Document:

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                                                                   Exhibit 10.42

             SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT
                                    AGREEMENT

          THIS SECOND AMENDMENT, dated as of December 31, 2003 (this
"AMENDMENT"), to the Second Amended and Restated Credit Agreement, dated as of
September 30, 2003 (as amended, supplemented or otherwise modified from time to
time, the "CREDIT AGREEMENT"), by and among General Electric Capital
Corporation, as Agent and Lender ("AGENT"), Inverness Medical Innovations, Inc.
("Innovations"), Wampole Laboratories, Inc. and Inverness Medical (UK) Holdings
Limited, as borrowers ("BORROWERS"), the other Credit Parties signatory thereto,
Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services
Inc., as documentation agent and co-syndication agent, UBS Securities LLC, as
co-syndication agent, and the lenders signatory thereto from time to time
(collectively, the "LENDERS").

                               W I T N E S S E T H

          WHEREAS, Borrowers have notified Agent that Borrowers and Inverness
Medical Canada Inc. - Medicale Inverness Canada Inc. ("IMC") desire that IMC
become an European Credit Party to the Credit Agreement and to cease being an
Excluded Subsidiary; and

          WHEREAS, Agent and Requisite Lenders have agreed to amend the Credit
Agreement, in the manner, and on the terms and conditions, provided for herein;

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

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

          2.   AMENDMENT TO SECTION 9 OF THE CREDIT AGREEMENT.

               (a)       SECTION 9.10 of the Credit Agreement is hereby amended
as of the Effective Date by adding a new sub-paragraph (b) to read as follows
and by re-lettering clauses (b) and (c) accordingly:

               "(b)      Without limiting the generality of sub-paragraph (a)
               above, for the purpose of creating a SOLIDARITE ACTIVE in
               accordance with Article 1541 of the Civil Code of Quebec, between
               each Lender, taken individually, on the one hand, and the Agent,
               on the other hand, each Credit Party and each such Lender
               acknowledge and agree with the Agent that such Lender and the
               Agent are hereby conferred the legal status of solidary creditors
               of each Credit Party in respect of all Obligations, present and
               future, owed by each Credit Party to each such Lender and the
               Agent (collectively, the "Solidary Claim"). Accordingly, but
               subject (for the avoidance of doubt) to Article 1542 of the Civil
               Code of Quebec, each Credit Party is irrevocably bound towards
               the Agent and each Lender

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               with respect to the amount of the entire Solidary Claim owed by
               it. As a Result of the foregoing, the parties hereto acknowledge
               that the Agent and each Lender shall at all times have a valid
               and effective right of action for the entire Solidary Claim of
               the Agent and such Lender and the right to give full acquittance
               for it. Accordingly, without limiting the generality of the
               foregoing, the Agent, as solidary creditor with each Lender,
               shall at all times have a valid and effective right of action in
               respect of all Obligations, present and future, owed by each
               Credit Party to the Agent and to the Lender or any of them and
               the right to give a full acquittance for same. The parties
               further agree and acknowledge that the Agent's Liens on the
               Collateral shall be granted to the Agent, for its own benefit and
               for the benefit of the Lenders."

               (b)       SECTION 9 of the Credit Agreement is hereby amended as
               of the Effective Date by adding a new SECTION 9.11 to read as
               follows:

               "9.11     COMPLIANCE WITH FOREIGN LAW. Each Lender hereby
               authorizes Agent on behalf of itself and Lenders to take a Lien
               upon all of IMC's right, title and interest in, to and under all
               personal (movable) property and assets, whether now owned or
               hereafter acquired under the laws of the Province of Quebec,
               Canada."

          3.   AMENDMENT TO ANNEX A OF THE CREDIT AGREEMENT. ANNEX A of the
Credit Agreement is hereby amended as of the Effective Date by adding a new
paragraph at the end thereof to read as follows:

                         "The term "security interest" shall include a
               hypothec."

          4.   REPRESENTATIONS AND WARRANTIES. To induce Agent and Requisite
Lenders to enter into this Amendment, the Credit Parties hereby, jointly and
severally (solidarily), represent and warrant that:

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

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

               (c)       This Amendment constitutes a legal, valid and binding
obligation of each of the Credit Parties, enforceable against each of them in
accordance with its terms.

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

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

               (f)       The representations and warranties of IMC and the
Credit Parties contained in the Credit Agreement and each other Loan Document
shall be true and correct in all material respects on and as of (i) the
Effective Date and (ii) the date IMC becomes a Credit Party (both before and
after giving effect thereto), in each case, with the same effect as if such
representations and warranties had been made on and as of such date, except that
any such representation or warranty which is expressly made only as of a
specified date need be true only as of such date.

          5.   NO OTHER AMENDMENTS/WAIVERS. Except as expressly provided herein,
(a) the Credit Agreement shall be unmodified and shall continue to be in full
force and effect in accordance with its terms and (b) this Amendment shall not
be deemed a waiver of any term or condition of any Loan Document and shall not
be deemed to prejudice any right or rights which Agent or any Lender may now
have or may have in the future under or in connection with any Loan Document or
any of the instruments or agreements referred to therein, as the same may be
amended from time to time.

          6.   OUTSTANDING INDEBTEDNESS; WAIVER OF CLAIMS. Each of the Borrowers
and other Credit Parties hereby acknowledges and agrees that as of December 22,
2003, (a) the aggregate outstanding principal amount of the European Revolving
Loan is $22,960,000, (b) the aggregate outstanding principal amount of US
Revolving Loan is $16,898,797.30, (c) the aggregate outstanding principal amount
of the US Term A Loan is $35,075,000, (d) the aggregate outstanding principal
amount of the US Term B Loan is $40,000,000, and (e) the aggregate outstanding
principal amount of the European Term Loan is $9,900,000, and that such
principal amount is payable pursuant to the Credit Agreement without defense,
offset, withholding, counterclaim or deduction of any kind. Borrowers and each
other Credit Party hereby waives, releases, remises and forever discharges
Agent, Lenders and each other

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Indemnified Person from any and all claims, suits, actions, investigations,
proceedings or demands arising out of or in connection with the Credit Agreement
(collectively, "CLAIMS"), whether based in contract, tort, delict, implied or
express warranty, strict liability, criminal or civil statute or common law of
any kind or character, known or unknown, which any Borrower or any other Credit
Party ever had, now has or might hereafter have against Agent or Lenders which
relates, directly or indirectly, to any acts or omissions of Agent, Lenders or
any other Indemnified Person on or prior to the Effective Date, PROVIDED, that
no Borrower nor any other Credit Party waives any Claim solely to the extent
such Claim relates to Agent's or any Lender's gross negligence or willful
misconduct.

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

          8.   EFFECTIVENESS. This Amendment shall become effective as of the
date hereof (the "EFFECTIVE DATE") only upon satisfaction in full in the
judgment of Agent of each of the following conditions:

               (a)       AMENDMENT. Agent shall have received six (6) original
signature pages to this Amendment, duly executed and delivered by Agent,
Requisite Lenders and each of the Credit Parties.

               (b)       JOINDER AGREEMENT. Agent shall have received a joinder
agreement, in form and substance satisfactory to Agent, duly executed by IMC
pursuant to which, INTER ALIA, IMC joins the Credit Agreement and the other Loan
Documents as an European Credit Party thereunder.

               (c)       PAYMENT OF EXPENSES. Borrowers shall have paid to Agent
all costs, fees and expenses owing in connection with this Amendment and the
other Loan Documents and due to Agent (including, without limitation, reasonable
legal fees and expenses).

               (d)       REPRESENTATIONS AND WARRANTIES. The representations and
warranties of or on behalf of each of the Credit Parties in this Amendment shall
be true and correct on and as of the Effective Date.

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

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

          11.  LANGUAGE CLAUSE. The undersigned have expressly requested that
this agreement and all related documents be drawn up in the English language. A
la demande

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expresse des soussignes, cette convention et tout document y afferent ont ete
rediges en langue anglaise.

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

                              BORROWERS

                              WAMPOLE LABORATORIES, INC.
                              INVERNESS MEDICAL (UK) HOLDINGS
                              LIMITED

                              By:  /s/  Anthony J. Bernardo
                                  ---------------------------------------
                              Name: Anthony J. Bernardo
                              Title: Duly Authorized Signatory

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                              AGENT AND LENDERS

                              GENERAL ELECTRIC CAPITAL
                              CORPORATION, as Agent and Lender

                              By: /s/  Illegible
                                  ----------------------------------------------
                                    Duly Authorized Signatory

                              MERRILL LYNCH CAPITAL, a division of
                              Merrill Lynch Business Financial Services Inc.,
                              as Co-Syndication Agent, Documentation Agent
                              and Lender

                              By: /s/  Illegible
                                  ----------------------------------------------
                                    Duly Authorized Signatory

                              UBS SECURITIES LLC, as Co-Syndication Agent

                              By: /s/  Illegible
                                  ----------------------------------------------
                                    Duly Authorized Signatory

                              By: /s/ Thomas J.W. Archie, Director
                                  ----------------------------------------------
                                    Duly Authorized Signatory

                              UBS AG, CAYMAN ISLANDS BRANCH, as a Lender

                              By: /s/  Thomas R. Salzano, Director
                                  ----------------------------------------------
                                    Duly Authorized Signatory

                              By: /s/  Joselin Fernandes, Associate Director
                              Banking Products Services, US
                              --------------------------------------------------
                                    Duly Authorized Signatory

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

                              INVERNESS MEDICAL INNOVATIONS, INC.
                              INVERNESS MEDICAL, INC.
                              UNIPATH DIAGNOSTICS, INC.
                              UNIPATH ONLINE, INC.
                              OSTEX INTERNATIONAL, INC.
                              INVERNESS MEDICAL INTERNATIONAL
                              HOLDING CORP.
                              INVERNESS MEDICAL INTERNATIONAL
                              HOLDING CORP. II
                              UNIPATH LIMITED
                              APPLIED BIOTECH, INC.
                              FOREFRONT DIAGNOSTICS, INC.
                              MORPHEUS ACQUISITION CORP.
                              MORPHEUS ACQUISITION LLC
                              INVERNESS MEDICAL CANADA INC. -
                              MEDICALE INVERNESS CANADA INC.

                              By: /s/  Anthony J. Bernardo
                                  ----------------------------------------------
                              Name: Anthony J. Bernardo
                              Title: Duly Authorized Signatory

                              ORGENICS INTERNATIONAL HOLDINGS BV
                              INVERNESS MEDICAL SWITZERLAND LTD
                              LIAB. CO
                              UNIPATH DIAGNOSTICS GMBH
                              CAMBRIDGE DIAGNOSTICS IRELAND
                              LIMITED
                              PREGYMED GMBH

                              By: /s/  Paul T. Hempel
                                  ----------------------------------------------
                              Name: Paul T. Hempel
                              Title: Duly Authorized Signatory

                              SELFCARE TECHNOLOGY, INC.

                              By: /s/  Duane L. James
                                  ----------------------------------------------
                              Name: Duane L. James
                              Title: Duly Authorized Signatory<Page>

                                                                   EXHIBIT 10.43

                                COMMERICAL LEASE

     THIS COMMERCIAL LEASE (the "Lease"), is made this 1st day of August, 1998,
between the Chang Family Trust ("Lessor"), and Applied Biotech, Inc., a
California corporation, with offices at 10237 Flanders Court, San Diego
California 92121 ("Lessee").

1.   LEASED PREMISES.

     Lessor hereby leases to Lessee and Lessee hereby leases from Lessor, upon
     and subject to the terms and provisions of this Lease, the premises
     described on Appendix A and located at 10237 Flanders Court, San Diego,
     California, together with all buildings and other improvements now or
     hereafter located thereon and all rights appurtenant thereto (the
     "Premises"). For the purposes of this Agreement, the parties hereby agree
     that the building on the Premises contains 40,000 square feet.

2.   TERM.

     Lessor demises the Premises for a term of five (5) years, commencing August
     1, 1998, and ending on July 31, 2003 (the "Term"), unless terminated
     earlier pursuant to the terms of this Lease.

3.   OPTION TO EXTEND TERM.

     Lessor grants to Lessee an option ("Option") to extend the Term for two (2)
     additional periods of five (5) years each, the first such extension
     commencing on August 1, 2003 and the second such extension commencing on
     August 1, 2008. If the Lessee exercises the Option, the additional term of
     five (5) years shall constitute part of the Term. To exercise the Option
     for the first extension, Lessee must give Lessor notice in writing at least
     sixty (60) days prior to August 1, 2003. To exercise the Option for the
     second extension, Lessee must give Lessor notice in writing at least sixty
     (60) days prior to August 1, 2008. All terms and conditions of this Lease
     shall continue to apply during the term of the Option.

4.   RENT.

     Commencing on August 1, 1998 and continuing throughout the initial five (5)
     year Term, Lessee shall pay to Lessor an annual base rent equal to four
     hundred forty thousand dollars ($440,000) ("Annual Base Rent"), payable in
     equal monthly installments of thirty six thousand, six hundred sixty-six
     dollars and sixty-six cents ($36,666.66) in advance on the first business
     day of each month for that month's rental. If Lessee exercises its Options
     to extend the Term, (i) the Annual Base Rent for the first five (5) year
     extension shall be four hundred eighty thousand dollars ($480,000), payable
     in equal monthly installments of forty thousand dollars ($40,000) in
     advance on the first business day of each month for that month's rental,
     and (ii) the Annual Base Rent for the second five (5) year extension shall
     be five hundred twenty thousand dollars ($520,000), payable in equal
     monthly installments

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     of forty three thousand three hundred thirty-three dollars and thirty-three
     cents ($43,333.33) in advance on the first business day of each month for
     that month's rental. All Annual Base Rent payments shall be made to Lessor,
     at the address specified above or any address as specified in writing by
     Lessor. The amount of monthly installments payable by Lessor shall be
     prorated for any partial month of the Term.

5.   TAXES/ASSESSMENTS/UTILITIES

     5.1       As additional rent, the Lessee shall pay when due all real
               property taxes and other assessments (hereinafter the "Taxes and
               Assessments"), of every nature and description, whether general
               or special, (including, without being limited to, taxes and other
               assessments of water, sewer, fire or other special district)
               levied or assessed against the Premises during the Term;
               provided, however, that Lessee shall be entitled to elect to pay
               by installment payments any Taxes and Assessments and provided
               further that any Taxes and Assessments which apply for periods
               not concurrent with the Term shall be prorated so that Lessee
               pays only that portion which accrues or accrued during the Term.

     5.2       Taxes and Assessments payable hereunder for the calendar year in
               which this Lease commences or terminates will be prorated on the
               basis of a 365 day year, the Lessee paying the Taxes and
               Assessments assessed as of the December 31 immediately preceding
               the calendar year in which this Lease commences or terminates in
               proportion to that part of the calendar year during which the
               Lessee has possession of the Premises. If this Lease terminates
               prior to the time when the amount of the Taxes and Assessments
               payable for the calendar year in which termination occurs are
               known, appropriate provision for their adjustment will be made.

     5.3       The Lessee will furnish to Lessor evidence of the payment of the
               Taxes and Assessments within 10 days following the date upon
               which the payment is due.

     5.4       The Lessee shall have the right to contest the amount or validity
               of any Tax and Assessment by appropriate proceedings but only
               after payment of such Tax and Assessment unless such payment
               would bar such contest.

     5.5       Lessee shall pay all utilities with respect to the Premises,
               including but not limited to water, sewer, heat, gas, oil and
               electricity, and all services with respect to the Premises and
               the entranceways, exit ways and driveways providing access to the
               Premises, including, but not limited to, maintenance and
               cleaning, landscaping and snow removal.

6.   CARE AND MAINTENANCE OF PREMISES.

     Except as set forth in Section 15 hereof, Lessee shall, at its own expense,
     keep and maintain the Premises in good and safe condition and repair,
     reasonable wear and tear excepted, including roof, exterior walls,
     structural foundations, plate glass, electrical

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     wiring, plumbing and heating installations and any other system or
     equipment upon the Premises.

7.   ALTERATIONS AND IMPROVEMENTS.

     Lessee may make any non-structural alterations and improvements to the
     Premises which do not (a) materially or adversely affect the improvements
     on the Premises, (b) injure the structural safety of the buildings on the
     Premises, or (c) materially impair the value of the Premises or the
     building on the Premises. Any structural alterations and improvements to
     the Premises shall be subject to the Lessor's prior approval, which
     approval shall not be unreasonably withheld, conditioned or delayed.

8.   LESSEE'S TRADE FIXTURES.

     For the purposes of this Agreement, the term "Lessee's Trade Fixtures"
     means all machinery, equipment and other items of personal property owned
     by the Lessee and especially designed or fitted for use in its trade or
     business which are not affixed or incorporated into the buildings in such a
     manner that their removal will cause substantial damage to the structure of
     the building. It is understood that Lessee may install Lessee's Trade
     Fixtures in the building on the Premises. All Lessee's Trade Fixtures will,
     notwithstanding the manner of their installation, remain the property of
     the Lessee and will be removed by the Lessee upon the termination of this
     Lease. The Lessee will repair any damage to the Premises occasioned by the
     removal of Lessee's Trade Fixtures.

9.   ORDINANCES AND STATUTES.

     Lessee shall comply with all statutes, ordinances and requirements of all
     municipal, state and federal authorities now in force, or which may
     hereafter be in force, pertaining to the Premises, occasioned by or
     affecting the use thereof by Lessee.

10.  ASSIGNMENT AND SUBLETTING.

     Lessee shall not assign this Lease or sublet any portion of the Premises
     without prior written consent of the Lessor, which consent shall not be
     unreasonably withheld or delayed. Notwithstanding the foregoing, Lessee
     may, without the prior consent of Lessor, assign this Lease or sublet all
     or a portion of the Premises to a parent, subsidiary, or entity under
     common control with Lessee, or to any party who acquires all or
     substantially all of the assets of Lessee, whether by way of merger,
     consolidation, reorganization or sale.

11.  ENTRY AND INSPECTION.

     Lessee shall permit Lessor or Lessor's agents to enter upon the Premises at
     reasonable times and upon reasonable notice, for the purposes of inspecting
     the same. Lessee will permit Lessor at any time within sixty (60) days
     prior to the expiration of this Lease to place upon the Premises any usual
     "To Let" or "For Lease" signs, and permit persons desiring to lease the
     same to inspect the Premises thereafter.

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12.  INDEMNIFICATION.

     12.1      Lessee shall hold harmless, indemnify and defend Lessor and its
               employees and agents from all liability, penalties, losses,
               damages, costs, expenses, causes of action, claims and/or
               judgments (collectively "Losses") arising by reason of any death,
               bodily injury, personal injury or property damage to the extent
               resulting from the negligent act or omission of Lessee, its
               agents, contractors, or employees, a breach by Lessee of this
               Lease, or a violation by Lessee of any law.

     12.2      Lessor shall hold harmless, indemnify and defend Lessee and its
               employees and agents from all Losses arising by reason of any
               death, bodily injury, personal injury or property damage to the
               extent resulting from the negligent act or omission of Lessor,
               its agents, contractors, or employees, a breach by Lessor of this
               Lease, or a violation by Lessor of any law.

13.  INSURANCE.

     13.1      The Lessee, at its expense, shall maintain public liability
               insurance in the amount of $1,000,000 for bodily injury or death
               in any one accident and $1,000,000 per occurrence for property
               damage relating or claimed to relate to the Premises The Lessee
               shall maintain insurance on the buildings on the Premises for the
               benefit of the Lessor, any mortgagee of the Lessor, and the
               Lessee (as their interests may appear) against loss or damage by
               fire or other risks now embraced by standard "all risks of loss"
               coverage, so-called, in an amount not less than one hundred
               percent (100%) of the then full replacement cost of the
               buildings. The Lessee shall also purchase boiler and machinery
               insurance insuring the Lessor and the Lessee.

     13.2      Lessee shall provide Lessor with a Certificate of Insurance
               showing Lessor as Additional Insured - Lessor on the public
               liability insurance referenced in Section 13.1. The Certificate
               shall provide for a ten-day written notice to Lessor in the event
               of cancellation or material change of coverage. To the maximum
               extent permitted by insurance policies that may be owned by
               Lessor or Lessee, Lessee and Lessor, for the benefit of each
               other, waive any and all rights of subrogation that might
               otherwise exist.

14.  EMINENT DOMAIN.

     If the Premises or any part thereof are taken in condemnation proceedings
     or by exercise of any right of eminent domain, (i) the Lessor will be
     entitled to collect from the condemnor the entire award that may be made in
     such proceeding without deduction therefrom for any interest of the Lessee
     under this Lease except that the Lessee shall be entitled to file a claim
     and/or bring a separate action for the value of that portion of the
     Lessee's Trade Fixtures and improvements which were taken and the cost of
     relation of Lessee; and (ii) this Lease will terminate on the date of such
     taking and the Annual Base Rent and all other

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     payments required to be made by the Lessee hereunder will be apportioned
     and paid to the date of such taking.

15.  DESTRUCTION OF PREMISES.

     In the event that all or a portion of the Premises or the building on the
     Premises are damaged by fire or other peril or casualty, and such
     restoration, repair or rehabilitation can be made within thirty (30) days
     of the date of such damage, then Lessor shall immediately proceed with all
     due diligence to restore, repair or rehabilitate the Premises and/or
     building to its condition prior to such loss. Lessor shall have the right
     to all applicable insurance for the purpose of making any such restoration,
     repairs or rehabilitation, and the amount recovered from such insurance
     shall be held in trust by Lessor and solely used to pay the costs for such
     restoration, repair or rehabilitation. During the period of restoration,
     repair or rehabilitation, the Annual Base Rent shall be equitably adjusted
     (based on the square footage area suitable for Lessee's use and occupancy,
     if any) until the entire Premises and building are suitable, in Lessee's
     reasonable judgment, for Lessee's use and occupancy. In the event the
     damage cannot be repaired within thirty (30) days after the date of such
     damage, either party may, at any time thereafter, elect by written notice
     to the other to terminate this Lease as of the date of the damage. In case
     of damage contemplated under this section, the Lessor shall, within ten
     (10) days of the loss, advise Lessee of the following: (i) estimated cost
     of restoration, repair and rehabilitation; (ii) proposed commencement date
     for making the restoration and repairs; and (iii) date by which the
     restoration, repairs and rehabilitation will be completed. In the event
     this Lease is not terminated pursuant to the above, all Annual Base Rent
     shall abate on a daily basis during the period that the Premises are not
     suitable for Lessee's use and occupancy. Lessor shall complete such repairs
     as promptly as possible. A total destruction of any of the buildings
     situated on which the Premises shall terminate this Lease.

16.  LESSOR'S REMEDIES ON DEFAULT.

     The Lessee will be in default under this Lease upon the occurrence of any
     of the following events or conditions as to the Lessee; (i) the Lessee's
     failure to pay the Annual Base Rent or make the other payments at the times
     and in the manner provided for herein, such failure having continued for a
     period of 10 days after written notice from Lessor; (ii) the Lessee's
     failure to perform or fulfill any other term, condition or agreement
     contained or referred to herein, on the part of the Lessee to be performed
     or fulfilled, such failure having continued, in the absence of reasonable
     efforts having been made by Lessee to correct the same, for a period of
     thirty (30) days after written notice thereof shall have been given by the
     Lessor to the Lessee, provided that if such failure to perform or fulfills
     such term, condition or agreement cannot reasonably be remedied within
     thirty (30) days, within such further time as may be reasonably necessary,
     with due diligence, to complete such performance; (iii) proceedings in
     bankruptcy or for liquidation, reorganization, or rearrangement of the
     Lessee's affairs shall be instituted by or against the Lessee, and such
     proceedings shall not be dismissed within 60 days of their filing; (iv) a
     receiver or trustee shall be appointed for all or substantially all of
     Lessee's business or assets on the grounds of Lessee's insolvency; (v) the
     Lessee shall make an assignment for the benefit of its creditors.

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17.  QUIET ENJOYMENT.

     Upon paying the rent and all other payments required to be made by the
     Lessee hereunder, and upon the Lessee performing and fulfilling all terms,
     conditions or agreements on the Lessee's part to be performed and
     fulfilled, the Lessee will quietly have and enjoy the Premises during the
     Term without hindrance by any person claiming by, through or under the
     Lessor.

18.  NOTICES.

     Any notice which either party may, or is required to give to the other
     party under this Lease shall be given by facsimile transmission, overnight
     courier, or certified or registered mail, postage prepaid, properly
     addressed to the respective parties as follows:

     If to Lessee:               Diagnostic Reagents, Inc.
                                 Attn.:  Dr. Yuh-geng Tsay
                                 601 California Avenue
                                 Sunnyvale, California  94086

     With a copy to:             Sybron Laboratory Products Corporation
                                 Attn.:  Michael K. Bresson, Esq.
                                 48 Congress Street
                                 Portsmouth, New Hampshire  03801

     If to Lessor:               Shung-Ho Chang Family Trust
                                 Attn.:

     Or to such other addresses as either party may from time to time by written
     notice designate as its address for the purposes of this Agreement and
     shall be deemed to have been received on the day following dispatch of any
     facsimile transmission sent after 5:00 PM EST, the day of receipt from any
     courier, and the fourth day following the mailing of any letter.

19.  GOVERNING LAW.

     This Lease and the performance thereof will be governed, interpreted,
     construed and regulated in accordance with the laws of the State of
     California, without regard to any conflicts of laws.

20.  SUBORDINATION.

     This Lease is and shall be subordinated to all existing and future liens
     and encumbrances against the property.

21.  ENTIRE AGREEMENT.

<Page>

     The foregoing supercedes any and all other agreements, either oral or in
     writing, between the parties, and constitutes the entire agreement between
     the parties with respect to its subject matter. Each party acknowledges and
     represents that no representations, inducements, promises or agreements,
     orally or otherwise, have been made by any party, or any person acting on
     behalf of any party, which are not embodied in this Agreement, and that no
     other agreement or statements of promise not contained in this Agreement
     shall be valid or binding. This Agreement may not be altered, amended or
     modified except by written instrument signed by both parties.

22.  ORDINANCES AND STATUTES.

     Lessee shall copy with all statutes, ordinances and requirements of all
     municipal, state and federal authorities now in force, or which may
     hereafter by in force, pertaining to the Premises, occasioned by or
     affecting the use thereof by Lessee.

     IN WITNESS WHEREOF, and intending to be legally bound, the parties have
signed this Agreement below.

LESSOR                                    LESSEE

CHANG FAMILY TRUST                        APPLIED BIOTECH, INC.

By:    /s/ Shung-Ho Chang                 By:  /s/ Yuh-geng Tsay
   -----------------------------------       ---------------------------------

Name:   Shung-Ho Chang                    Name:  Yuh-geng Tsay
     ---------------------------------         -------------------------------

Title:  Trustee                           Title: President of DRI
      --------------------------------         -------------------------------

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