Document:

EX-10.1

EXHIBIT 10.1

COMMERCIAL LEASE

	 	 	 	 	 
	1.

	 	PARTIES
	 	Vintage-Rockland Realty Trust, LESSOR, which expression shall include heirs,
successors, and assigns where the context so admits, does hereby lease to
Osmetech, Inc., LESSEE, which expressions shall include successors, executors,
administrators, and assigns where the context so admits, and the LESSEE hereby
leases the following premises:
	 
	 	 	 	 
	2.

	 	PREMISES
	 	Approximately 14,400 square feet, located at 136 Weymouth Street, Rockland, MA, as
shown on the attached plan. All measurements subject to verification by LESSEE as
hereinafter set forth, together with the right to use in common, with others
entitled thereto, the parking areas and common areas necessary for access to said
leased premises. On or before the Commencement Date, LESSEE may remeasure the
leased premises in accordance with BOMA standards (ANSI Z65.1-1980; approved July
31, 1980 and reaffirmed 1989) and if the square footage differs from the square
footage indicated herein, then the square footage for purposes of determining base
rent as set forth in Paragraph 4, the base rental due hereunder, and LESSEE’S pro
rata share of Operating Expenses shall be immediately adjusted to reflect the
amount of square footage set forth in LESSEE’s measurement of the Premises.
	 
	 	 	 	 
	3.

	 	TERM
	 	The term of this lease shall be for 5 (five) years, commencing upon January 15,
2005 (“Commencement Date”) and ending 60 months from the Commencement Date.
Notwithstanding any term or provision of this Lease to the contrary, in the event
that LESSEE is unable to obtain all requisite governmental approvals (the
“Approvals’) for LESSEE’s occupancy of the premises upon completion of “Lessee’s
Work” due to objections from any such governmental agency to the structure of the
building and/or premises, and LESSOR fails to cure such structural problem widen
fifteen (15) days following receipt of notice from LESSEE thereof, then,
commencing on the sixteenth (16th) following LESSOR’S receipt of notice
from LESSEE of such structural problem, LESSEE shall have the right to terminate
this Lease upon delivery of written notice thereof to LESSOR.
	 
	 	 	 	 
	4.

	 	RENT
	 	The Lessee shall pay to the LESSOR the base rent as outlined below:

	 	 	 	 	 	 	 
	Year 1
	 	$5.50 	* PSF 	$55,000 per year, payable in advance in monthly installments of $4,583.33
	Year 2
	 	$5.50 	 PSF 	$79,200 per year, payable in advance in monthly installments of $6,600.00
	Year 3
	 	$6.00 	 PSF 	$86,400 per year, payable in advance in monthly installments of $7,200.00

 

 

	 	 	 	 	 	 	 
	Year 4
	 	$6.50 	 PSF 	$93,600 per year, payable in advance in monthly installments of $7,800.00
	Year 5
	 	$6.76 	 PSF 	$97,344 per year, payable in advance in monthly installments of $8,103.33

 

			
	*	 	In year 1, rent is based on the leased premises less the existing warehouse area.
Rent payments subject to adjustment based on measurement of actual square footage.

	 	 	 	 	 
	5.

	 	SECURITY

DEPOSIT
	 	Upon execution of this lease, the LESSEE shall pay to the LESSOR the amount of
$8,103.33.00 dollars, which shall be held as a security for the LESSEE’S
performance as herein provided and refunded to the LESSEE at the end of this lease
subject to the LESSEE’S satisfactory compliance with the conditions hereof.
	 
	 	 	 	 
	6.

	 	ADDITIONAL RENT

OPERATING COSTS
	 	The LESSEE shall pay to the LESSOR as additional rent hereunder. LESSEE’S
pro-rata share of Operating Expenses for maintaining and operating the building
known as 136-180 Weymouth Street, Rockland, MA. Operating Expenses are defined
for the purposes of this agreements as only building insurance, real estate taxes,
snowplowing, landscaping, water and sewer costs, repairs.
	 
	 	 	 	 
	 

	 	 	 	LESSEE’S pro-rata share is 19.5% (14,400 SF / 74,379 SF building area = 19.4%)
	 
	 	 	 	 
	 

	 	 	 	LESSEE shall pay 1/12th of its pro rata share of the previous years
actual operating expenses monthly. LESSEE’s proportionate share of expenses shall
be paid as additional rent monthly, and shall commence upon rent commencement,
Tenant’s proportionate share of estimated operating expenses for Year 1, which
shall constitute the total additional rent payable by Tenant for Year 1 of the
lease term, shall be $15,856.86, or $1.10 PSF per year. Notwithstanding any term
or provision of this lease to the contrary, regardless of the actual amount of
Operating Expenses for the building for any year of the lease term, commencing
with the second year of the lease term, the total amount of Operating Expenses for
which LESSEE shall be obligated to pay its pro rata share as additional rent
hereunder shall not increase for any lease year by more than Ten Thousand and
No/100 Dollars ($10,000.00) over the amount payable for the immediately preceding
year of the lease term without the prior written consent of LESSEE.
	 
	 	 	 	 
	 

	 	 	 	LESSEE shall pay monthly $1,321.41 in addition to the rent stated in Paragraph 4.
At the end of arch calendar year of the Lease Term, LESSOR shall provide LESSEE
with an operating statement, including copies of the actual bills, reflecting
LESSOR’s total operating costs and LESSEE’s pro-rata share thereof. If LESSEE’s
share of actual operating costs for such

 

 

	 	 	 	 	 
	 

	 	 	 	previous calendar year is less than the
amount paid for such calendar year, LESSOR shall promptly refund the difference to
LESSEE. If LESSEE’s share of the operating costs exceeds the sum paid, LESSEE
shall promptly pay the amount of said excess to LESSOR.
	 
	 	 	 	 
	 

	 	 	 	Set Operating Costs for the building for the first year of the Lease Term attached
hereto as Addendum A.
	 
	 	 	 	 
	7.

	 	UTILITIES
	 	The LESSEE shall pay, as they become due, all bills for utility services,
including electricity and gas, furnishing heat, air-conditioning, and other
purposes that are furnished to the leased premises and separately metered. The
LESSOR agrees to provide, at LESSOR’s sole cost and expense, utility service to
the leased premises, subject to reasonable interruption due to any accident, to
the making of repairs, alterations, or improvements, to labor difficulties, to
trouble in obtaining electricity, service, or supplies from the sources from which
they are usually obtained for said building, or any cause beyond the LESSOR’s
reasonable control, provided, however, LESSOR shall not be relieved of its
obligations to provide utility services, or liability associated therewith, if any
of the aforementioned sources or interruption are caused by or attributable to the
negligence or intentional misconduct of LESSOR. Notwithstanding any term or
provision of this Lease to the contrary, in the event that one or more utility
services shall be interrupted in the leased premises for a period of fifteen (15)
consecutive days due to any cause other than LESSEE’S negligence or intentional
misconduct, then LESSEE shall have the right to terminate this lease by delivery
of written notice thereof to LESSOR, which termination shall be effective upon the
date set forth in such written notice.
	 
	 	 	 	 
	 

	 	 	 	LESSOR shall have no obligation to provide utilities or equipment other than the
utilities and equipment within the premises as of the commencement date of this
lease. In the event LESSEE requires additional utilities or equipment, the
installation and maintenance thereof shall be the LESSEE’S sole obligation,
provided that such Installation shall be subject to the written consent of the
LESSOR, which consent shall not be unreasonably withheld, conditioned or delayed.
	 
	 	 	 	 
	8.

	 	USE OF LEASED PREMISES
	 	 The LESSEE shall use the leased premises only for the purpose of warehouse,
manufacturing and research and development use.
	 
	 	 	 	 
	9.

	 	COMPLIANCE
	 	The LESSEE acknowledges that no trade or occupation shall be

 

 

	 	 	 	 	 
	 

	 	WITH LAWS
	 	conducted in the leased premises or use made thereof which will be unlawful, unreasonably noisy
outside the leased premises, or contrary to any law or any municipal by-law or
ordinance in force in the city or town in which the premises are situated.
	 
	 	 	 	 
	10.

	 	FIRE INSURANCE
	 	The LESSEE shall not permit any use of the leased premises which will make
voidable any insurance on the property of the leased premises are a part, or on
the contents of said property or which shall be contrary to any law or regulation
from time to time established by the New England Fire Insurance Rating
Association, or any similar body succeeding to its powers. The LESSEE shall on
demand reimburse the LESSOR, and all other tenants, all extra insurance premiums
caused solely by the LESSEE’S use of the premises. Notwithstanding the foregoing,
the provisions of this paragraph 10 shall only be enforceable against LESSEE for
LESSEE’S use of the leased premises for uses other than those permitted under
paragraph 8 above.
	 
	 	 	 	 
	11.

	 	MAINTENANCE	 	 
	 
	 	 	 	 
	A.

	 	LESSEE’S OBLIGATIONS
	 	Provided such maintenance and/or repairs are not necessitated by the negligence or
intentional misconduct of LESSOR, the LESSEE agrees to maintain the leased
premises in good condition, damage by fire and other casualty and normal wear and
tear excepted, and whenever necessary, to replace plate glass and all other glass
therein, acknowledging that the leased premises are as of the date of this lease
in good order and the glass whole. The LESSEE shall not permit the leased
premises to suffer any waste. LESSEE shall make all repairs and replacements and
perform all work necessary to satisfy the obligations described herein.
	 
	 	 	 	 
	B.

	 	LESSOR’S OBLIGATIONS
	 	The LESSOR agrees to maintain the structure of the building, including, but not
limited to the roof, foundation, exterior walls and utility lines exterior to the
leased premises, of which the leased premises are a part, in good condition
throughout the lease term or as it may be put in during the time of lease,
reasonable wear and tear only excepted, unless such maintenance is required
because of the negligent actions of the LESSEE or those for whose conduct the
LESSEE is legally responsible. LESSOR hereby represents and warrants that as of
the date of delivery of possession of the leased premises to LESSEE, the leased
premises, including without limitation all utility systems, heating, ventilation
and air conditioning and other systems and equipment which are part of the leased
premises as of the date of delivery thereof are in good

 

 

	 	 	 	 	 
	 

	 	 	 	working order. Prior to the Commencement Date, LESSOR shall repair or replace the three Trane Model
#SFCB-C133 units currently serving the entire facility at 136 Weymouth Street
(collectively. the “Existing Units”), in order that these are in good working
condition for continuous service during the term of this Lease, and LESSOR shall
provide LESSEE with written documentation of said repairs and working condition
promptly following the Commencement Date. Notwithstanding the foregoing, prior to
the Commencement Date, LESSOR hereby agrees to replace one of the existing Trane
units (commonly referred to as Unit Number 10) with a new unit of at least the
same quality and operational capacity (the “New Unit”). In the event that during
the term of this Lease replacement or major repair of any of the Existing Units or
the New Unit is required, or any repair costs over and above normal annual
maintenance charges (as measured on a per unit basis), then the LESSOR and LESSEE
shall equally split a) the total replacement costs including labor or b) the
repair costs over and above standard annual maintenance charges, whichever
condition applies. It is noted for reference that the lessor has determined that
the current complete replacement cost including labor is $7,000 per unit, or
$21,000 for all three units. Notwithstanding any term or provision of Lease to
the contrary, for a period of Ninety (90) days following the Commencement Date
(the “Warranty Period”), LESSOR shall warrant that the Existing Units and the New
Unit shall remain in good working order, and LESSOR hereby agrees to promptly make
any and all maintenance, repairs and/or replacements to the Existing Units and the
New Unit at LESSOR’S sole cost and expense upon receipt of notice from LESSEE
during the Warranty Period that such Existing Units and/or New Unit are not in
good working order.
	 
	 	 	 	 
	 

	 	 	 	In addition to the foregoing, the LESSOR shall provide the currently rooftop
installed York Model #DNA 036N07225C Serial #NFGM067767 and the York spilt system
Model H20B060S06A Serial #EDFM 148881 (collectively, the “Rooftop System”) as-is
to the LESSEE to be exclusively used to service the leased premises, and the
LESSEE may use, upgrade, repair and maintain these as LESSEE determines necessary
or appropriate during the term of this Lease, and LESSEE shall not be obligated to
restore, repair or replace such Rooftop System at the expiration or earlier
termination of this Lease. LESSOR shall not be obligated to restore, repair or
replace the Rooftop System.
	 
	 	 	 	 
	12.

	 	ALTERATIONS-
	 	The LESSEE shall not make structural alterations or additions to

 

 

	 	 	 	 	 
	 

	 	ADDITIONS
	 	the leased premises, but may make non-structural alterations provided the LESSOR consents
thereto in writing, which consent shall not be unreasonably withheld, conditioned
or delayed. All such allowed alterations shall he at LESSEE’S expense and shall
be in quality at least equal to the construction at the time such alterations are
performed. LESSEE shall not permit any mechanics’ liens or similar liens, to
remain upon the leased premises for labor and material furnished to LESSEE or
claimed to have been furnished to LESSEE in connection with work of any character
performed or claimed to have been performed at the direction of LESSEE and shall
cause any such lien to be released of record or bonded off forthwith without cost
to LESSOR. Any alterations or improvements made by the LESSEE shall become the
property of the LESSOR at the termination of occupancy as provided herein.
Notwithstanding the foregoing, LESSEE shall have the right to install additional
heating, ventilation and air conditioning and/or other utility system of
sufficient capacity, size and other specifications to satisfy LESSEE’S operational
needs, as determined by LESSEE, in its sole but reasonable discretion, in the
leased premises during the initial term or any extended term, and Landlord hereby
expressly consents thereto, provided such system(s) shall remain the property of
LESSEE. Any such additional heating, ventilation and air condition and/or other
utility system installed by LESSEE shall remain in the Leased Premises upon the
expiration or earlier termination of this Lease.
	 
	 	 	 	 
	13.

	 	ASSIGNMENT - SUBLEASING
	 	The LESSEE shall not assign or sublet the whole or any part of the leased premises
without LESSOR’S prior written consent, said consent shall not be unreasonably
withheld, conditioned or delayed. Notwithstanding such consent, LESSEE shall
remain liable to LESSOR for the payment of all rent and for the full performance
of the covenants and conditions of this lease. Notwithstanding any term or
provision of this Lease to the contrary, LESSEE may assign or sublet the whole or
any part of the leased premises to any entity which controls, is controlled by, or
its under common control with LESSEE without LESSOR’S consent, provided any such
assignee or sublessee shall only use the leased premises for the purposes set
forth in Paragraph 8 of this lease.
	 
	 	 	 	 
	14.

	 	SUBORDINATION
	 	This lease shall be subject and subordinate to any and all mortgages, deeds of
trust and other instruments in the nature of a mortgage, now or at any time
hereafter, a lien or liens on the property of which the leased premises are a part
and the LESSEE

 

 

	 	 	 	 	 
	 

	 	 	 	shall, when requested, promptly execute and deliver such commercially reasonable written instruments as shall be necessary to show the
subordination of this lease to said mortgages, deeds of trust, or other such
instruments in the nature of a mortgage. Notwithstanding the foregoing, this
Lease shall not be subordinated to any mortgages, deed of trust or other
instruments unless and until LESSEE shall receive a commercially reasonable
non-disturbance agreement from the holder of each such mortgage, deed of trust or
other Instrument.
	 
	 	 	 	 
	15.

	 	LESSOR’S ACCESS
	 	The LESSOR, or agents of the LESSOR, may, upon reasonable prior notice, at
reasonable times, enter to view the leased premises and may remove placards and
signs not approved and affixed as herein provided, and make repairs and
alterations as LESSOR shall elect to do and may show the leased premises to
others, and at any time within three (3) months before the expiration of the term,
may affix to any suitable part of the leased premises a notice for letting or
selling the leased premises or property of which the leased premises are a part
and keep the same so affixed without hindrance or molestation.
	 
	 	 	 	 
	16.

	 	INDEMNIFICATION AND
LIABILITY
	 	LESSOR shall not be liable for any loss or damage occasioned by the use or escape
of water or by the bursting of pipes within the leased premises from any claim or
damage resulting from neglect in not removing snow and ice from the sidewalks
bordering the premises so leased, or by any nuisance made or suffered on the
leased premises, unless such loss is caused by the acts or omissions of the
LESSOR. The removal of snow and ice from the sidewalks bordering upon the leased
premises shall be LESSEE’S responsibility.
	 
	 	 	 	 
	17.

	 	LESSEE’S LIABILITY
INSURANCE
	 	The LESSEE shall maintain with respect to the leased premises and the property of
which the leased premises are a part comprehensive public liability insurance in
the amount of $1,000,000 with property damage insurance in limits of $2,000,000 in
responsible companies qualified to do business in Massachusetts and in good
standing therein insuring the LESSOR as well as the LESSEE against injury to
persons or damage to property as provided. The LESSEE shall deposit with the
LESSOR certificates for such insurance prior to the commencement of the term, and
thereafter within thirty (30) days prior to the expiration of any such policies.
All such insurance certificates shall provide that such policies shall not be
cancelled without at least ten (10)

 

 

	 	 	 	 	 
	 

	 	 	 	days prior mitten notice to each assured named therein.
	 
	 	 	 	 
	18.

	 	FIRE, CASUALTY-

EMINENT DOMAIN
	 	Should more than 50% of the leased premises, or of the property of which they are
a part, be substantially damaged by fire or other casualty, or be taken by eminent
domain, the LESSOR or LESSEE may elect to terminate this lease upon delivery of
written notice thereof to the other within thirty (30) days of such casualty or
taking. In the event that less than 50% of the Premises are damaged or taken or
in the event neither party elects to terminate within thirty (30) days of the
fire, casualty or taking if more than 50% of the Premises is damaged or taken,
then LESSOR shall restore the leased premises to their condition immediately prior
to such fire or casualty. LESSOR shall provide LESSEE with written notice of
LESSOR’S assessment of the percentage damage to the leased premises and of
LESSOR’S intention with respect to restoration of the leased premises within
thirty (30) days of such fire, casualty or taking. LESSEE shall receive a just
and proportionate abatement of rent for any such fire or other casualty or taking
LESSEE may elect to terminate this lease if:
	 
	 	 	 	 
	 

	 	 	 	(a)   The
LESSOR fails to give written notice within thirty (30) days of intention
to restore leased premises, or

	 
	 	 	 	 
	 

	 	 	 	(b)   The LESSOR fails to restore leased premises to a condition substantially
suitable for their intended use within ninety (90) days of said fire, casualty, or
taking.

	 
	 	 	 	 
	 

	 	 	 	The LESSOR reserves, and the LESSEE grants to the LESSOR, all rights which the
LESSEE may have for damages or injury to the leased premises for any taking by
eminent domain, except for damage to the LESSEE’S fixtures, property, or
equipment.
	 
	 	 	 	 
	19.

	 	DEFAULT AND BANKRUPTCY
	 	In the event that:
	 
	 	 	 	 
	 

	 	 	 	(a)   The LESSEE shall default in the payment of any installment of rent or other
sum herein specified and such default shall continue for ten (10) days after
LESSEE’S receipt of written notice thereof, or

	 
	 	 	 	 
	 

	 	 	 	(b)   The LESSEE shall default in the observance or performance of any other of the
LESSEE’S covenants, agreements, or obligations hereunder and such default shall
not be corrected within thirty (30) days after LESSEE’S receipt of written notice
thereof; or

 

 

	 	 	 	 	 
	 

	 	 	 	(c)   The LESSEE shall be declared bankrupt or insolvent according to law, or, if
any assignment shall be made of LESSEE’S property for the
benefit of creditors.

	 
	 	 	 	 
	 

	 	 	 	then the LESSOR shall have the right thereafter, while such default continues, to
re-enter and take complete possession of the leased premises, to declare the term
of this lease ended, and to remove the LESSEE’S effects, without prejudice to any
remedies which might be otherwise used for arrears of rent or other default. If
the LESSEE shall default, after reasonable notice thereof, in the observance or
performance of any conditions or covenants on LESSEE’S part to be observed or
performed under or by virtue of any of the provisions in any article of this
lease, the LESSOR, without being under any obligation to do so and without thereby
waiving such default, may remedy such default for the account and at the expense
of the LESSEE. If the LESSOR makes any expenditures or incurs any obligations for
the payment of money in connection therewith, including but not limited to,
reasonable attorney’s fees in instituting, prosecuting, or defending any action or
proceeding, such sums paid or obligations insured, with interest at a rate of 12
per rent per annum and costs, shall be paid to the LESSOR by the LESSEE as
additional rent.
	 
	 	 	 	 
	20.

	 	NOTICE
	 	Any notice from the LESSOR to the LESSEE relating to the leased premises or to the
occupancy thereof shall be deemed duty served three (3) days after mailing, if
mailed to the leased premises and the notices addresses set forth below,
registered or certified mail, return receipt requested, postage prepaid, or one
(1) day slier mailing if delivered by a national overnight courier addressed to
the LESSES at the leased premises and the notice addresses set forth below. Any
notice from the LESSEE to the LESSOR relating to the leased premises or to the
occupant thereof shall be deemed duly served three (3) days after mailing, if
mailed to the LESSOR by registered or certified mail, return receipt requested,
postage prepaid, or one (1) day after mailing if delivered by a national overnight
courier addressed to the LESSOR at the address set forth below for LESSOR such
address as the LESSOR may from time to time advise in writing.
	 
	 	 	 	 
	 

	 	 	 	If to LESSEE
	 
	 	 	 	 
	 

	 	 	 	Osmetech, Inc.
	 

	 	 	 	235 Hembree Park Drive
	 

	 	 	 	Suite 100

 

 

	 	 	 	 	 
	 

	 	 	 	Roswell, GA 30076
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Dow Lohnes & Albertson, PLLC
	 

	 	 	 	One Ravinia Drive, Suite 1600
	 

	 	 	 	Atlanta, Georgia 30346
	 

	 	 	 	Attention: David L Lester, Esq.
	 
	 	 	 	 
	 

	 	 	 	If to LESSOR
	 
	 	 	 	 
	 

	 	 	 	Rockland Realty Trust
	 

	 	 	 	c/o Gallo Electric
	 

	 	 	 	139 Weymouth Street
	 

	 	 	 	Rockland, MA 02360
	 
	 	 	 	 
	 

	 	 	 	With a copy to:
	 
	 	 	 	 
	 

	 	 	 	Donald Kethro, Esq.
	 

	 	 	 	1164 Washington Street
	 

	 	 	 	Hanover, MA 02339
	 
	 	 	 	 
	21.

	 	SURRENDER
	 	The LESSEE shall at the expiration or other termination of this lease remove all
LESSEE’S goods and effects from the leased premises, (including without hereby
limiting the generality of the foregoing, all signs and lettering affixed or
painted by the LESSEE, either inside or outside the leased premises). LESSEE
shall deliver to the LESSOR the leased premises and all keys thereto, and other
fixtures connected therewith and all alterations and additions made to or upon the
leased premiers, in good condition, normal wear and tear and damage by fire or
other casualty only excepted. In the event of the LESSEE’S failure to remove any
of LESSEE’S property from the premises within thirty (30) days after the
expiration or earlier termination of this Lease, LESSOR is hereby authorized,
without liability to LESSEE loss or damage thereto, and at the sole risk of the
LESSEE, to remove and store any of the property at LESSEE’S expense, or to retain
same under LESSOR’S control or to sell at public or private sale, without notice
any or all of the property not so removed and to apply the net proceeds of such
sale to the payment of any stun due hereunder, or to destroy such property.
	 
	 	 	 	 
	22.

	 	BROKERAGE
	 	The Brokers named herein, Vincent Albanese, Paramount Partners, LLC, warrant that
he is duly licensed as such by the

 

 

	 	 	 	 	 
	 

	 	 	 	Commonwealth of Massachusetts, and joins in this agreement and becomes a party hereto, insofar as any provisions of
this agreement expressly apply to him, and to any amendments or modifications of
such provisions to which they agree in writing.
	 
	 	 	 	 
	 

	 	 	 	LESSOR agrees to pay the above named Broker upon the term commencement date a fee
for professional services pursuant to a separate agreement between Broker and
LESSOR.
	 
	 	 	 	 
	 

	 	 	 	LESSOR and LESSEE each respectively hereby agrees to indemnify and hold harmless
the other for any claims, losses, expenses (including reasonable attorneys’ fees),
or damage due Io or arising from any real estate broker asserting a claim for
commissions through such indemnifying party.
	 
	 	 	 	 
	23.

	 	OPTION TO EXTEND
	 	Provided that the LESSEE. is not in default of the terms and conditions of this
lease, the LESSEE may extend this lease term for one (1) additional five-year term
upon the same terms and conditions except for base rent as set forth below by
notifying the landlord in writing at least 180 days prior to the expiration of the
initial lease term, in which event the term of the Lease shall be extended for an
additional five (5) years, which extension term shall he consecutive to, and not
run concurrently with, the Initial five-year term of the Lease.
	 
	 	 	 	 
	24.

	 	OPTION RENT
	 	If LESSEE elects to extend the term this Lease pursuant to the immediately
preceding paragraph, base rent for the first year of such extension term shall be
equal to the lesser of (i) the prevailing market rate or (ii) four percent (4%)
greater than the base rent for the previous year but in no event less than the
base rent of the previous year. Base rent shall increase annually thereafter at
the rate of four percent (4%) effective on the anniversary of the first day of
such extension term. The prevailing market rent shall mean (i) rent in comparable
buildings in the relevant competitive market; (ii) the amount of space and length
of term taken by LESSEE; and (iii) the credit worthiness and quality of the
LESSEE.
	 
	 	 	 	 
	25.

	 	CONDITION OF PREMISES
	 	LESSOR shall deliver the premises in the following condition:
	 
	 	 	 	 
	 

	 	 	 	(a)   Roof
fully repaired and in good condition.

	 
	 	 	 	 
	 

	 	 	 	(b)   Ceiling
and Floor Tiles replaced as reasonably directed by Tenant.

	 
	 	 	 	 
	 

	 	 	 	(c)   All bathrooms and kitchen areas cleaned, and offices and warehouse in broom
clean condition.

 

 

	 	 	 	 	 
	26.

	 	TENANT’S WORK
	 	LESSOR acknowledges that LESSEE will make substantial Improvements to the Premises
related to LESSEE’S operation. LESSOR. shall contribute the cost of the items
specified in Paragraph 27. “Condition” listed below, to assist Tenant with
buildout.
	 
	 	 	 	 
	27.

	 	CONDITION
	 	In addition to any other amounts payable by LESSOR to LESSEE under this Lease,
upon the execution of this Lease, LESSOR shall remit the amount of $15,000.00 to
LESSEE for demolition work to be performed by LESSEE in the leased premises.
	 
	 	 	 	 
	28.

	 	LESSOR CONTRIBUTION
	 	In addition to the amount payable by LESSOR to LESSEE pursuant to Paragraph 27,
above LESSOR shall, upon thirty (30) days written notice by LESSEE, contribute up
to $50,000 toward LESSEE’s build out expenses (“LESSOR’s CONTRIBUTION”), LESSEE
shall pay to LESSOR, as additional rent the amount of LESSOR’s CONTRIBUTION
amortized over the initial 5 year lease term at an 8% interest rate and paid
monthly as additional rent. Maximum LESSOR contribution under this paragraph 28
shall be $50,000. In the event that LESSEE elects to receive all or any portion
of LESSOR’s CONTRIBUTION, LESSOR and LESSEE shall enter into an amendment of this
lease which shall set forth the increased amount of base rental payable by LESSEE
pursuant to the immediately preceding sentence.
	 
	 	 	 	 
	29.

	 	SIGNAGE
	 	The LESSEE shall be entitled to a proportionate share of existing signage. Any
new signage as may be required by LESSEE is subject to the Town of Rockland sign
by-laws and subject to approval by LESSOR, such approval not to be unreasonably
withheld, conditioned or delayed. All signage shall be installed and maintained
at LESSEE’S sole cost and expense.
	 
	 	 	 	 
	30.

	 	RIGHT OF FIRST REFUSAL
	 	LESSEE shall have a right of first refusal for the lease of all or any portion of
the space within that portion of the building commonly known as 136-180 Weymouth
Street (the “ROFR Space”). In the event that LESSOR desires to lease all or any
portion of the ROFR Space, LESSOR shall, within ten (10) days of entering into a
letter of intent or other agreement with any party, provide LESSEE with written
notice thereof together with a copy of such letter of intent or other agreement
(collectively, “LESSOR’s Notice”). LESSEE shall have the right to lease such ROFR
Space upon the same terms and conditions as set forth in LESSOR’s Notice. In the
event that LESSEE fails to notify LESSOR of its Intent to exercise such right

 

 

	 	 	 	 	 
	 

	 	 	 	of first refusal, or otherwise declines to exercise such right of first refusal,
within ten (10) days of LESSEE’s receipt of LESSOR’s Notice, LESSEE shall be
deemed to have waived its right of first refusal and LESSOR may proceed with
leasing the ROFR Space pursuant to the terms of LESSOR’s Notice. In the event
that LESSOR fails to lease the ROFR Space under the terms and conditions set forth
in LESSOR’s Notice within sixty (60) days thereof, then LESSEE’s right of first
refusal shall be reinstated upon the same terms as hereinabove set forth.
	 
	 	 	 	 
	31.

	 	LESSOR DEFAULT
	 	In the event that the LESSOR shall default in the observance or performance of any
of the LESSOR’s covenants, agreements, or obligations under this lease and such
default shall not be corrected within thirty (30) days after LESSOR’s receipt of
written notice thereof, then LESSEE shall have the right, but not the obligation,
to cure such default on behalf of LESSOR and to deduct the reasonable costs
thereof (including attorneys’ fees) from the next due installments of base rent
and additional rent. Without limiting any termination rights of LESSEE set forth
elsewhere in this lease, in the event that LESSOR shell fail to cure any default
of its obligations under this tease within the cure period set forth in the
immediately preceding sentence, and if the majority of the leased premises are
rendered untenantable or access to the leased premises is obstructed, then LESSEE
shall have the right to terminate this lease upon delivery of written notice
thereof to LESSOR, which termination shall be effective upon the date set forth in
such written notice. Notwithstanding the foregoing, in the event that LESSOR’s
failure to cure its default within such thirty (30) day cure period does not
render the majority of the leased premises untenantable or access to the leased
premises obstructed, and in the further event that LESSOR has failed to cure such
default within such thirty (30) day period due to reasons beyond the reasonable
control of LESSOR, then LESSOR shall have an additional thirty (30) days to core
such default prior to LESSEE having the right to cure such default and offset the
cost thereof against base rent and additional rent due under this Lease.
	 
	 	 	 	 
	32.

	 	ZONING MATTERS
	 	LESSOR hereby acknowledges that as of the date of execution of this Lease, LESSEE
has not received a final determination from all governmental or quasi-governmental
agencies have jurisdiction over the leased premises (the “Zoning Agency”) and the
occupancy thereof by LESSEE as to whether a sprinkler or other fire suppression
system shall be required in the leased premises before LESSEE shall be able to
legally occupy and use the leased

 

 

	 	 	 	 	 
	 

	 	 	 	premises for the purposes permitted under this Lease. Notwithstanding any term or provision of this Lease to the contrary, in
the event that the Zoning Agency requires LESSEE to install a sprinkler or other
fire suppression system in the leased premises and the cost thereof exceeds
$20,000, then LESSEE shall have the immediate right to terminate this Lease upon
delivery of written notice thereof to LESSOR, provided that if LESSOR agrees to
reimburse LESSEE for all costs associated with such sprinkler or other fire
suppression system in excess of $20,000, then LESSEE’s termination right pursuant
to this Section 32 shall be rescinded. Notwithstanding the foregoing, upon
completion of the installation of the sprinkler or other fire suppression system
by LESSEE and upon delivery of an invoice for the cost thereof to LESSOR, LESSEE
shall have the right to terminate this Lease upon delivery of written notice
thereof to LESSOR unless LESSOR shall remit the amount on such invoice in excess
of $20,000 to LESSEE within thirty (30) days of LESSOR’S receipt of such invoice.
	 
	 	 	 	 
	33.

	 	ENVIRONMENTAL MATTERS
	 	 LESSOR acknowledges that it shall remain the sole responsible party for compliance
with all applicable state and federal environmental protection legislation and
regulations (hereinafter “Environmental Laws”) for all of LESSOR’s or any prior
owner’s activities on or ownership of the leased premises. LESSOR agrees to
Indemnify, defend and hold LESSEE and its officers, employees and agents harmless
from any claims, judgments, damages, fines, penalties, costs, liabilities
(including sums paid in settlement of claims) or loss including reasonable
attorneys’ fees, consultants’ fees, and experts’ fees, (but excluding any business
interruption losses or expenses), which arise in connection with the presence or
suspected presence of toxic or hazardous substances on or at the leased premises
or in the soil, groundwater or soil vapor on or under the leased premixes, except
to the extent that such toxic or hazardous substances are present as the sole
result of LESSEE’S occupancy and use of the leased premises.
	 
	 	 	 	 
	 

	 	 	 	LESSEE shall comply with all applicable Environment Laws in the use and occupancy
of the leased premises under this Lease, except that LESSOR shall be solely
responsible for compliance with all Environmental Laws relating to the release of
any hazardous wastes on or under the leased premises prior to the date hereof.
LESSEE agrees to indemnify, defend and hold LESSOR and its officers, partners,
employees and agents harmless from any claims, judgments, damages, lines.
penalties, costs, liabilities (including

 

 

	 	 	 	 	 
	 

	 	 	 	sums paid in settlement of claims) or loss, including reasonable attorneys’ fees, consultants’ fees and experts’ fees,
which arise during or after the term of this Lease solely as a result of LESSEE’s
occupancy and use of the leased premises.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	LESSOR:	 	 	 	LESSEE:	 	 
	VINTAGE ROCKLAND REALTY TRUST	 	 	 	OSMETECH, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 
	 	 	 	 	 	 
	 	 
	Date
	 		 	 	 	 	 	Date	 		 	 	 	 
	 

	 	 
 	 
 	 
	 	 	 	 	 	 
 	 
 	 
	 	 
	Witness
	 		 	 	 	 	 	Witness
	 		 	 	 	 
	 

	 	 
 	 
 	 

	 	 	 	 	 	 
 	 
 	 
	 	 

 

 

ADDENDUM A

OPERATING
COSTS

136-160 WEYMOUTH STREET

ROCKLAND, MA

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	2001	 	2002	 	2003
	 	 	 
	Real Estate Taxes:
	 	 	 	 	 	 	 	 	 	 	 	 
	(Fiscal Years 2002, 2003, 2004)
	 	$	42,778.00	 	 	$	43,598.00	 	 	$	43,598.00	 
	Landscaping, Snow-Plowing,
Sanding, Exterior Maintenance:
	 	 	 	 	 	 	 	 	 	 	 	 
	(Fiscal Years 2002, 2003, 2004)
	 	$	12,934.50	 	 	 	20,317.00	 	 	$	22,779.50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance:
	 	$	4,660.00	 	 	$	5,690.00	 	 	$	5,666.00	 
	Water & Sewer:
	 	$	7,025.69	 	 	$	7,031.38	 	 	$	5,343.74	 
	Building Repairs/Improvements:
	 	$	436.00	 	 	$	0	 	 	$	7,500.97	 
	 	 	 
	TOTAL:
	 	$	67,834.19	 	 	$	76,636.38	 	 	$	84,888.21EX-10.2

EXHIBIT 10.2

LEASE

BY AND BETWEEN

Collis P. & Howard Huntington Memorial Hospital Trust,

a Testamentary Charitable Trust

as Landlord

and

Motorola Inc., a Delaware corporation,

as Tenant.

 

 

LEASE

     THIS LEASE (“Lease”), made and entered into this 30th day of June 2004 (the
“Effective Date”), between Collis P. & Howard Huntington Memorial Hospital Trust, a Testamentary
Charitable Trust having an address at 100 W. California Blvd., Pasadena, CA (herein called
“Landlord”) and MOTOROLA, INC., a Delaware corporation, having an office at 1301 East Algonquin
Road, Schaumburg, Illinois 60196 (herein called “Tenant”);

     1.
Premises.

     A. Landlord desires to lease to Tenant, and Tenant desires to lease from Landlord, the real
property located at 801 S. Raymond Avenue, Pasadena, California, together with all of the
improvements situated thereon, including, without limitation, the entire building, and related
improvements (hereinafter the “Building”), which Landlord and Tenant agree consists of 14,264
rentable square feet ) for all purposes in this Lease as shown on the floor plan, Exhibit A,
attached hereto (the real property and the Building are hereinafter referred to collectively as the
“Premises”). Both Tenant and Landlord acknowledge and agree that any change in square feet
resulting from work done by Tenant or Tenant’s contractors shall not affect the square footage for
purposes of calculating monthly rental.

     B. Landlord hereby grants to Tenant, during the Term of this Lease or any extension thereof,
the exclusive use for Tenant’s employees, invitees, visitors and agents all the parking at and for
the Building consisting of the following parking lots: (1) all parking located at 801 S. Raymond,
total lot size 15,990; (2) approximately 14,625 square feet located at 789 S. Raymond Avenue
Pasadena, California; (3) approximately 9,750 square feet located at 811 S. Raymond Pasadena,
California. Such parking shall be free for the initial term or any renewal term.

     C. At no additional cost to Tenant, Landlord hereby leases to Tenant the rooftop of the
Building for the installation, operation, and maintenance of radio transmitting and receiving
equipment, microwave, satellite or antennae communication system devices along with associated
other electronic equipment which may be passive and/or active and mounting structures. Tenant is
hereby granted an easement, for the purpose of running transmission lines, cables, electrical lines
and any other associated equipment from the Premises to the structures on the rooftop. Tenant, at
Tenant’s cost, during the term of this Lease and any extension thereof, shall maintain and repair
the above mentioned equipment on the rooftop as necessary. Upon the expiration or other
termination of this Lease, Tenant shall remove its equipment and cables installed on the rooftop of
the Building or relating to this easement from the rooftop and repair any damage resulting from its
installation and use, reasonable wear and tear excepted. If the location of the rooftop area and
related easement are not shown in an exhibit, the location of these items will be as reasonably
determined by Landlord and Tenant.

     2. Term.

     A. The term of this Lease shall be for a period of three (3) years, which term shall commence
on the earlier of either: (i) Certificate of Occupancy given by the appropriate governmental
authority or (ii) eleven months after date of the last signature on this Lease

 

 

(hereinafter “Commencement Date”) and end three (3) years later; (hereinafter “Term”) said
Term subject to extensions pursuant to agreement of the parties or any option hereinafter set
forth.

     B. As of the Effective Date, Tenant shall have the right to access and occupy the Premises
subject to all of the provisions of this Lease; provided, however, Tenant shall have no obligation
to pay rental or Additional Rent during such period of early occupancy. Said early possession
shall not advance the termination date of this Lease.

     3. Base Rent.

     Subject to Paragraph 19B, Tenant shall pay to Landlord a late charge equal to five percent
(5%) of any installment of monthly Base Rent and any other amount payable under this Lease that is
not paid within Ten (10) days of the due date outlined below in Paragraph 3A, as liquidated damages
to compensate Landlord for costs and inconveniences of special handling and disruption of cash
flow. Notwithstanding anything to the contrary contained in this lease, Landlord agrees to utilize
its best efforts to notify Tenant by 5;00 p.m. on the first business day following the first day of
the month of any Base Rent payment not yet received for that month. Said notice shall be sent by
facsimile at (847) 435-3918, attention: Real Estate and Development, with a copy to Lease
Administration (401)764-0103. Landlord’s failure to provide said notice, however, shall in no way
excuse Tenant’s obligation to pay a late charge in accordance with this Paragraph 3.

     A. Base Rent — Initial Term.

     During the initial Term of the Lease, Tenant will pay rent to Landlord in advance and without
demand at the office of the Landlord or at such other place as Landlord from time to time may
notify Tenant in writing monthly base rent, (hereinafter “Base Rent”) payable on the first day of
each calendar month pursuant to the following schedule after the Commencement Date:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Lease Year	 	Months	 	Annual Base Rent	 	Monthly Base Rent
	1
	 	  1—12	 	 	 	$  9.60 /SF	 	$	11,411.20	 
	2
	 	13—24	 	 	 	$  9.89 /SF	 	$	11,755.91	 
	3
	 	25—36	 	 	 	$10.19 /SF	 	$	12,112.51	 

with appropriate proration of Base Rent if the initial Term or any portion of the Term hereof
should commence on a date other than the first day of a calendar month.

     For purposes of this Lease, the term “Lease Year” means the one year period beginning on the
Commencement Date and ending 364 days thereafter and the anniversary thereof each year.

     Both Tenant and Landlord acknowledge and agree that any change in square feet resulting from
work done by Tenant or Tenant’s contractors shall not affect the square footage for purposes of
calculating monthly rental for the Term or any Renewal Term.

     B. Base Rent — First Renewal Term.

     In the event Tenant exercises its option to extend the term of this Lease for the First
Renewal Term as provided for herein, Tenant will pay Base Rent to Landlord in advance at the office
of Landlord or at such other place as Landlord from time to time may notify Tenant in

-3-

 

writing on the first day of each calendar month, however Base Rent shall escalate three
percent (3%) annually beginning on the first day of the First Renewal Term.

     Base Rent — Second Renewal Term.

     In the event Tenant exercises its option to extend the term of this Lease for the Second
Renewal Term as provided for herein, Tenant will pay Base Rent to Landlord in advance at the office
of Landlord or at such other place as Landlord from time to time may notify Tenant in writing on
the first day of each calendar month, however Base Rent shall escalate three percent (3%) annually
beginning on the first day of the Second Renewal Term.

     Base Rent — Third Renewal Term.

     In the event Tenant exercises its option to extend the term of this Lease for the Third
Renewal Term as provided for herein, Tenant will pay Base Rent to Landlord in advance at the office
of Landlord or at such other place as Landlord from time to time may notify Tenant in writing on
the first day of each calendar month, however Base Rent shall escalate three percent (3%) annually
beginning on the first day of the Third Renewal Term.

All the other terms and conditions of this Lease shall apply during the any Renewal Term (except
for this Section 3.B.).

     C. Additional Rent.

     In addition to the Base Rent required to be paid by Tenant under this Section 3, Tenant shall
pay to Landlord as additional rent all other amounts required to be paid by Tenant under Section 50
below, which amounts constitute costs for real estate taxes, insurance. All amounts payable to
Landlord under this Lease constitute rent and shall be payable without notice, demand, deduction or
offset (unless specifically provided otherwise) to such person and at such place as Landlord may
from time to time designate by written notice to Tenant.

     4. Condition of Premises.

     A. Building Condition.

     Tenant agrees that as of the Commencement Date the improvements to the real property done by
Tenant or Tenant contractors will be properly constructed and will comply with all applicable laws,
statutes, orders, ordinances, rules and regulations including without limitation, compliance with
Title III for the Americans with Disabilities Act (42 U.S.C. SEC. 12101 et. Seq. (“A.D.A.”) as now
or hereafter amended, and all regulations now or hereafter promulgated pursuant thereto, and all
costs and expenses associated with A.D.A. compliance, provided, however, that Tenant shall not be
responsible for the cost of any renovation(s) to comply with ADA changes which become effective
after the Commencement Date unless the need for such renovation(s) is attributable to tenant’s use
of the Premises.

     B. Tenant improvements.

     With respect to Tenant Improvements, the parties agree as follows:

-4-

 

	 	(1)	 	Landlord and Tenant acknowledge and agree that Tenant is hereby authorized to
construct and install at the Premises those improvements (hereinafter the “Tenant
Improvements”) described in Exhibit B attached hereto and incorporated herein. Tenant
shall, at its sole expense (but subject to reimbursement from the Landlord Capital
Contribution described below), construct the Tenant Improvements in accordance with the
specifications as described in Exhibit C. The plans and specifications for the Tenant
Improvements shall be subject to Landlord’s approval, not to be unreasonably withheld.
	 
	 	(2)	 	Tenant agrees that it will apply for any required building permits, and upon,
issuance promptly and diligently pursue construction of the Tenant improvements.
	 
	 	(3)	 	All Tenant Improvements, except removable paneling and wall fixtures and
furniture and trade fixtures (and further excluding all signs, and goods and materials
used in the Tenant’s business) shall become a part of the realty and belong to Landlord
and shall not have to be removed by Tenant upon lease expiration or termination.
	 
	 	(4)	 	Notwithstanding anything to the contrary herein this Lease, Tenant in its sole
discretion reserves the right to either remove from the Premises or leave at the
Premises any of Tenant’s lab, manufacturing or testing equipment either as part of the
Tenant Improvements or as any changes, alterations or additions to the Premises.
	 
	 	(5)	 	Prior to making any Tenant Improvements, Tenant shall submit written plans and
drawings respecting same to Landlord and Landlord shall approve or disapprove same
within fifteen (15) days after receipt thereof, and if Landlord fails to disapprove
such plans and drawings by notice in writing to Tenant within such time, they shall be
deemed approved.

     C. Landlord Capital Contribution.

          (i) Landlord has agreed to provide Tenant with a capital contribution of up to a maximum of
One Million and 00/100 Dollars ($1,000,000.00) (hereinafter the “Landlord Capital Contribution”).
Landlord will not charge a construction supervision fee, construction fee, or administrative or
overhead fee in connection with the Tenant Improvements. Tenant shall have the right to utilize
all or any portion of the Landlord Capital Contribution for costs attributable to Shell and Core
items as set forth in Exhibit D. Parking lot improvements on the 789 and 811 lots may also be
funded by the Landlord Capital Contribution.

          (ii) The Landlord Capital Contribution will be paid to Tenant within thirty (30) days after
Landlord approves the Tenant Improvements, which such approval shall not be unreasonably withheld,
conditioned or delayed and Landlord shall approve or disapprove same within fifteen (15) days after
receipt thereof, and if Landlord fails to disapprove by notice in writing to Tenant within such
time, they shall be deemed approved. If the Tenant Improvements cost more than the Landlord
Capital Contribution, Tenant shall pay for such overage. If Landlord does not pay Tenant within
thirty (30) days Landlord shall be in default of this Lease and Tenant

-5-

 

shall have the right to deduct or setoff the amount of the Landlord Capital Contribution from
any rent or additional rent to become due to Landlord until the Landlord Capital Contribution is
fully recovered by Tenant.

          (iii) Tenant shall have the right to use contractors and subcontractors of its own selection.
Tenant reserves the right to reject any and all proposals and to award the work in its sole
discretion as it deems fit. All Tenant contractors shall be licensed and insured which will need
to be evidenced prior to commencement of construction.

          (iv) Landlord will not charge a construction supervision, administrative or overhead fee in
connection with the Tenant Improvements. Tenant will not be charged for the use of elevators,
hosts, access to loading docks, security costs during construction of Tenant Improvements or in
connection with Tenant’s move into the Premises.

          (v) Landlord shall be entitled to earn an annual rate of interest of eight percent (8%) on the
Landlord Capital Contribution over the Initial Term or any subsequent renewal terms.

          (vi) Landlord acknowledges and agrees that Tenant expects to utilize the Landlord Capital
Contribution in approximately June or July of 2004 and therefore Landlord should expect to pay
Tenant the Landlord Capital Contribution amount pursuant to the terms of this Lease around said
time frame.

     D. Recapture of Tenant Improvement

     In the event the construction costs agreed upon between the parties for the Shell and Core
improvements as defined in Exhibit D exceed the Landlord Capital Contribution, then the difference
between the Landlord Capital Contribution and the total money spent for Shell and Core improvement
pursuant to Exhibit D, subject to a cap of $300,000.00, shall be added to the Tenant Improvement
category in Exhibit D and shall be known as “Recapture of Tenant Improvements”. This amount shall
be added to the recapture calculation below.

     In the event that Tenant does not renew the lease at the end of year three, or after year six,
the Landlord shall pay the Tenant as a recapture fee, the following:

     Below is an example only using the preliminary numbers for the Tenant Improvement as shown on
Exhibit D. The final numbers will be based on the actual dollars spent by Tenant for Tenant
Improvements:

End of Year Three —  $618,579 x 66% = $408,262*

End of Year Six      —  $618,579 x 33% = $204,131*

 

			
	*	 	The amount above does not include potential Recapture of Tenant Improvements dollars from the
Shell and Core category on Exhibit D. The Recapture of Tenant Improvement dollars is subject to a
maximum of Three Hundred Thousand and 00/100 DOLLARS ($300,000.00) which amount shall be added to
the actual dollars spent for Tenant Improvements pursuant to Exhibit D.

-6-

 

     5. Use.

     Tenant shall have the right to use the Premises for any lawful purpose permitted by applicable
zoning ordinances. Tenant in its use and occupancy of the Premises shall not commit waste, nor
overload the floors or structure, nor subject the Premises to any use which would tend to damage
any portion thereof, provided such tendency to cause damage is reasonably foreseeable.

     6. Intentionally Deleted.

     7. Compliance.

     Tenant shall, during the Term of this Lease conform the use Tenant makes of the Premises to
all applicable laws, statutes, orders, ordinances, rules and regulations of all federal, state or
political subdivisions having jurisdiction over the Premises, now in force or that may be enacted
hereafter, provided that the provisions of this Paragraph 7 shall not require the Tenant to
rebuild, repair or alter the Premises and/or the improvements forming a part of the Premises to
make said Premises and/or improvements comply with any such laws, statutes, orders, ordinances,
rules or regulations, and provided that if Tenant is unable to use said Premises for the purposes
specified in Paragraph 5 hereof, Tenant shall have the right to terminate this Lease immediately
upon written notice to Landlord.

     8. No Waste or Damage.

     Tenant shall not commit any waste upon or do any damage to the Premises. Tenant shall not use
or permit the use of the Premises for any unlawful purpose. Tenant shall not permit any rubbish,
refuse or garbage to accumulate or create a fire hazard in or about the Premises. In connection
with its occupancy of the Premises, Tenant shall not use the Premises in violation of any laws,
ordinances, regulations or orders of any duly constituted authorities of the city, county, state
and federal government.

     9. Changes, Alterations and Additions.

     No material changes, alterations or additions shall be made to the Premises by Tenant without
the prior approval of Landlord, which approval shall not be unreasonably withheld. For purposes of
this Section 9, a “material” change, alteration or addition shall be a change that requires the
expenditure of a sum in excess of Two Hundred Thousand and 00/100 Dollars ($200,000.00) in the
aggregate or Fifty Thousand and 00/100 Dollars ($50,000.00) in any one year. Prior to making any
such changes, alterations or additions, Tenant shall submit written plans and drawings respecting
same to Landlord and Landlord shall approve or disapprove same within ten (10) days after receipt
thereof, and if Landlord fails to disapprove such plans and drawings by notice in writing to Tenant
within such time, they shall be deemed approved. All changes, alterations and additions shall
comply with the applicable City, County and State laws, statutes, orders, ordinances, rules and
regulations. Landlord agrees, if necessary, to join in any applications to governmental
authorities for such permits as may be required to do the work contemplated in this Paragraph 9.
Any permanent additions to or alterations of the Premises which cannot be removed without material
damage to the Premises, except removable paneling and wall fixtures and furniture and trade
fixtures (and further excluding all signs, and goods and materials used in the Tenant’s business)
shall become a part of the realty and belong to Landlord unless otherwise

-7-

 

agreed by Landlord and Tenant. Tenant’s removable paneling and wall fixtures and furniture,
trade fixtures, lab equipment, signs, goods and materials used in Tenant’s business shall at all
times remain personal property and may be removed from time to time by Tenant or other occupants of
the Premises, provided, however, that Tenant shall be responsible for the cost of repair of any
physical injury to the Premises caused by the removal of any such property, but not for any
diminution in value of the Premises caused by the absence of the property removed or by any
necessity for replacing such property. Notwithstanding anything to the contrary herein this Lease,
Tenant in its sole discretion reserves the right to either remove from the Premises or leave at the
Premises any of Tenant’s lab, manufacturing or testing equipment and any systems or equipment
supporting infrastructure or related infrastructure either as part of the Tenant Improvements or as
any changes, alterations or additions to the Premises.

     10. Ingress and Egress.

     The Landlord grants to Tenant the nonexclusive right to ingress and egress to the Premises
over (a) the existing streets and highways adjoining the Premises and (b) any and all portions of
the property and the Building of which the Premises are a part. Tenant shall have full and
unimpaired access to the Premises at all times except as provided in Paragraphs 12, 16 and 17. The
Landlord will not interrupt or disturb any entrances, and will use all reasonable means to prevent
any interruption, disturbance or deprivation by any third party.

     11. Abandonment.

     Tenant shall endeavor to continuously occupy the Premises and not vacate or abandon the
Premises at any time during said lease Term or any extension thereof for more than thirty (30)
consecutive days unless required to do so by duly authorized legal authority or other cause beyond
Tenant’s reasonable control. Notwithstanding the foregoing, in the event Tenant fails to occupy
the Premises for period of thirty (30) consecutive days or longer but is still making all rent
payments to Landlord as required under this Lease, Tenant’s failure to occupy the Premises shall
not be deemed to be an abandonment or vacation of the Premises or a default under the Lease. In
the event Tenant abandons or vacates the Premises for more than six (6) consecutive months and does
not intend to occupy the Premises again, Landlord reserves the right, but shall not be obligated to
recapture the Premises provided that Landlord gives Tenant written notice of its intent to
recapture and Tenant has at least thirty (30) days to notify Landlord of its intentions regarding
the Premises. For purposes of this Section 11, if Tenant submits in writing its intention to
“re-occupy” the Premises, then Landlord’s right to re-capture shall be void and of no force and
effect. Nothing herein shall be deemed a waiver of Tenant’s rights pursuant to California law or
statutes regarding this Paragraph 11.

     12. Repairs.

     Landlord, at Landlord’s expense and not as an operating cost or Operating Expense (as defined
in Section 50 herein) of the Building, during the Term of this Lease and any extension thereof,
shall make all repairs and replacements to all structural portions of the Building, including, but
not limited to, the exterior walls, roof and foundations, existing pipes and conduits, and utility
installations and all repairs and replacements necessary to put and maintain the exterior of the
Building but subject to normal wear and tear), including all improvements now or hereafter

-8-

 

thereon, and all appurtenances thereto (including all existing sewer and sewer connections,
water and gas pipes and connections, electrical wires and connections) in a safe and tenantable
condition and in good order and repair, except for those repairs made necessary by the negligent
acts of the Tenant or its employees. In addition at Landlord’s cost, Landlord shall make all
repairs to the interior of the Premises which may be of a structural nature or which are caused by
structural failures or movement, repairs to the interior of the Premises made necessary by leakage
of the roof, provided, however, that Landlord shall not be obligated to make repairs for any
structural damage caused by Tenant, its employees, invitees or agents.

     Tenant, during the Term of this Lease and any extension thereof, agrees to keep in good order
and repair all interior portions of the Premises (including overhead doors and the electric
operators thereof, except such repairs as under this Lease Landlord is required to make and except
repairs which are the obligation of Landlord under Paragraph 16 of this Lease. Tenant shall also
provide ordinary maintenance for the plumbing and light fixtures and shall replace any glass which
may be damaged or broken with glass of the same quality. Tenant agrees to surrender the Premises
in good order and repair, reasonable wear and tear and ordinary deterioration, and loss, damage or
destruction from any cause and/or the taking of, damage to, or reduction of the size of, the
Premises by eminent domain, all excepted. If Landlord does not make repairs as required hereunder,
Tenant may, but is not required to, make such repairs or perform such other obligations and pay the
cost and shall have the right to immediately sue Landlord therefore.

     13. Interior Mechanical Equipment (HVAC System).

     A. During the Term of this Lease and any extension thereof, Tenant at its expense, shall
provide proper, periodic and normal maintenance and inspection for such heating and air
conditioning equipment as exists upon the Premises at the commencement of this Lease. If this
equipment requires repairs or replacement of parts, or both, of a major or substantial nature
(i.e., in excess of proper, periodic and normal maintenance and inspection), these repairs or
replacements, or both, shall be made by Landlord at its expense, unless Tenant’s misuse or abuse of
same necessitates the repair or replacement, or both. Examples of “parts of a major or substantial
nature” are compressors, boilers and fan units. If any heating and air conditioning equipment is
installed as part of Landlord’s Work, Landlord shall transfer to Tenant all warranties received
from the manufacturers, dealers and/or installers of such heating and air conditioning and other
mechanical equipment, and agrees to assist Tenant, to a reasonable degree, in enforcing any such
warranty, except enforcement shall be at Tenant’s sole expense.

     B. Tenant will be solely responsible for the operation and maintenance of any additional HVAC
units it installs in Tenant’s lab(s) throughout the Lease Term and any renewal terms it exercises.

     14. Utilities and Services.

     Tenant shall pay for all water, heat, gas, fuel, electricity, telephone service and all other
services in the nature of utility services supplied to the Premises for use by Tenant as well as
services supplied to Tenant in the operation of its business, together with any taxes thereon.

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     15. Inspection.

     Provided that Tenant at all times accompanies Landlord, Tenant will allow Landlord access to
the Premises at reasonable times during normal working hours for the purpose of examining or
exhibiting the same or making repairs Landlord is required to make, subject to Section 56 below.
Unless Tenant has given notice to Landlord to extend the Term of this Lease, Landlord may place on
the Premises at any time within one hundred eighty (180) days prior to the expiration of the lease
Term or any extension thereof, if extended, notices of “For Sale”, or “For Rent”.

     16. Damage or Destruction of Premises.

     A. In the event of minor damage (less than fifty percent (50%) to the Premises by fire or any
other cause which renders the Premises untenantable in part but Tenant is able in its sole judgment
to conduct its business therein, and Tenant continues to occupy them in part, the rent shall be
apportioned and reduced from the date the damage occurs in the proportion that the unoccupied
portion of the Premises bears to the entire Premises until the damage has been repaired.

     B. In the event, of substantial damage (fifty percent (50%) or more) (including destruction)
to the Premises by fire or any other cause which renders the Premises untenantable in whole or in
such part that Tenant in its sole judgment deems it impracticable to conduct its business therein,
the rent shall wholly abate and be apportioned from the date the damage occurs until the damage has
been repaired.

     C. In the event of either minor or substantial damage, unless this Lease is terminated as
hereafter provided in Paragraph 16.D. hereof, Landlord shall commence within thirty (30) days
after the date the damage occurs (or within thirty (30) days after receipt of such notice is given)
to repair the Premises to the condition in which they were immediately prior to such damage, and
Landlord shall complete such repair with due diligence and dispatch. If the damage is net repaired
within a reasonable time or in any event within sixty (60) days from the date the damage occurs in
the case of minor damage and one hundred twenty (120) days from the date the damage occurs in the
case of substantial damage, Tenant shall have the right to terminate this Lease by giving Landlord
written notice (served no later than thirty (30) days after such right to cancel and terminate
arises) of termination.

     D. In the event the Premises are damaged at any time during the last twelve (12) months of the
initial lease Term or at any time during the last twelve (12) months of any extension term by fire
or any other cause to the extent of fifty percent (50%) or more of the replacement value thereof as
of the date such damage occurs, this Lease, except as provided in Paragraph 16.E. hereof, may be
terminated at the election of either Landlord or Tenant by giving notice in writing of such
election to the other party within ten (10) days from the date the damage occurs. Upon such
termination, any unearned rent or other payments paid in advance beyond the date of damage shall
immediately be refunded to Tenant.

     E. If Landlord elects to terminate this Lease under Paragraph 16.D. hereof, Tenant may by
written notice to Landlord exercise its option to renew under Paragraph 27 hereof within

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twenty (20) days after receipt of Landlord’s notice of termination, and in such event,
Landlord’s notice of termination shall be void, and Landlord shall repair the Premises as herein
provided that damage was an insured loss,

     17. Condemnation.

     A. If the whole or any substantial part (fifty percent (50%) or more) of the Premises shall be
taken or condemned by any competent authority for any public use or purpose, the Term of this Lease
shall end upon, and not before, the date when the possession of the part so taken shall actually be
required for such use or purpose. Current rent shall thereupon be apportioned as of the date of
such termination.

     B. If only an insubstantial part (less than fifty percent (50%) of the Premises shall be taken
or condemned, and Tenant is able, in its sole judgment, to continue to operate its business in the
Premises, and such taking or condemnation does not give Tenant the right to terminate this Lease,
this Lease shall continue in full force and effect, and the rental due thereunder shall abate
proportionately to the extent that Tenant is deprived of usable area either in the Premises or
otherwise, and as of the date of such deprivation. If Tenant is not able, in its sole judgment, to
continue normal business operation, Tenant may terminate this Lease immediately upon written notice
to Landlord. In the event this Lease is not terminated under this Paragraph, Landlord shall, at
Landlord’s sole cost and expense, restore the remaining portion of the Premises to the extent
necessary to render them reasonably suitable for the purposes for which they were leased, and shall
make all repairs to the Premises to the extent necessary to constitute the Premises a complete
architectural unit.

     C. In any such case, whether this Lease is terminated or not, each party shall be entitled to
claim and receive an award of damages suffered by it by reason of such taking. Landlord shall be
entitled to receive and retain the entire award or consideration for the affected lands and
improvements and Tenant shall not have or advance any claims against Landlord for the value of its
property or its leasehold estate or the unexpired term of this Lease or for costs of removal or
relocation or business interruption expense or any other damages arising out of the taking or
purchase. Nothing herein shall give Landlord any interest in, or preclude Tenant from seeking and
recovering on its own account from the condemning authority, any award of compensation attributable
to the taking or purchase of Tenant’s chattels or trade fixtures or attributable to Tenant’s
relocation expense or loss of goodwill provided that any such separate claim by Tenant shall not
reduce or adversely affect the amount of Landlord’s award. If any such award made or compensation
paid to Tenant specifically includes an award or amount for Landlord, Tenant shall promptly account
therefor to Landlord.

     18. Landlord’s Liability.

     Landlord shall not be liable for damage to property of Tenant in the Premises or for injury to
person unless such damage or injury is caused by (A) Landlord’s failure to make repairs or perform
any obligations which Landlord is obligated to make under this Lease or (B) is caused by the fault
or negligence of Landlord, Landlord’s agents, employees, contractors, subcontractors, invitees,
licensees or other authorized representatives.

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     19. Default and Remedies.

     A. Default  by Tenant. The occurrence of any one or more of the following
events shall constitute an event of default by Tenant:

          (i) The failure by Tenant to make any payment of rent or any other payment required to be made
by Tenant hereunder, as and when due, where such failure shall continue for a period of ten (10)
days after the due date; and

          (ii) The failure by Tenant to observe or perform any of the covenants, conditions or
provisions of this Lease where such failure shall continue for a period of thirty (30) days after
receipt by Tenant of written notice thereof from Landlord; provided, however, that if the nature of
Tenant’s default is such that it cannot be cured solely by payment of money and that more than
thirty (30) days may be reasonably required for such cure, then Tenant shall not be deemed to be in
default if Tenant shall commence such cure within such thirty (30) day period and shall thereafter
diligently prosecute such cure to completion.

     B. Landlord’s Remedies. If Tenant fails to perform any of its duties or obligations
within the time periods set forth herein, after the expiration of any and all applicable notice and
cure periods set forth in this Lease and as required by law, then without further written notice
Landlord may, at its option, perform such duty or obligation on Tenant’s behalf, including but not
limited to, the obtaining of reasonably required bonds, insurance policies, or governmental
licenses, permits or approvals. The reasonable costs and expenses of any such performance by
Landlord shall be due and payable by Tenant upon receipt of invoice therefor. Upon any event of
default by Tenant, Landlord may, with such further notice or demand as may be required by
applicable law, and without limiting Landlord in the exercise of any right or remedy which Landlord
may have by reason of such default:

          (i) Terminate Tenant’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Tenant shall immediately surrender possession to Landlord; or

          (ii) From time to time and without terminating this Lease, relet the Premises or any part
thereof for such term or terms (which may be for a term extending beyond the term of this Lease) at
such rental or rentals and upon such other terms and conditions as Landlord deems reasonable. Upon
any such reletting, Tenant shall be immediately liable to pay to Landlord the commercially
reasonable cost and expense of such reletting, the cost of any and all alterations and repairs
reasonably deemed necessary by Landlord to effect such reletting, and the amount, if any, by which
the rent and other amounts due from Tenant hereunder for the remainder of the term of this Lease
(but not for any option term not yet exercised) exceeds the amount agreed to be paid as rent for
the Premises to be paid by the new tenant for such period of reletting. If Landlord elects not to
reenter, this Lease shall continue for so long as Landlord does not terminate Tenant’s right to
possession, and Landlord may enforce all of its rights and remedies under this Lease, including the
right to recover the rent and other amounts due from Tenant hereunder as they come due. Landlord
shall be obligated to mitigate its damages hereunder.

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     Without limiting the generality of the foregoing, upon any event of default by Tenant,
Landlord may, subject to compliance with all statutory notice and cure periods, pursue any other
remedy now or hereafter available under the laws or judicial decisions of the state wherein the
Premises are located, including, without limitation, the remedies set forth in California Civil
Code Section 1951.2(a)(3).

     Tenant hereby acknowledges that late payment by Tenant of rent will cause Landlord to incur
costs not contemplated by this Lease, the exact amount of which will be extremely difficult to
ascertain. Such costs include, but are not limited to, processing and accounting charges, and the
late charges which may be imposed upon Landlord by any lender. Accordingly, if any rent or other
monetary obligation owing shall not be received by Landlord within ten ( 10) days of its due date,
then, without any requirement for further notice to Tenant, Tenant shall pay to Landlord a one-time
late charge equal to five(5%) percent of the past due amount. The parties hereby agree that such
late charge represents a fair and reasonable estimate of the costs Landlord will incur by reason of
such late payment. Acceptance of such late charge by Landlord shall in no event constitute a
wavier of Tenant’s default or breach with respect to such overdue amount, nor prevent the exercise
of any of the other rights and remedies granted hereunder. In the event that a late charge is
payable hereunder, whether or not collected, for three (3) consecutive installments of rent, then
notwithstanding any provision of this Lease to the contrary, rent shall, at Landlord’s option,
become due and payable quarterly in advance.

     As used herein, the term “Lease Year” shall mean the twelve (12) month period commencing on
the Commencement Date and each anniversary thereof.

     C. Breach by Landlord. Landlord shall not be deemed in breach of this Lease unless
Landlord fails to perform an obligation required to be performed by Landlord within ten (10) days
after receipt by Landlord, and any lender whose name and address shall have been furnished to
Tenant in writing for such purpose, of written notice specifying wherein such obligation of
Landlord has not been performed; provided, however, that if the nature of Landlord’s obligation is
such that more than ten (10) days are reasonably required for its performance, then Landlord shall
not be in breach if performance is commenced within such ten (10) day period and thereafter
diligently pursued to completion.

     D. Tenant’s Remedies. Tenant shall have all rights and remedies in connection with
Landlord’s breach of this Lease as are available at law or in equity. Additionally, in the event
that neither Landlord nor its lender commences the cure of said breach within the applicable cure
period set forth above, or if having commenced said cure they do not diligently pursue it to
completion, then Tenant may, in addition to any other remedies provided in this Lease, at law or in
equity (including the right to sue for damages, an injunction or specific performance) elect to
cure said breach at Landlord’s expense and pay such expense under protest, reserving Tenant’s right
to reimbursement from Landlord. Tenant shall document the cost of said cure and supply said
documentation to Landlord. If neither Landlord nor its lender reimburses Tenant for such cost
within ten (10) days from receiving written notice thereof from Tenant, then Tenant shall have the
right but not the obligation to perform such obligation on Landlord’s behalf, and the cost and
expense of such cure shall be due and payable by Landlord upon invoice and reasonable documentation
therefor.

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     E. Consequential Damages Waiver. Landlord and Tenant agree that in no event shall
either party be liable for indirect, incidental, special or consequential damages arising out of or
related to any act or omission by the other or breach by the other of any representation, warranty
or covenant contained in this Lease (collectively, the “Damages”), and each hereby releases and
forever discharges the other from any and all Damages whether at law or equity. The foregoing
release shall constitute a complete defense to any Damages released pursuant to this paragraph.
Nothing in this paragraph shall be construed as or admissible in any legal action or proceeding as
an admission by Landlord or Tenant that any Damages may be recovered which are within the scope of
those released hereby. Landlord and Tenant acknowledge the facts which may be discovered or
learned by either in the future may be other than the different from the facts in that regard now
known or believed by either party to be true. Landlord and Tenant hereby expressly accept and
assume the risk of facts being discovered to be different than currently believed and agree that
the provisions of this paragraph shall be in all respects effective and not subject to termination,
recession or modification by reason of any such change in facts. Landlord and Tenant hereby
expressly waive any and all rights under Section 1542 of the California Civil Code, which provides
as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release, which if known
by him must have materially effected the settlement with the debtor.”

By placing their initials in the spaces hereinafter provide, the parties specifically acknowledge
and agree to the waiver and release provisions of this paragraph.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	
	 	
	 	 
	 

	 	Landlord’s Initials
	 	Tenant’s Initials	 	 

     F. Dispute Resolution. In the event of a dispute between the parties which requires a
party hereto to seek redress through an action at law or in equity (or to seek redress through a
form of Alternative Dispute Resolution) the losing party shall pay, upon demand, all of the
prevailing party’s costs, charges and expenses, including reasonable attorneys’ fees, incurred by
such prevailing party in connection with the resolution of such dispute; provided, however,
attorneys’ fees shall be due and payable only if the prevailing party is required to file suit due
to default by the losing party. For purposes of this Paragraph, the term “losing party” shall mean
the party which obtains substantially less relief than originally sought by such party in the legal
or equitable action (or Alternative Dispute Resolution forum) and the term “prevailing party” shall
mean the party which obtained substantially the relief sought by such party in the legal or
equitable action (or Alternative Dispute Resolution forum).

     20. Bankruptcy.

     In the event the estate created hereby shall be taken in execution or by other process of law,
or if Tenant shall be adjudicated insolvent or bankrupt pursuant to the provisions of any state or
federal insolvency or bankruptcy law, or if a receiver or trustee of the property of Tenant shall
be appointed by reason of Tenant’s insolvency or inability to pay its debts, or if any assignment
shall be made of Tenant’s property for the benefit of creditors, then and in any of such events,
Landlord

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may terminate this Lease by written notice to Tenant; provided, however, if the order of the
court creating any of such disabilities shall not be final by reason of pendency of such
proceeding, or appeal from such order, then Landlord shall not have the right to terminate this
Lease so long as Tenant performs its obligations hereunder.

     21. Indemnification.

     Tenant shall indemnify and hold Landlord harmless from all loss, damage, cost, expense or
liability (including reasonable attorneys’ fees, expenses and disbursements) incurred by Landlord
arising out of or in connection with any injury to, or death of, any person, or damage to, or
destruction of, property occurring in, on, or about the Premises, the Building in which the
Premises are located and/or the property, and which injury, death, damage or destruction is caused
by the acts or omissions of Tenant or Tenant’s employees, agents, contractors, subcontractors,
invitees, licensees or other authorized representatives; except that Landlord shall be liable to
Tenant for all loss, damage, cost, expense or liability (including reasonable attorneys’ fees,
expenses and disbursements) incurred by Tenant arising out of or in connection with any injury to,
or death of any person, or damage to, or destruction of, property occurring in, on, or about the
Premises, the Building in which the Premises are located, and the property, and which injury,
death, damage or destruction is caused by the acts or omissions of Landlord or Landlord’s
employees, agents, contractors, subcontractors, invitees, licensees or other authorized
representatives, and shall indemnify and hold Tenant harmless therefor. A party’s obligation under
this Paragraph to indemnify and hold the other party harmless shall be limited to the sum that
exceeds the amount of insurance proceeds, if any, received by the party being indemnified.

     22. Insurance.

     A. Landlord shall keep in effect, during the Term of this Lease:

	 	(1)	 	Insurance against damage to the Premises and the Building by fire and other
risks now or hereafter embraced in extended coverage, in amounts sufficient to prevent
Landlord from becoming a co-insurer, but in no event less than eighty (80%) percent of
the Premises’ then replacement value (exclusive of the cost of excavations, foundations
and footings);
	 
	 	(2)	 	Insurance against such other hazards as, from time to time, are then commonly
insured against for Premises similarly situated (due regard being given to the
Premises’ height, type, construction and use), in the amount of at least Five Million
Dollars ($5,000,000) in any one occurrence upon or in connection with the use or
occupancy of the Premises resulting in bodily injury or death.

     B. Tenant shall, at its expense, keep in effect during the Term of this Lease or any extension
thereof, the following insurance in standard form policies, with an insurance company authorized to
do business in the State in which the Premises are situated.

	 	(1)	 	Commercial general liability insurance in the amount of at least Five Million
Dollars ($5,000,000) in any one occurrence upon or in connection with the use or
occupancy of the Premises resulting in bodily injury or death.

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	 	(2)	 	Comprehensive property damage insurance covering liability or damage in any one
occurrence occurring upon or in connection with the use or occupancy of the Premises to
all property in at least the sum of Five Million Dollars ($5,000,000).
	 
	 	(3)	 	All risk contents coverage (or Tenant may act as a self-insurer with respect to
such all risk insurance) on Tenant’s personal property, equipment, furnishings,
fixtures and other chattels located or to be located in the Premises.
	 
	 	(4)	 	The required statutory amount of worker’s compensation insurance.

     C. All policies of insurance required to be maintained by Landlord and Tenant pursuant to this
Lease, shall name the other party as an additional insured as their respective interests may appear
(and if requested by Landlord shall bear appropriate endorsements to protect Landlord’s mortgagee).

     D. The insurance required to be carried by Tenant shall be effective as of the Effective Date.
Tenant shall furnish, upon Landlord’s written request, a certificate or certificates of insurance
evidencing the existence of the required coverage.

     E. The parties release each other, and their respective authorized representatives, from any
claims for damage to any person or to the Premises and the Building and other improvements in which
the Premises are located, and to the fixtures, personal property, Tenant’s improvements, and
alterations of either Landlord or Tenant in .or on the Premises and the Building and other
improvements in which the Premises are located that are caused by or result from risks insured
against under any insurance policies carried by the parties and in force at the time of any such
damage.

     Each party shall cause each insurance policy obtained by it to provide that the insurance
company waives all right of recovery by way of subrogation against either party in connection with
any damage covered by any policy. Neither party shall be liable to the other for any damage caused
by fire or any of the risks insured against under any insurance policy required by this Lease.

     23. Mechanic’s Liens.

     The Tenant will not permit any mechanic’s or materialmen’s or other liens to stand against the
Premises for any labor or material furnished the Tenant in connection with work of any character
performed on said Premises by or at the direction of the Tenant; and the Landlord will not permit
any such liens for work or material furnished the Landlord to stand against such Premises.
However, the Landlord and the Tenant shall respectively have the right to contest the validity or
amount of any such lien, but upon the final determination of such questions shall immediately pay
any adverse judgment rendered with all proper costs and charges and shall have the lien released at
the contestant’s own expense. If Landlord or Tenant desires to contest any such lien, then prior
to commencing such contest it will furnish the other party with a bond, if requested, to secure the
payment of such obligation.

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     24. Assignment or Subletting.

     A. If Tenant requests Landlord’s consent to an assignment of the Lease or subletting of all or
a portion of the Premises, it shall submit to Landlord, in writing, (i) the name and legal
composition of the proposed assignee or subtenant, (ii) the use to which the proposed assignee or
subtenant intends to put the Premises, (iii) the terms and conditions of the proposed assignment or
sublease and of any related transaction between Tenant and the proposed assignee or subtenant; (iv)
such publicly disclosed information as Landlord may reasonably request to explain the transaction;
and (v) reimbursement for all reasonable out of pocket costs incurred by Landlord, including actual
attorneys’ fees, in connection with evaluating the request and preparing any related documentation.

     B. The Landlord’s consent to any such proposed assignment or subletting shall not be
unreasonably withheld or delayed. Landlord shall be considered to have reasonably denied its
consent to a proposed assignment or sublease if:

          (i) Tenant has not given Landlord fifteen (15) days’ prior written notice of such assignment
or sublease, which notice shall include all information and documentation reasonably required to
satisfy the above conditions;

          (ii) Tenant is in default beyond any applicable cure period at the time of the assignment or
sublease (but at such time as any default is cured, the assignment or sublease may proceed); and

          (iii) The assignee or sublessee fails to furnish Landlord at least ten (10) days prior to the
effective date of the assignment or sublease, a written assignment instrument in which assignee or
sublessee agrees to assume and be bound by all of the conditions, obligations and agreements of
Tenant contained in this Lease.

     C. Provided that the consent requirement of this Section 24 shall be ineffective and no
consent shall be required in the case of an assignment or sublease by Tenant to a corporation which
is the parent or subsidiary of or is controlled by Tenant, or to an entity that acquires all or
substantially all of Tenant’s or a group or division of Tenant’s assets or to a corporation,
partnership or limited liability company resulting from any reorganization, merger, spin-off or
divestiture to which Tenant or its parent or any of its subsidiaries or any corporation or limited
liability company controlled by it is a party.

     25. Delays.

     In the event that either party hereto shall be delayed or hindered in or prevented from the
performance of any of their or its respective provisions anywhere herein contained, by reason of
(i) the destruction, in whole or in part, of any building or improvement forming a part of the
entire Premises, or (ii) strikes, or (iii) lockouts, or (iv) labor troubles, or (v) war, whether
declared or undeclared, or (vi) riot, or (vii) Act of God, or (viii) embargoes, or (ix) delays in
transportation, or (x) inability to procure materials and/or labor, or (xi) failure of power, or
(xii) restrictive governmental laws or regulations, whether valid or not, or (xiii) insurrection,
or (xiv) act or acts of terrorism, or (xv) any other reason other than financial, beyond the
reasonable control of such party, and not the fault of the party so delayed or hindered in or
prevented from performing work

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or doing acts otherwise required under this Lease, then performance of such work or doing of
such acts shall be excused for the period of the delay, and the period for the performance of such
work or doing such acts shall be extended for a period equivalent to the period of such delay;
provided, however, that the provisions of this Paragraph shall not operate so as to excuse or
release Tenant from the prompt payment of rent or other sums required to be paid by Tenant to
Landlord or to other payees anywhere hereunder.

     26. Run With The Land.

     The covenants and conditions herein contained shall be construed as running with the land,
apply to and bind the parties hereto, their respective heirs, representatives, executors,
administrators, successors and assigns of all of the parties hereto. All parties hereto agree that
they shall be jointly and severally liable hereunder for their respective obligations.

     27. Option to Renew.

     Tenant is hereby granted three (3) options to renew this Lease on the following terms and
conditions:

     A. At the time of the exercise of an option to renew and at the time of the commencement of
the said renewal, the Tenant shall not be in material default in accordance with the terms and
provisions of this Lease, and shall be in possession of the Premises pursuant to this Lease.

     B. Notice of the exercise of each option shall be sent to the Landlord, in writing, no less
than six (6) months before the expiration of the then current Term of this Lease.

     C. The first renewal term (hereinafter “First Renewal Term”) shall be for the term of three
(3) years to commence at the expiration of the initial Term of this Lease, and all of the terms and
conditions of this Lease (except that Base Rent payable during the First Renewal Term shall be as
specified in Section 3B above) shall apply during the First Renewal Term.

     D. The second renewal term (hereinafter the “Second Renewal Term”) shall be for the term of
three (3) years to commence at the expiration of the First Renewal Term of this Lease, and all of
the terms and conditions of this Lease (except that Base Rent payable during the Second Renewal
Term shall be as specified in Section 3B above) shall apply during shall apply during the Second
Renewal Term.

     E. The third renewal term (hereinafter the “Third Renewal Term”) shall be for the term of
three (3) years to commence at the expiration of the Second Renewal Term of this Lease, and all of
the terms and conditions of this Lease (except that Base Rent payable during the Third Renewal Term
shall be as specified in Section 3B above) shall apply during shall apply during the Third Renewal
Term.

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     28. Right of First Offer. Right of First Refusal and Recording of Lease.

     Provided that Tenant is not in default beyond any applicable cure period, Tenant shall have
the right but not the obligation to acquire fee simple title to the Premises (the “Right of First
Offer”), on the following terms and conditions:

     If Landlord intends to sell its fee interest in all of the following properties: 789 S.
Raymond Avenue, 801 South Raymond Avenue, and 811 S. Raymond, Avenue during the Term including any
Renewal Term, then Landlord shall first offer the same to Tenant in writing (the “Offer”) prior to
offering or marketing the same for sale to any third party. The Offer shall include all pertinent
business terms and conditions, including without limitation the purchase price, seller financing,
if any, the due diligence period (which shall be not less than 45 days), the escrow period (which
shall be not less than 60 days), and all other pertinent economic terms. Tenant shall respond in
writing to the Offer within thirty (30) days following receipt thereof. If Tenant elects to accept
the Offer, Tenant and Landlord shall promptly undertake in good faith to negotiate and execute a
purchase and sale agreement reflecting the terms set forth in the Offer, and shall work in good
faith to consummate the subject purchase and sale transaction. If Tenant declines to accept the
Offer, then Landlord shall be free to offer its leasehold interest in the Premises for sale to a
third party on terms substantially identical to those contained in the Offer. If Landlord elects
to offer for sale its leasehold interest in the Premises on terms substantially different from
those set forth in the Offer (i.e. a decrease of more than five percent (5%) in the purchase
price, an increase of more than ten percent (10%) in the due diligence or escrow periods, an offer
of seller financing, etc), then Landlord shall be obligated to offer its leasehold interest in the
Premises to Tenant according to the terms set forth above. This paragraph shall also apply to any
unsolicited offers received by Landlord.

     Tenant shall also have a Right of First Refusal to lease 815 S. Raymond Avenue, Pasadena,
California (the “815 space”). This property is subject to a lease to Pasadena Tournament of Roses
Association which expires January 31, 2007 but the Lessee has an option to extend for an additional
five (5) years as well as certain early termination rights. Upon the expiration or early
termination of said lease, if the Landlord receives an offer to lease all or any of 815 space which
the Landlord is ready and willing to accept from any person other than the Tenant the Landlord
shall give written notice thereof to the Tenant, together with a complete copy of the offer to
lease, and the Tenant shall for a period of thirty (30) days following the receipt of same have the
right of first refusal to meet the same and to enter into an agreement to lease the 815 space
thereof as is referred to in the Landlord’s notice at the same rate and on the same terms and
conditions as are contained in the said offer upon which the Landlord is prepared to lease the
same. Failing such action on the part of the Tenant, the Landlord shall be free to accept the
offer and complete the lease on the same terms and conditions as offered to Tenant. If Landlord
does not complete the lease with the other party on substantially the same terms and conditions
(subject to possible minor modifications), then Tenant’s Right of First refusal shall vest again
and the Landlord shall follow the same process as set forth herein.

     In no event does the Tenant’s Right of First Offer preclude the Landlord from selling the
Property however any sale shall be subject to the terms and conditions of this Lease.

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     29. Subordination.

     This Lease shall be subject and subordinated at all times to the liens of any mortgages or
deeds of trust in any amount or amounts whatsoever now existing or hereafter encumbering the
Premises, without the necessity of having further instruments executed by Tenant to effect such
subordination. Notwithstanding the foregoing, Tenant covenants and agrees to execute and deliver
upon demand, such further instruments evidencing such subordination of this Lease to such liens of
mortgages or deeds of trust as may be reasonably requested by Landlord. So long as Tenant shall
pay the rent reserved and comply with, abide by and discharge the terms, conditions, covenants and
obligations on its part, to be kept and performed herein and shall attorn to any successor in
title, notwithstanding the foregoing, the peaceable possession of the Tenant in and to the Premises
for the Term of this Lease, shall not be disturbed, in the event of the foreclosure of any such
mortgage or deed of trust, by the purchaser at such foreclosure sale or such purchaser’s successor
in title.

     30. Holdover.

     Any holding over after the expiration of the Term of this Lease or any extension thereof,
shall be construed to be a tenancy from month-to-month the first three (3) months at One Hundred
Ten Percent (110%) of monthly rental as paid during the last month of the original Term for of any
holdover or any renewal term hereof, and shall otherwise be on the terms and conditions herein
specified so far as applicable. If Tenant holds over beyond three (3) months, the monthly rental
shall be One Hundred Fifty Percent (150%) of monthly rental as paid during the last month of the
original Term or any renewal term. Landlord agrees that the payment of the holdover rent shall
serve as its exclusive remedy for Tenant’s holdover and Landlord agrees to waive all other remedies
at law or in equity.

     31. Generator.

     Tenant, at its sole cost and expense, shall have the option in its sole discretion to install
an emergency generator within the Premises or in a mutually agreed area outside the Building.
Tenant shall be allowed use of existing mechanical areas, at no additional expense to Tenant to
install said generator.

     32. Intentionally Deleted.

     33. Environmental.

     Hazardous Substances.

     A. Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease
shall mean any product, substance, or waste whose presence use, manufacture, disposal,
transportation, or release, either by itself or in combination with other materials expected to be
an the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority; or (iii) a
basis for potential liability of Landlord to any governmental agency or third party under any
applicable statute or common law theory. Hazardous Substances shall include, but not be limited
to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions

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thereof. Tenant shall not engage in any activity in or on the Premises which constitutes a
Reportable Use of Hazardous Substances without the express prior written consent of Landlord and
timely compliance (at Tenant’s expense) with all Applicable Requirements. “Applicable
Requirements” means any and all applicable building codes, laws (whether constitutional, statutory
or common law), covenants or restrictions of record, regulations, ordinances and governmental
directives and/or orders. “Reportable Use” shall mean (i) the installation or use of any above or
below ground storage tank, (ii) the generation, possession, storage, use transportation, or
disposal of a Hazardous Substance that requires a permit from, or with respect to which a report,
notice registration or business plan is required to be filled with, any governmental authority,
and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any
Applicable Requirements requires that a notice be given to persons, entering or occupying the
Premises or neighboring properties. Notwithstanding the forgoing, Tenant may use any ordinary and
customary materials reasonably required to be used in the normal course of the Agreed Use, so long
as such use is in compliance with all Applicable Requirements, and does not expose the Premises or
neighboring property to any meaningful risk of contamination or damage or expose Landlord to any
liability therefore. “Agreed Use” means the development, manufacturing, testing and distribution
of medical products. In addition, Landlord may condition its consent to any Reportable Use upon
receiving such additional assurances as Landlord reasonably deems necessary to protect itself, the
public, the Premises and/or the environment against damage, contamination, injury and/or liability,
including, but not limited to, the installation (and removal on or before Lease expiration or
termination) of protective modifications (such as concrete encasements) and/or increasing the
Security Deposit.

     B. Duty to Inform Landlord. If Tenant knows, or has reasonable cause to believe, that a
Hazardous Substance has come to be located in, on, under or about the Premises, other than as
previously consented to by Landlord, Lessee shall immediately give written notice of such fact to
Landlord, and provide Landlord with a copy of any report, notice, claim or other documentation
which it has concerning the presence of such Hazardous Substance.

     C. Tenant Remediation. Tenant shall not cause or permit any Hazardous Substance to be spilled
or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer
system) except as approved in writing in advance by Landlord and in accordance with Applicable
Requirements. Tenant shall promptly, at Tenant’s expense, comply with all Applicable Requirements
and take all investigatory and/or remedial action reasonably required, whether or not formally
ordered, for the cleanup of any contamination including any associated with the maintenance,
security and/or monitoring, that was caused or materially contributed to by Tenant, or
contamination that resulted from a Hazardous Substance brought onto the Premises during the term of
this Lease, by or for Tenant or by any third party; provided, however, that Tenant shall have no
obligation or liability for and Hazardous Substance on the Premises prior to the Start Date or
contamination caused by the gross negligence or willful misconduct of Landlord, its agents or
employees.

     D. Tenant Indemnification. Tenant shall indemnify, defend, reimburse and hold Landlord, its
agents, employees, lenders and ground lessor, if any, harmless from and against any and all loss of
rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and
consultants’ fees, including the cost of remediation arising out of or involving any Hazardous
Substance brought onto the Premises by or for Tenant, or any third party but only to the

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extent caused by or arising out of Tenant’s acts or omissions on or about the Premises, the
building or the project and, in no event shall Tenant be liable or responsible for environmental
liabilities arising from or relate to environmental conditions existing as of the Start Date. In
addition, Tenant shall have no liability under this Lease with respect to underground migration of
any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by
Tenant. Tenant’s obligations shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or suffered by Tenant,
(provided, however, that Tenant shall have no liability under this Lease with respect to
underground migration of any Hazardous Substance under the Premises from adjacent properties not
caused or contributed to by Tenant), and the cost of investigation, removal, remediation,
restoration and/or abatement related to such contamination. This obligation shall survive the
expiration or termination of this Lease. No termination, cancellation or release agreement entered
into by Landlord and Tenant shall release Tenant from the obligations under this Lease with respect
to Hazardous Substances, unless specifically so agreed by Landlord in writing at the time of such
agreement.

     E. Landlord Indemnification. Landlord and its successors and assigns shall indemnify, defend,
reimburse and hold Tenant, its employees and lenders, harmless from and against any and all
damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees
including the cost of remediation, arising out of or involving Hazardous Substances on the Premises
prior to the Start Date or which are caused by the gross negligence or willful misconduct of
Landlord, its agents or employees. Landlord’s obligations, as and when required by the Applicable
Requirements, shall include, but not be limited to, the effects of any contamination or injury to
person, property or the environment and the cost of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiration or termination of this Lease.

     F. Investigations and Remediations. Landlord shall retain the responsibility and pay for any
investigations or remediation measures required by governmental entities having jurisdiction with
respect to the existence of Hazardous Substances on the Premises prior to the Start Date, unless
such remediation measure is required as a result of Tenant’s use (including “Tenant Improvements”,
as defined in paragraph 4.b above) of the Premises, in which event Tenant shall be responsible for
such payment for such remedial measures, but only to the extent that they relate to, arise out of
or are caused by Tenant’s use or improvements. If Tenant takes remedial measures necessitated by
the existence of Hazardous Substances on the Premises prior to the Start Date, other than as such
remedial measures may relate to, arise out of or be caused by Tenant’s use or improvements (in
which case Tenant shall be solely responsible), Landlord shall reimburse Tenant for such expenses
only if and to the extent that (i) Tenant gives Landlord written notice thereof, (ii) Landlord is
obligated under this lease to investigate and remediate such conditions and (iii) Landlord fails,
within a reasonable time, to undertake any required investigation and remedial activities. Tenant
shall cooperate fully in any such activities at the request of Landlord, including allowing
Landlord and Landlord’s agents to have reasonable access to the Premises at reasonable times in
order to carry out Landlord’s investigative and remedial responsibilities.

     G. Termination Option. A “Hazardous Substance Condition” shall mean the occurrence or
discovery of a condition involving the presence of or a contamination by, a Hazardous Substance in,
on or under the Premises which requires repair, remediation or

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restoration. If a Hazardous Substance Condition occurs during the term of this Lease the
following will apply:

          (i) if Tenant is legally responsible for all investigation and remedial activities, then
Tenant shall make the investigation and remediation thereof as required by the Applicable
Requirements and this Lease shall continue in full force and effect,

          (ii) if Landlord is legally responsible for all investigation and remedial activities, Tenant
may, at Tenants option, either (a) terminate the Lease in the event the Premises are not able to be
occupied for Tenant’s intended use for a period in excess of ninety days, by providing written
notice of Landlord of Tenant’s intent to terminate the lease or (b) provide written notice to
Landlord of Tenant’s intent that the Lease continue in full force and effect. In either case,
Landlord shall investigate and remediate such Hazardous Substance Condition, if required, as soon
as reasonably possible at Landlord’s expense. If Tenant’s intended use unreasonably interferes
with Landlord’s ability to perform or have performed remedial activities in accordance with
Applicable Requirements, Landlord may give written notice to Tenant, of Landlord’s desire to
terminate this Lease as of the earliest of (I) the date one year following the date of such notice
or (II) if, in order to comply with Applicable Requirements, the date Landlord reasonably requires
that the Lease be terminated sooner, in which case Landlord shall provide Tenant with as much
advance notice of said date as is reasonably possible. In the event Landlord elects to give a
termination notice, Tenant may, within thirty (30) days thereafter, give written notice to Landlord
of Tenant’s commitment to modify its use and occupancy to allow for remediation of such Hazardous
Substance Condition. In such event, this Lease shall continue in full force and effect, without
offset, reduction or abatement of rent and Landlord shall continue to make such remediation at its
expense. If Tenant does not give such notice this Lease shall terminate as of one year from the
date of Landlord’s notice of termination or earlier if reasonably required by Landlord as set forth
above.

          (iii) If the remedial activities relate to both Tenant’s use and improvement and occurrences
prior to the Start Date, Landlord and Tenant agree to negotiate in good faith to determine how to
perform the remedial activities in accordance with Applicable Requirements and how to pay expenses
related to such activities.

     H. Landlord shall respond to Tenant’s environmental questionnaire and shall allow Tenant to
conduct a full Phase I investigation of the property. To the extent that Landlord has an existing
on-privileged Phase I or Phase II Environmental Report relating the Premises, Landlord shall
provide a copy of the same to Tenant prior to Lease execution. Although Landlord has no actual
knowledge of any inaccuracies, Landlord makes no representations or warranties with respect to any
statements, comments, recommendations or opinions contained in any such reports.

     I. Tenant’s responsibilities hereunder are expressly contingent upon obtaining Tenant’s
environmental review and approval of the property and upon their approval of its Phase I
Environmental Report and any Reports provided by Landlord. Said Reports and investigation shall be
at Tenant’s sole cost and expense and shall be completed prior to execution of this Lease.
Tenant’s execution of this Lease shall signify said approval.

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     34. Brokers.

     The parties agree that Binswanger CBB and Binswanger Realty Advisors Group and Morlin
Management Corporation (“Brokers”) are the sole brokers who brought about this Lease. Tenant
represents and warrants that Tenant did not negotiate with respect to the leasing of the Premises
through any other broker and that no other broker was instrumental in bringing about this lease.
Tenant shall indemnify Landlord against any and all claims of any other brokers with whom Tenant
has had any dealings, and shall hold Landlord harmless from all losses and expenses in connection
therewith, including reasonable legal expenses. Landlord represents and warrants that Landlord has
not dealt with any other real estate broker in connection with the leasing of the Premises, and
Landlord agrees to indemnify and hold Tenant harmless from all losses and expenses in connection
with the claims of any real estate broker claiming by, under or through Landlord, including
reasonable legal expenses. Landlord shall pay the commission of the Brokers pursuant to the terms
of a separate agreement.

     35. Notices.

     All notices, approvals or requests in connection with this Lease shall be sent by certified
mail, or via overnight carrier with delivery charges prepaid or with delivery not conditioned upon
payment of charges, except notices concerning repairs and replacements which may be given orally or
by any other means which might reasonably be expected to give the other party notice; provided,
however, that no notice other than by certified mail or overnight carrier shall constitute a notice
of default authorizing cancellation of this Lease. Notices to the Landlord may be addressed to the
Landlord or the person or party to whom the rent was last paid at the address to which such payment
was sent in accordance with Paragraph 3 of this Lease. Notices to the Tenant shall be addressed to
Motorola, Inc., Real Estate & Development Department, 1303 East Algonquin Road, 7th
Floor Schaumburg, Illinois 60196, Attention: Real Estate Manger, Fax (847) 435-3918; with
copy to: Motorola, Inc. c/o Fred Pickering, Manager Lease Administration P.O. Box 19065, Johnston,
Rhode Island 02919-0065 Fax (401)764-0103. Either party may at any time designate by written
notice to the other a change of address.

     36. Waiver.

     Failure or delay on the part of Landlord or Tenant to exercise any right, remedy, power or
privilege hereunder shall not operate as a waiver thereof. A waiver, to be effective, must be in
writing and must be signed by the party making the waiver. A written waiver of a default shall not
operate as a waiver of any other default or of the same type of default on a future occasion.

     37. Amendments.

     No revision of this Lease shall be valid unless made in writing and signed by duly authorized
representatives of both parties.

     38. Quiet Enjoyment.

     If Tenant performs the terms of this Lease, Landlord will warrant and defend Tenant in the
quiet and peaceful enjoyment and possession of the Premises during the Term hereof and any
extension without interruption by Landlord or any person claiming under Landlord.

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     39. Conveyance by Landlord.

     Landlord covenants that no conveyance, assignment by or other change of interest of Landlord
in the Premises hereby demised, whether recorded or unrecorded, shall be binding upon Tenant unless
and until Tenant shall be actually notified thereof by certified mail or overnight carrier, and any
such purchaser, assignee or other party in interest agrees to affirm and assume all of the duties
and obligations of the Landlord under this Lease, and in no event shall such conveyance, assignment
or other change of interest affect this Lease or the renewal option, expansion or termination
rights hereunder.

     40. Short Form Lease and Recording.

     The parties will at any time at the request of either one, promptly execute duplicate
originals of an instrument, in recordable form, which will constitute a short form of lease setting
forth a description of the Premises, the Term of this Lease and any other portions hereof,
excepting the rental provisions, as either party may request.

     41. Construction of Language.

     The terms Lease, lease agreement or agreement shall be inclusive of each other, and include
renewals, extensions or modifications of the Lease. Words of any gender used in this Lease shall
be held to include any other gender, and words in the singular shall be held to include the plural
and the plural to include the singular, when the sense requires. Paragraph headings and titles are
not a part of the Lease and shall have no effect upon the construction or interpretation of any
part hereof.

     42. Marginal Headings.

     The headings in this Lease are used only for convenience in finding the subject matters, and
are not to be taken as part of this Lease, or to be used in determining the intent of the parties.

     43. Entire Agreement.

     This Lease constitutes the final expression of the agreement of the parties; it is intended as
a complete and exclusive statement of their agreement, and it supersedes all prior and concurrent
promises, representations, negotiations, discussions and agreements that may have been made with
respect to the subject matter hereof.

     44. Severability.

     If any provision of this Lease, or the application thereof to any person or circumstance,
shall be held invalid or unenforceable by any court of competent jurisdiction, the remainder of
this Lease or the application of such provisions to persons or circumstances, other than those as
to which it is held invalid or unenforceable, shall not be affected thereby.

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     45. Estoppel Certificate.

     Tenant shall, from time to time upon not less than fifteen (15) business days’ prior written
request by Landlord, deliver to Landlord a statement in writing stating upon Tenant’s knowledge and
belief: (a) that this Lease is unmodified and in full force and effect or, that there have been
modifications, that the Lease as modified is in full force and effect; (b) the dates to which Rent
and other charges have been paid; (c) that Landlord is not in default under any provision of this
Lease or, if in default, a detailed description thereof. Failure to deliver the certificate within
fifteen (15) business days shall be conclusive upon Tenant, for the benefit of Landlord and its
successors, that this Lease is in full force and effect and has not been modified except as may be
represented to Landlord.

     46. Signs.

     Tenant shall not exhibit, inscribe, paint or affix any sign on the exterior of the Building or
the property or in any window of the Premises without Landlord’s prior written consent. In the
event of Tenant’s uncured default as set forth above, Landlord, in addition to its other remedies
available hereunder, may remove such signs without any liability to Tenant and Tenant shall
reimburse Landlord for the cost of such removal immediately upon demand therefor.

     47. Intentionally Deleted.

     48. Rules and Regulations.

     Tenant agrees for itself, its employees, agents, clients, customers, invitees and guests, to
comply fully with reasonable rules and regulations and with such reasonable modifications thereof
and additions thereto as Landlord may make for the Property or Building.

     Tenant shall be responsible for the observance of all of the foregoing rules and regulations
by Tenant’s employees, agents, clients, customers, invitees and guests. Landlord and Tenant agree
that Landlord’s remedy for violation of any of the foregoing rules and regulations by Tenant (or
any person or entity under Tenant’s authority or control) shall be a payment by Tenant to Landlord
an amount equal to the reasonably substantiated actual damages suffered or incurred by Landlord on
account of such violation.

     49. Measurement of Premises to Determine Rentable Area.

     The rentable area of the Premises has been determined by the Landlord, and may be confirmed by
the Tenant, or its representative, at any time during the Lease Term according to the following
standards of measurement:

     If the Premises are located in an industrial building, the area will be measured in accordance
with the American National Standards Institute/BOMA Methods of Determining Areas in Industrial
Buildings.

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     50. Additional Rent — Operating Expenses and Real Estate Taxes.

     For purposes of this Paragraph and this Lease, the term “Tenant’s Percentage Share” shall mean
a percentage which is equal to the number of the rentable square footage of the Premises divided by
the total number of rentable square footage contained in the Building of which the Premises are a
part. The parties hereby agree that: (1) the Premises consist of 14,264 rentable square
feet of area; (2) the Building of which the Premises are a part consists of a total of 14,264
rentable square feet of area; and (3) the Tenant’s Percentage Share is one hundred percent
(100%) in reference to the Building of which the Premises are a part. Landlord and Tenant each
acknowledge that the Base Rent specified in Paragraph 3 of the Lease does not provide for Operating
Expenses and Real Estate Taxes which may hereafter pertain to the Building or the property of which
the Premises are a part. Tenant shall pay as Additional Rent its proportionate share of Real
Estate Taxes and Operating Expenses as follows:

     A. Real Estate Taxes. Tenant shall pay to Landlord, (or directly to the taxing
authority if there is a separate real estate tax bill for the Premises), Tenant’s Percentage Share
of the Real Estate Taxes assessed against the land, parking lots and improvements all of which this
Lease incorporates. The additional rent imposed hereby shall be paid by Tenant to Landlord upon
submission by Landlord of a real estate tax bill and an invoice therefor. A copy of the original
receipted tax bill submitted by Landlord to Tenant shall be sufficient evidence of the amount of
taxes assessed against the teal property to which such bill relates. The calculation of Tenant’s
Percentage Share of Real Estate Taxes shall be submitted with the above-referenced tax bill.
Should the taxing authorities include in such Real Estate Taxes the value of any improvements made
by Tenant, or include machinery, equipment, fixtures, inventory or other personal property or
assets of Tenant, the Tenant shall also pay the entire taxes for such items.

     B. Operating Expenses. Landlord and Tenant acknowledge that this Lease shall be
construed to be a “modified triple net lease” and that except as expressly set forth in Section 12
of this Lease, Landlord shall receive the Monthly Base Rent free and clear of any and all other
impositions, taxes, liens, charges or expenses of any nature whatsoever in connection with the
ownership and operation of the Leased Premises (not the operation of the owning entity itself). In
addition to the Monthly Base Rent, except as expressly set forth in Section 12 of this Lease,
Tenant shall pay to the parties respectively entitled thereto all impositions (including any taxes
on rentals paid to Landlord), insurance premiums, operating charges, maintenance charges,
construction costs, and any other charges, costs and expenses which arise or may be contemplated
under any provisions of this Lease as being Tenant’s responsibility and cost, during the Term. The
specific responsibility of Landlord and Tenant for repairs, replacements and maintenance is more
fully described in Section 12 below. Tenant shall pay to Landlord, Tenant’s Percentage Share of
the Operating Expenses pertaining to the land and improvements of which the Promises form a part.
For purposes of this Lease, the term “Operating Expenses” shall include only the costs attributable
to the following categories or items: 1) parking lot lighting; 2) landscaping and lawn care; and
3) building insurance. The additional rent imposed hereby shall be paid by Tenant to Landlord upon
submission by Landlord of a detailed invoice and backup Landlord shall not bill or charge Tenant
for any fees, accounting fee, audit fees appraisal fees, refinancing costs or any other similar
type of fee other than as listed above.

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     Notwithstanding anything to the contrary, the following shall be excluded from “Operating
Expenses”:

          (i) Any and all administrative, maintenance personnel and management salaries are specifically
excluded from operating expenses.

          (ii) Expenses or amortization for structural repairs and replacements made to the Premises or
Building. Amortization of capital improvements or replacements beyond the Term of the Lease. A
capital improvement must have a useful life of

          (iii) Costs incurred in connection with the original construction of the Building or in
connection with any change in the Building.

          (iv) Costs of repairing, replacing or otherwise correcting defects (including latent defects)
in or inadequacies of (but not the costs of ordinary and customary repair for normal wear and tear)
the initial design or construction of the Building or the costs of repairing, replacing or
correcting defects in the initial design or construction of any tenant improvements.

          (v) Costs, fines, interest, penalties, legal fees or costs of litigation incurred due to late
payments of taxes, utility bills or any other bills and any other costs incurred by Landlord’s
failure to make such payments when due.

          (vi) Costs incurred for any items to the extent covered by a manufacturer’s, vendor or
contractor’s warranty.

          (vii) Costs arising from Landlord’s charitable, political or religious contributions.

          (viii) Costs for sculpture paintings or other objects of art.

          (ix) Costs arising from earthquake insurance.

          (x) Rentals and any other related expenses incurred in leasing air conditioning
systems, elevators, or other equipment ordinarily considered of a capital nature.

          (xi) Accumulation or collection of reserves for capital improvements or replacements
anticipated to be made to the Building or Premises.

Any other expenses which, in accordance with generally accepted accounting principles, consistently
applied would not be treated as Operating Expenses by landlords of comparable buildings in the
surrounding Pasadena, California area.

     If Landlord desires Tenant to pay its proportionate share of real estate taxes and operating
expenses on a monthly basis, at the beginning of each calendar year, Landlord shall supply to
Tenant an estimate, certified by an authorized agent or officer of Landlord, setting forth in
detail Landlord’s reasonable estimate of Operating Expenses of the Building for such calendar year,
and Tenant’s Percentage Share of same. The additional rent imposed hereby shall be paid by Tenant
to Landlord in monthly installments, in advance, as the Operating Expenses component of the total

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monthly rent. Each such monthly installment of Operating Expenses shall be equal to
one-twelfth (1/12) of Tenant’s Percentage Share of the Landlord’s reasonable estimate of the
Operating Expenses for the Building for such calendar year. Within one hundred twenty (120) days
after the end of each calendar year Landlord shall provide to Tenant a detailed statement,
certified by an authorized agent or officer of Landlord, setting forth in reasonable detail the
actual Operating Expenses for the preceding calendar year. Such statement shall also include a
calculation or reconciliation of estimated Operating Expenses to actual Operating Expenses and of
any overpayment or underpayment made by Tenant to Landlord with respect to the Operating Expenses
for such preceding calendar year. In the event Tenant underpaid Landlord for Tenant’s Percentage
Share of Operating Expenses for such preceding calendar year, Tenant shall pay the amount of such
underpayment to Landlord within thirty (30) days of Tenant’s receipt of Landlord’s certified
statement. In the event Tenant overpaid Landlord for Tenant’s Percentage Share of Operating
Expenses of such year, Landlord shall credit Tenant an amount equal to such overpayment amount
against Tenant’s future monthly Operating Expense obligations until such credit is exhausted. (If
such overpayment by Tenant is made in the last year of the Lease Term, Landlord shall remit to
Tenant the amount of the overpayment due hereunder within thirty (30) days of the expiration or
termination date of the Lease.) If a dispute arises between Landlord and Tenant as to whether any
item or items shall be properly included in such statement, the matter shall be determined in
accordance with Paragraph 32 of the Lease, and the determination of such matter as therein provided
shall be final and binding upon Landlord and Tenant.

     Tenant, or its representative shall have the right to examine and to copy Landlord’s books and
records showing Operating Expenses and Real Estate Taxes at Tenant’s sole cost and expense. Such
examination will be upon reasonable prior notice to Landlord and during normal business hours at
any time within six (6) months following the furnishing by Landlord to Tenant of Landlord’s annual
statement reconciling estimated operating expenses to actual operating expenses. The books and
records that Tenant may examine include, but are not limited to, accounting records, vendor
contracts, payroll records, management agreements and supporting invoices and detail for all items.
If an error is discovered that has also been made in previous Landlord statements, Tenant may
correct that same error in the previous statements and receive credit therefor. Mathematical
errors or errors in computation may be corrected at any time during the Term of the Lease.

     51. Tenant Expense Waiver.

     Notwithstanding the provisions of Paragraph 50 above, it is understood and agreed that in the
event Landlord fails to submit to Tenant an itemized bill for any amounts which may be due
thereunder within one hundred eighty (180) days after the expiration of the Lease year to which
such expenses, charges and/or escalations are applicable, Tenant shall not be liable for payment of
any such additional expenses, charges and/or escalations, it being expressly agreed by the parties
that Landlord shall be deemed to have waived its right to collect such expenses, charges and/or
escalations from Tenant for such Lease year.

     52. Intentionally Deleted.

     53. Intentionally Deleted.

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     54. No Party To Be Deemed Drafter.

     Landlord and Tenant have both had the opportunity to have counsel examine this Lease and to
propose changes to clarify any ambiguities. Accordingly, in any interpretation of this Lease, an
ambiguity shall not be resolved by interpreting the Lease against the drafter. The language of
this Lease shall be interpreted according to the fair meaning and not for or against either party.

     55. No Intended Third Party Beneficiary.

     Landlord and Tenant may each, separately, deal with other persons in connection with the
Premises or with other matters that may also relate to or be the subject of this Lease. Landlord
and Tenant do not intend to make any such third person with whom each of them may deal an intended
third party beneficiary under this Lease. There is no third person who is an intended third party
beneficiary under this Lease. No incidental beneficiary (whatever relationship such person may
have with Landlord or Tenant) shall have any right to bring an action or suit, or to assert any
claim against Landlord or Tenant under this Lease.

     56. Confidentiality and Nondisclosure.

     As Landlord and Landlord’s agents will have reasonable access rights to the Premises, Landlord
will come into contact with Tenant’s business information. Landlord agrees that any information
which it gathers, observes or comes into contact with pursuant to this Lease about Tenant
operations and business practices, shall be kept confidential and not disclosed to any third party
without the prior written consent of Tenant except as required by law. Landlord agrees that it
will not in any manner use its knowledge of Tenant’s business for the benefit of any other person
or company or divulge to others information or data concerning Tenant’s business affairs, including
the names of customers, names of employees, marketing strategies or terms or particulars of
Tenant’s business. The Landlord further agrees not to use or disclose to any party any
information, systems, ideas, processes, practices, methods of operation or manufacture observed at
Tenant’s Premises. Landlord agrees to inform all of its representatives or agents that will access
the Tenant Premises of this confidentiality requirement. In addition, anyone who enters the Tenant
Premises must comply with the instructions of Tenant security personnel on areas of the Premises
that require escorted access and sign the Tenant security logs as visitors. In the event Landlord
enters the Premises during non-business hours or in the event of an emergency, Landlord will notify
Tenant in writing within one (1) business day of its entry and the reason therefor.

     57. Miscellaneous.

     A. Conduit Connection.

     During the Term (and any extensions or renewals thereof), Tenant shall be permitted to
construct, install, maintain and repair conduit connections to the Premises over, across and
through the Premises, the Building, and the common areas in and to the Building for high speed
telecommunication transmission lines (and technological evolutions thereof) and fiber optics
(individually and collectively, the “Conduit Connection”) subject to compliance with all applicable
laws, ordinances, rules and regulations. Tenant shall advise and consult with Landlord as to the
exact locations of such Conduit Connection at the Building and Landlord agrees to

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cooperate with Tenant to facilitate, permit and otherwise obtain such Conduit Connection for
the Premises, provided that Landlord shall not be obligated to incur and expense in connection
therewith. Upon termination of this Lease, Tenant shall not be obligated to remove any
improvements, utilities, conduits cable or other items of equipment installed or constructed in
connection with such Conduit Connection.

     B. Termination of Exist 811 S. Raymond Lease.

     Tenant’s obligations hereunder shall be contingent upon the termination of that certain
Parking Lease dated June 3, 2003 between Collis P. and Howard Huntington Memorial Hospital Trust
and Clinical Micro Sensors, Inc. relating to the parking lot at 811 South Raymond, Pasadena. Said
termination agreement is attached hereto as Exhibit E.

     C. Modification of Existing 757 S. Raymond Lease.

     Tenant’s obligations hereunder shall be contingent upon the modification of that certain
Sublease dated November 10, 1999, between Southern California Clinical Laboratories, L.L.C., and
So. Cal Clini Lab, a California corporation, as Sublessor and Clinical Microsensors, Inc., a
California corporation, as Sublessee, for the property located at 757 South Raymond Avenue,
Pasadena, so that as modified, the 757 South Raymond Avenue Lease shall become co-terminous with
this Lease ( the rent shall remain the same) and include the following options to extend:

     Tenant is hereby granted three (3) three-year options to renew:

          1st Option — 3% fixed increase each year

          2nd Option — 3% fixed increase each year

          3rd Option — 3% fixed increase each year

     All other terms and conditions shall remain the same other than the term and options for said
Lease at 757 South Raymond Said modification agreement is attached hereto as Exhibit F.

     D. Security System.

     Tenant shall have the right to alter, enhance and/or replace the existing security system.

     IN WITNESS WHEREOF, the parties hereto have executed these presents, in duplicate, the day and
year first above-written.

	 	 	 	 	 
	LANDLORD

	 	TENANT
	 	 
	 
	 	 	 	 
	Collis P. & Howard Huntington

Memorial Hospital Trust

a Testamentary Charitable Trust

	 	MOTORAOLA, INC.

a Delaware Corporation	 	 
	 
	 	 	 	 
	By:

	 	By:
	 	 
	 

	 	 	 	 
	Print Name: 

	 	Print Name: 

	 	 
	Its:

	 	Its:

	 	 
	Date:

	 	Date:
	 	 

-31-

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