the other party of any provision hereunder shall in no way affect the right of that party thereafter to enforce the same, or to enforce any of the other provisions in this Agreement; nor
shall the waiver by either party of the breach of any provision hereof be taken or held to be a waiver of any subsequent breach of such provision or as a waiver of the provision itself. Whenever possible each provision, term and covenant of this
Agreement will 

  

 Page 8 of 13 

 
be interpreted in a manner to be effective and valid but if any provision, term or covenant of this Agreement is held to be prohibited or invalid by a court
of competent jurisdiction, then such provision, term or covenant will be ineffective only to the extent of such prohibition or invalidity, without invalidating or affecting in any manner whatsoever the remainder of such provision, term or covenant
or the remaining provisions, terms or covenants of this Agreement. 
  
 (b)
Benefit and Assignability. This Agreement shall bind the Employee, his heirs and successors, and the Employer, its successors and assigns. This Agreement requires the personal services of the Employee and cannot be assigned
by the Employee. The Employee agrees not to delegate his obligations or duties hereunder or any portion thereof. The Employer may, without recourse, assign all its rights and obligations to any entity that acquires or succeeds to the business of the
Employer by merger, sale of assets, consolidation, operation of law, or otherwise. The rights and obligations of the Employer hereunder shall be binding upon and run in favor of the successors and assigns of the Employer. 
  
 (c) Notice. Any notice required or permitted to be given under
this Agreement shall be sufficient if in writing, and if sent by certified mail, return receipt requested, to his residence set forth on the signature page hereof, unless otherwise changed by Employee through written notice to Employer, in the case
of the Employee, or to its principal office in the case of the Employer set forth on the signature page hereof, unless otherwise changed by Employer by providing written notice to the Employee. 
  
 (d) Section Headings. The headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 (e) Prevailing Party. The prevailing party to an action to enforce or defend this Agreement is entitled to attorney’s fees and reasonable
costs incurred in connection therewith, including, but not limited to, those incurred at the pre-litigation, pre-trial, trial, and appellate levels. 
  
 (f) References. Whenever the masculine pronoun is used, it includes the feminine pronoun, and the singular includes the plural, and vice
versa, where the context requires. 
  
 (g) Counterparts;
Facsimile. This Agreement may be executed in one or more counter-parts, each of which shall be deemed an original, but all of which taken together shall constitute one of the same instrument. A facsimile signature of this Agreement
shall be deemed an original. 
  
 (h) Applicable Law; Jurisdiction;
Venue; Waiver of Jury Trial. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA, WHETHER SUBSTANTIVE OR PROCEDURAL. THE CONVENIENT AND EXCLUSIVE JURISDICTIONS AND VENUE FOR ANY LEGAL ACTION ARISING OUT
OF THIS AGREEMENT SHALL BE IN THE STATE AND FEDERAL COURTS OF COMPETENT JURISDICTION LOCATED IN ORANGE COUNTY OR THE MIDDLE DISTRICT OF FLORIDA. EACH OF THE PARTIES HERETO AGREES THAT IT SHALL SUBMIT TO, IS AND SHALL BE BOUND BY THE JURISDICTION OF
SUCH COURTS. EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING UNDER THIS AGREEMENT OR REGARDING THE EMPLOYMENT OF EMPLOYEE BY EMPLOYER DURING OR AFTER THE TERM OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL
INDUCEMENT TO EMPLOYER ENTERING INTO THIS AGREEMENT. 
  

 Page 9 of 13 

 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above
written. 
  

			
	 /s/ Michael A. Bauer

	MICHAEL A. BAUER
		
	Address:	 	8979 Harris Road
	 	 	Concord, North Carolina 28027
	
	SUPER VISION INTERNATIONAL, INC.
		
	By:	 	 /s/ Brett M. Kinstone

	Name:	 	Brett M. Kingstone
	Title:	 	President and Chief Executive Officer

  

			
	Address:	 	8210 Presidents Drive
	 	 	Orlando, Florida 32809

  

 Page 10 of 13 

 EXHIBIT A 
  
 My employment by Employer is terminated. I have read and understood my agreement with Employer dated
                        , 2005 (the “Agreement”), and particularly the provisions relating to Intellectual
Property and Confidential Information. I hereby swear, UNDER OATH, that: 
  
 1. I
have complied with all provisions of the Agreement, including those relating to Intellectual Property and Confidential Information. 
  
 2. I have fully disclosed all items of Intellectual Property to Employer. I have given Employer all documents and other materials referred to in the Agreement, or if I
have not done so, the withheld documents and materials are:
                                        
                . If I discover any documents and other materials covered by this Agreement in my possession in the future, I will immediately return them to the
Employer after discovery. 
  
 3. I understand that the misappropriation of
confidential information and documents may be considered a crime under the laws of the State of Florida. 
  

					
	
                         (Name)
	  	 
			
	STATE OF FLORIDA)	  	 	  	 
	 	  	)SS:	  	 
	COUNTY OF                     	  	)	  	 

  
 The foregoing instrument was
acknowledged before me this              day of
                        , 200_ by
                                        
                        . 
  
 Personally Known                      OR Produced
Identification                      
  
 Type of Identification Produced 
  
 Print or Stamp Name:  
 Notary Public, State of Florida at Large 
 Commission No.: 
 My Commission Expires: 
  

 Page 11 of 13 

 SCHEDULE 1 TO EMPLOYMENT AGREEMENT 
  

										
	 Compensation Plan
	  	Effective Date:	 	 	 	 	  	 	1/1 to 12/31/2006
				
	 President & CEO
	  	 	 	 	 	 	  	 	 
	 	  	Plan Update:	 	 	 	 	  	 	9/9/2005 Rev 2
				
	 Employee
	  	Mike Bauer	 	 	 	 	  	 	 
				
	 Income Package:
	  	 	 	 	 	 	  	 	Annualized Value
	 Base Salary:
	  	 	 	 	 	 	  	$	180,000
	 Additional: Car Allowance
	  	 	 	 	 	 	  	$	12,000
	 Target Bonus
	  	% of Base Comp: 49	%	 	 	 	  	$	190,000
	 Target Total Compensation
	  	 	 	 	 	 	  	$	382,000
				
	 Part 1: Earnings Achievement
	  	 	 	 	 	 	  	 	 
				
	 Total Bonus Objective:
	  	 	 	 	 	 	  	$	150,000
				
	 1a. Gross Margin Pay-out:
	  	25	%	 	$	37,500	  	 	 
	 Upon achieving target GM of Approved 2006 Operations Plan
	  	100	%	 	$	37,500	  	 	 
				
	 Upon achieving Target GM +.5%
	  	105	%	 	$	39,375	  	 	 
	 Upon achieving Target GM + 1%
	  	110	%	 	$	41,250	  	 	 
	 Upon achieving Target GM +1.5%
	  	120	%	 	$	45,000	  	 	 
	 (2007 Potential Bonus increases to $43,750)
	  	 	 	 	 	 	  	 	 
				
	 1b. Net Operating Profit
	  	75	%	 	$	112,500	  	 	 
				
	Based on achieving target Audited Net Profit of 2006 Op Plan, after approval by the Board	  	$TBD	 	 	 	 	  	 
 
 
 
 
 
 	Note: The operating
profit bonus will be
finally paid set as
the lesser of 10% of
the total net profit
or the percentage
shown in this
plan.
	 	  	80	%	 	$	90,000	  	 	 
	 	  	90	%	 	$	101,250	  	 	 
	 	  	100	%	 	$	112,500	  	 	 
	 	  	110	%	 	$	123,750	  	 	 
	 	  	120	%	 	$	135,000	  	 	 

  

 Page 12 of 13 

 SCHEDULE 1 TO EMPLOYMENT AGREEMENT 
 (Continued) 
  

									
	 	  	Part 2: Management Achievement	  	 	 	 	  	 
	 	  	Total Bonus Objective:	  	 	 	 	  	$40,000
	 	  	Paid out on the completion of the following items:	  	 	 	 	  	 
					
	 1
	  	Achieve Top Line Revenue Budget for 2006	  	25%	 	$10,000	  	 
	 2
	  	Achieve $2,000,000 in OEM/Licensing Revenue in 2006	  	25%	 	$10,000	  	 
	 3
	  	Manage and achieve overall operating expense budget for 2006	  	25%	 	$10,000	  	 
	 4
	  	Achieve Investor Relations objectives TBD	  	25%	 	$10,000	  	 

  

									
	 	  	Part 3: Stock Option Incentive	  	 	  	 	  	 
	1.	  	CEO Agreement date	  	40,000	  	Stock Options	  	 
	2.	  	January 15, 2007 - achievement of 2006 revenue in the approved Budget	  	25,000	  	Stock Options	  	Note: Stock options will be
prorated if performance
does not exceed 100%, but
still achieves 25%.
					
	3.	  	March 31, 2007 - achievement of 2006 net operating profit in the approved Budget	  	50,000	  	Stock Options	  	Note: Stock options will be
prorated if performance
does not exceed 100%, but
still achieves 25%.

  

			
		
	Prepared by Compensation Committee:	 	 /s/ Brian McCann

	 	 	Brian McCann
		
	 	 	 /s/ Fritz Zeck

	 	 	Fritz Zeck
		
	 	 	 /s/ Tony Nicolosi

	 	 	Tony Nicolosi
		
	 	 	Date: September 9, 2005
		
	Reviewed and Accepted by:	 	 /s/ Mike Bauer

	 	 	Mike Bauer - Appointed President & CEO
		
	 	 	Date: September 9, 2005

	**	This plan supersedes and cancels any and all other commission or bonus programs. 

  

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