Document:

Exhibit 10.1

 

Dated
June 30, 2003

 

VACUUMSCHMELZE
GmbH & Co.KG

 

ADVANCED
SUPERCONDUCTORS PROJECT HANAU GmbH & Co. KG

 

 

LEASE
AGREEMENT

 

HIGHWAY

 

 

HÖLTERS &
ELSING

RECHTSANWÄLTE

 

BERLIN
.. DÜSSELDORF . FRANKFURT

 

 

Content

 

	
  Section 1

  	
  Leased Property

  	
  3

  
	
   

  	
   

  	
   

  
	
  Section 2

  	
  Provision of Services

  	
  5

  
	
   

  	
   

  	
   

  
	
  Section 3

  	
  Term and Termination

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 4

  	
  Rent

  	
  8

  
	
   

  	
   

  	
   

  
	
  Section 5

  	
  Service Charges

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 6 

  	
  Payment by the Tenant

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 7

  	
  Representations and Warranties

  	
  13

  
	
   

  	
   

  	
   

  
	
  Section 8

  	
  Security

  	
  14

  
	
   

  	
   

  	
   

  
	
  Section 9

  	
  Rebuildings by the Tenant/ Advertising
  Boards

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 10

  	
  Utility Supplies

  	
  16

  
	
   

  	
   

  	
   

  
	
  Section 11

  	
  Maintenance, Repairs and Decorative Repairs

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 12

  	
  Improvements and Structural Alterations by
  the Landlord

  	
  18

  
	
   

  	
   

  	
   

  
	
  Section 13

  	
  Liability of the Tenant

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 14

  	
  Liability of the Landlord

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 15

  	
  Insurances

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 16

  	
  Return of the Total Leased Area

  	
  23

  
	
   

  	
   

  	
   

  
	
  Section 17

  	
  Rights of Access

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 18

  	
  Subletting and Legal Successors of Tenant

  	
  24

  
	
   

  	
   

  	
   

  
	
  Section 19

  	
  Reconstruction Clause, Interruption of
  Operation

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 20

  	
  Miscellaneous

  	
  27

  
	
   

  	
   

  	
   

  
	
  Section 21

  	
  Non-Competition

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 22

  	
  Arbitration

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 23

  	
  Final Provisions

  	
  29

  

 

2

 

Commercial
Lease Agreement

 

between

 

Vacuumschmelze
GmbH & Co. KG

Grüner Weg
37, 63450 Hanau, Germany

 

-the
“Landlord” -

 

and

 

Advanced
Superconductors Project Hanau GmbH & Co. KG

Silberstreifen 4, 76287 Rheinstetten, Germany

 

-the
“Tenant” -

 

- each
of them a “Party” or jointly the “Parties” -

 

Section 1

Leased Property

 

1.1                                 The Landlord
leases to the Tenant all areas which are solely related to the High Temperature
Superconductor (the “HTS”) and Low
Temperature Superconductor (the “LTS”)
production (jointly the “HTS and LTS Business”)
located on the Landlord’s premises in Josef-Bautz-Strabe (mail address: Ehrichstrabe 5), 63450 Hanau, Germany (the “Premises”) which are marked in pink on the building plan
attached in Annex 1 (hereinafter referred
to as “Total Leased Area”). The Total Leased
Area amounts to 5,666 square meters (in words: five thousand six hundred sixty
six square meters) of buildings and plants (the “Leased
Buildings”) and to 80 parking spaces.

 

The areas on the Premises not
leased to the Tenant are marked as follows:

 

3

 

The area solely used by the
Landlord is marked in green (the “Soley Used Area”)
and the area jointly used by both Parties (e.g. trafficroutes, social rooms
etc.) is marked in blue (the “Common Used Area”).

 

1.2                                 Without
limiting and notwithstanding any of the representations and warranties pursuant
to Section 7 hereof the Total Leased Area shall be leased as inspected.

 

1.3                                 The Tenant
shall use the Total Leased Area for the development and production of HTS and
LTS products and any auxiliary operations of the HTS and LTS Business.
Technical and organisational changes and developments of the HTS and LTS
Business are admissible without the consent of the Landlord to the extent that
the Tenant shall not interfere with the business of the Landlord remaining on
the Premises. Any use of the Total Leased Area not belonging to the production
and manufacture of superconductors is only admissible with the prior written
consent of the Landlord, which shall not be unreasonably withheld.

 

1.4                                 Any and all
kinds of noxious, smells and noises attributable to the HTS and LTS Business as
it is normally conducted are hereby accepted by the Landlord.

 

1.5                                 The Tenant, its
agents, employees, customers and suppliers shall use the Common Used Area only
to access the Total Leased Area or, in the case of the Tenant and its
employees, for social purposes (e.g. canteen, toilets etc.). Neither the Tenant
nor its guests, employees, customers or suppliers shall enter the Solely Used
Area unless specifically authorised by the Landlord.

 

1.6                                 All five
(5) cranes which are fixed to structural parts inside the buildings on the
Premises (the “Cranes”) shall remain in the ownership of the Landlord and shall
be leased hereunder to the Tenant.

 

1.7                                 All machinery
and all other assets fixed, anchored or otherwise positioned to the Leased
Buildings which are assigned and transferred to the Tenant under the Sale and
Purchase Agreement are only fixed, anchored or otherwise positioned to the Leased
Buildings temporarily and shall not be part of the Leased Buildings within the
meaning of § 94 of the German Civil Code (BGB),
but shall be Scheinbestandteile within
the meaning of § 95 of the German Civil Code (BGB).

 

4

 

Section 2

Provision
of Services

 

2.1                                 The Landlord
shall put the Tenant in a position to continue the HTS and LTS Business
purchased from the Landlord on the same areas of the Premises, used by the
Landlord for such HTS and LTS Business prior to the transfer of the HTS and LTS
Business to the Tenant. Therefore, the Landlord itself, or through an entity
designated by the Landlord, shall provide the Tenant with the following
services (the “Services”):

 

a.                         operating,
maintaining, repairing, replacing and cleaning of the Common Used Area
(including all buildings, plants, sidewalks, streets, etc);

 

b.                        operating,
maintaining, repairing, replacing and cleaning of all conduits (gas, water,
electricity, ventilation, compressed air etc.) of the Total Leased Area;

 

c.                         electricity,
gas and lighting supply to the Total Leased Area;

 

d.                        landscape and
landscape maintenance to the Total Leased Area;

 

e.                         providing and
disposing of water to the Total Leased Area (excluding waste water treatment);

 

f.                           removal of snow
and ice from the Common Used Area;

 

g.                        providing of 24
hour security on the Premises;

 

h.                        operating,
maintaining, repairing, replacing and cleaning of the Cranes.

 

2.2                                 In order to
ensure the provision of the Services to the Tenant, the Landlord is entitled to
conclude contracts with reputable service companies (the “Service
Contracts”). With respect to the Services pursuant to
Section 2.1 lit g any service company shall be disclosed to the Tenant
prior to entering into a Service Contract.

 

2.3                                 With respect to
the use of the Cranes, the Landlord and the Tenant shall mutually agree on a
adequate use of the Cranes by both Parties on the basis of the availability and
the scope and form of use during the last 6 month immediately prior to the
commencement of this Agreement.

 

5

 

Section 3

Term and Termination

 

3.1                                 Term

 

3.1.1                        This Agreement
shall enter into force upon the consummation of the transaction with regard to
the HTS and LTS Business contemplated in the Sale and Purchase Agreement
entered into between the Parties on the date hereof

 

3.1.2                        The term of
this Agreement shall be for a fixed period ending on December 31st, 2007 (the “Base Term”). Subject to and upon written notice (the “Extension Notice”) to the Landlord, the Tenant shall be
entitled to extend the term for another fixed period of five years ending on
December 31st, 2012 (the “Extended Term”). The Extension Notice shall be sent to the
Landlord not later than 12 months prior to the end of the Base Term. In this
case the Parties shall mutually agree on a rent adjustment. If no Extension
Notice is sent in due time this agreement shall be terminated by either Party
giving a written six months notice to the end of a calendar year, for the first
time to December 31st 2007. If this Agreement is not terminated
without cause by either Party subject to a notice period of 12 months to the
end of the Extended Term, the Agreement shall continue for a further period of
three years and thereafter for further periods of three years each, until a
notice is given, satisfying a twelve months notice period to the end of the
Agreement’s extension. In each case of an extension of this Agreement the
Parties shall mutually agree on a rent adjustment. If the Parties cannot agree
on a rent adjustment, each Party shall be entitled to request the appointment
of an expert arbitrator by the President of the Chamber of Commerce of
Frankfurt am Main, who shall decide at his/her own discretion on any adjustment
of the rent and whose decision shall be final and binding on both Parties..

 

3.2                                 Termination for Cause by the
Landlord 

 

The Landlord may terminate
this Agreement with immediate effect for good cause (Kündigung aus wichtigem Grund). Good cause permitting a
termination without notice shall be, without this list being deemed exhaustive,
if:

 

3.2.1                        the Tenant is more than two
consecutive months is arrears with the payment of the

 

6

 

rent or with payments
equalling two months rent, or if within a calendar year on at least three
occasions it is more than ten calendar days in arrears with such payments and
has been warned in writing; advance payments for service charge and the
statutory value added tax shall be deemed to be components of the rent for the
purpose of this clause;

 

3.2.2                        despite a written warning
from the Landlord, the Tenant:

 

a.               commits a substantial breach
of this Agreement;

 

b.              substantially violates the
rights of the Landlord or other tenants in any other way;

 

c.               is in breach of its
obligation under Section 1.3 of this Agreement;

 

d.              subject to Section 18
transfers possession of the Total Leased Area to a third party without written
consent of the Landlord; or

 

e.               does not provide the
security within the time limits as defined in Section 8.1;

 

3.2.3                        the Tenant suspends its
payment;

 

3.2.4                        the Tenant does not pay the
insurance premiums according to Section 15.

 

3.3                                 Termination for Cause by
Tenant

 

The Tenant may terminate
this Agreement with immediate effect for good cause (Kündigung aus wichtigem Grund). Good cause permitting a
termination without notice shall be, without this list being deemed exhaustive,
if:

 

3.3.1                        the Landlord is in breach of
an essential contractual obligation (Kardinalpflichten);

 

3.3.2                        the Landlord
refuses to consent to any installations by the Tenant pursuant to Section 9.1
if such refusal would cause a substantial impairment or disadvantage to the HTS
and LTS Business or the contractual use of the Total Leased Area;

 

3.3.3                        despite a
written warning from the Tenant, the Landlord or any of the Landlord’s tenants
continues to substantially violate the rights of the Tenant hereunder by
conduction any business on the Soley Used Area;

 

7

 

3.3.4                        The Service Agreement is
terminated by whatever reason.

 

3.4                                 Liability

 

3.4.1                        In the event of
a premature termination of the Agreement in accordance with Section 3.2.1 to
3.2.4, the Tenant shall be liable for the loss of rent, service charge and
other services during the originally envisaged Term as well as for any other
damages which the Landlord suffers as a result of the premature termination of
this Agreement, notwithstanding the Landlord’s right to other penalties or
interest. In case the Landlord leases the Total Leased Area within the
originally envisaged Term to a third party the amount payable by the Tenant to
the Landlord pursuant to sentence I above shall be reduced by the rent and
service charge payable to the Landlord by this third party. The same shall apply
accordingly if the Landlord or any of its affiliates uses the Total Leased Area
within the originally envisaged Term.

 

3.4.2
                     In the event of
a premature termination of the Agreement in accordance with Section 3.3.1
to 3.3.4, the Landlord shall be liable for any and all losses or damages
incurred by the Tenant as a result of the premature termination of this
Agreement, notwithstanding the Tenant’s right to other penalties or interest.

 

3.5                                 No Extension

 

The expiry of the Term of
this Agreement shall be authoritative and binding even if the Tenant continues
to use the Total Leased Area; contrary to § 545 German Civil Code (BGB) the Agreement shall then not be
deemed to be extended for an indefinite period of time.

 

Section 4

Rent

 

4.1                                 The rent (Mietzins) per square meter shall amount
to € 5.50 (in words: five Euros and fifty Cents) per month plus value-added tax
(the “VAT”) and is charged on the square
meters of the Leased Buildings (the “Building Rent”).
The rent for the Parking Spaces shall amount to € 15,00 (in words: fifteen
Euros) plus VAT per month and per Parking Space (the “Parking
Space Rent”). On the basis of 5,666 square meters of Leased
Buildings and 80 Parking Spaces, the total Rent amounts to

 

8

 

€ 32,363.00 (in words: Euros
thirty two thousand three hundred sixty three) plus VAT and plus adequate
insurance fee per month (the “Total Rent”).
The insurance fee shall be calculated on a pro rata basis of the spuare meters
of the Premises used by the Tenant and the Landlord based on the respective
Landlord’s insurance policy for the Premises.

 

4.2                                 This Total Rent
shall include all the Services listed in a, b, d, f, g and h of Section 2 and
the costs for exterior lighting (Aubenbeleuchtung)
on the Total Leased Area and the Common Used Area.

 

Section 5

Service Charges

 

5.1                                 Charges

 

The Landlord shall charge to
the Tenant, and the Tenant shall pay to the Landlord any and all charges, fees,
expenses, costs, quotas and taxes pertaining or connected to the Services set
out in Section 2.1 c and e (the “Service Charge”),
provided the Service Charge is calculated on a reasonable basis taking into
account reasonable and evidenced costs of the Landlord, which are directly
related to the Services. The Service Charge shall be due in addition to the
payment of Rent.

 

5.2                                 Other Charges

 

5.2.1                        The Tenant
shall pay directly to the competent offices and authorities all other charges,
taxes, duties and imposts directly attributable to the Total Leased Area (the “Other Charges”).

 

5.2.2                        On demand, the
Tenant shall provide to the Landlord sufficient evidence of payment of the
above imposts, taxes, duties and charges.

 

5.3                                 Budget and Statement of
Service Charge

 

5.3.1                        The Tenant
shall be provided with an estimate (subject to increase or decrease) of the Service
Charge due for the first year and hereby accepts the estimate as being subject
to any well founded increase or decrease.

 

9

 

5.3.2        The
Landlord shall keep appropriate invoices, records and documentation with respect
to the Service Charge.

 

5.3.3                        As soon as
practicable after the end of each calendar year, but in no event later than September 30th of each following year for the preceding year,
the Landlord shall provide the Tenant with a statement of the total Service
Charge (the “Statement”).

 

5.3.4                        The invoices,
records and documentation pertaining to the Statement will be available for a
period of one month after provision of the Statement for inspection during
normal business hours at the offices of the Landlord. Insofar as it affects the
Service Charge, the Tenant may challenge the Statement by written notice (“Challenging Notice”). Such notice must be given within one
month after receipt of the relevant Statement. In the absence of a timely
challenge, the Statement shall be deemed accepted, and the Tenant shall be
deemed to have waived any claim with regard thereto (“Final
Statement”).

 

5.3.5                        Any dispute
between the Landlord and the Tenant concerning the Statement shall be determined
by an expert whose decision shall be final and binding on the Parties, provided
that the Parties find no mutual agreement within 30 days of the receipt of the
Challenging Notice issued by the Landlord.

 

5.3.6                        Unless the
Landlord and the Tenant agree upon the identity of the expert, each Party may
apply for an expert to be appointed by the president of the Institute of
Accountants (Institut der Wirtschaftsprüfer
e. V.) of Düsseldorf. Such
expert must hold the position of a partner of PriceWaterhouseCoopers or of an
international accounting firm with a similar reputation. The expert shall be
entitled to ask the Landlord and/or Tenant to provide additional documents and
information if he considers those submitted under this Agreement to be
insufficient. The expert must allow the Landlord and the Tenant to make
representations and counter representations. The expert shall issue his
decision (also regarding the costs of this procedure) within 60 days after his
appointment. If the expert cannot or does not issue the decision within sixty
(60) days of the appointment, the appointment procedure outlined above is to be
repeated, unless the Parties otherwise agree.

 

5.4           Additional
Costs

 

The Service Charge relates
to the costs of the Services pursuant to Section 2.1 c and e and Section 5.2.
The Landlord shall be entitled to apportion to the

 

10

 

Tenant newly introduced
rates, levies and other charges which directly arise from the Tenant’s use of
the Total Leased Area, including those introduced retroactively, as from the
time they arise.

 

5.5                                 Excluded Costs

 

The costs of maintenance (Instandhaltung) and repairs (Instandsetzung) of roofs, (including roof
windows) external walls including facades, load-bearing walls and other
structural parts (Dach und Fach) of
the Total Leased Area shall not form part of the chargeable Service Charge.
Such costs shall be borne by the Landlord.

 

Section 6

Payment by the Tenant

 

6.1.          Payment
of Base Rent

 

The Total Rent shall be
payable in advanced monthly instalments due on the third working day of each
month (the “Total Rent Payment Day”).

 

6.2           Payment
of Service Charge

 

6.2.1        The
Tenant shall pay the Service Charge in advanced monthly instalments on the Total
Rent Payment Day.

 

6.2.2                        In the event of
exceptional but evidenced unbudgeted expenditures with respect to the Services
pursuant to Section 2.1 c and e that cannot be delayed and for which there
are insufficient funds in the Service Charge account, the Landlord may request
an exceptional payment on account of the Service Charge which the Tenant shall
pay on demand and without claiming any exception. Such exceptional payments
shall be payable within 10 working days.

 

6.2.3                        if, pursuant to the Statement, the total payments made
on account of the Service Charge during the relevant year are less than the
Service Charge actually due, the Tenant must, within one month of issue of the
Statement becoming final, pay any outstanding balance to the Landlord. If the
Statement is subsequently corrected, for example pursuant to Section 5.3.4
and Section 5.3.5 above, any resulting difference

 

11

 

has to be paid by the Tenant
within one (1) month after the correction of the Statement.

 

6.2.4                        If, pursuant to
the Statement, the total payment made exceeds the Service Charge actually due,
the Landlord will repay the exceeding amount within one (1) month to the
Tenant.

 

6.2.5                        For the
avoidance of doubt, the Tenant may not refuse or delay payment of the Service
Charge for reasons not wanting, needing or requiring some or all of the
Services.

 

6.3                                 Direct Debit

 

The Total Rent and the
Service Charge shall be paid to the Landlord by way of Einzugsermächtigung
(i.e. authorisation by the Tenant that the Landlord may withdraw the
amounts due from the Tenant’s account — direct debit).

 

6.4                                 Right of
Allocation

 

If the payments made by the
Tenant do not satisfy the respective accounts receivable of the Landlord to its
integrity, they shall be credited first against the non-enforceable and
non-pending liabilities and then against the legally enforceable liabilities.
They shall apply first to the older and then to the more recent liabilities as
the Landlord at its sole and only discretion shall decide. The allocation made
by the Landlord shall be notified to the Tenant in writing.

 

6.5                                 Right of
Redefinition of Advanced Service Charge

 

The Landlord may redefine
the advanced Service Charge if the Landlord provides reasonable proof that the
advance payments do not cover the expenditures.

 

6.6                                 Coverage of
Costs

 

The allocation of payments
made by the Landlord shall cover all costs charged to the Landlord during the
respective turnover period. Any invoices received subsequently for previous
periods of settlement shall be taken into account at the following settlement
however, any invoices pertaining to any times prior to the commencement

 

12

 

of this Agreement will not
be taken into account. If this Agreement begins or ends during a calendar
month, the Tenant shall bear the costs on a pro rata temporis basis.

 

6.7          Interest

 

In the event of any late or
unpaid amount due under this Agreement, the Landlord shall be entitled to
charge interest in arrears at a rate of 500 basis points above the three month
EURIBOR rate (the “Interest”).
Interest will accrue from the date of late payment, however in the case of a
breach of the Tenant’s duties under this Agreement (excluding the Tenant’s duty
to pay the rent). Interest will only accrue after a written notice of the
Landlord to the Tenant concerning the breach. Interest shall be due to the
Landlord, on any late or unpaid amount in addition to other rights and remedies
provided for in this Agreement.

 

6.8          Set-Off,
Retention Right

 

The Tenant may assert a
set-off or retention right with regard to the Rent and/or the Service Charge or
other claims of the Landlord under this Agreement only in respect of an
uncontested claim, a claim for which a decision upholding the claim is
forthcoming (entscheidungsreif) or
a claim already established in a legally binding manner.

 

6.9          Value
Added Tax

 

All amounts to be paid by
the Tenant to the Landlord under this Agreement shall be subject to VAT at the
respective statutory rate.

 

Section 7

Representations and Warranties

 

The Landlord herewith
represents and warrants that:

 

7.1                               the Total
Leased Area can be used by the Tenant for the superconductor production as
mentioned in the Information Memorandum free from any disturbances by the
Landlord, its employees, customers and suppliers, in particular the business of
the Landlord on the Soley Used Area will not interfere with the contractual use
of the Total Used Area.

 

13

 

7.2                                 the Landlord is
the legal owner of the Total Leased Area and no third party rights, liens or
other encumbrances of whatsoever kind exist which could infringe the
contractual use of the Total Leased Area by the Tenant;

 

7.3                                 the Total
Leased Area covers all areas and buildings of the Premises required for the HTS
and LTS Business as it was performed by the Landlord prior to the date hereof,
with the exception of these areas on which services are rendered to the Tenant
under the Service Agreement,; and

 

7.4                                 the Total
Leased Area and all buildings, including without limitation all conduits, energy
supply, doors, locks, windows, shutters, blinds, heating meters, laps and
lavatories, are in a reasonable condition sufficient to continue and perform
the HTS and LTS Business without any impairment.

 

Section 8

Security

 

8.1          Guarantee

 

Upon the entering into force
of this Agreement, the Tenant shall provide the Landlord with security (the “Security”) serving the entire Term, and in the amount of €
97,089.00 (in words: Euros ninety seven thousand eighty nine) (three times
Total Rent net). The Security shall be lodged as an unconditional, irrevocable
and directly enforceable (selbstschuldnerische)
first call guarantee provided by a reputable German bank or a German
savings bank under public law. The guarantee must exclude the possibility that
the guarantor bank can fulfil its obligation by way of deposit with a court.
The guarantee, throughout its term of validity, must exclude the right of the
Tenant to raise the argument that the claim is barred by statute of
limitations.

 

14

 

8.2          Use of Security

 

8.2.1                        The Landlord
shall be entitled to call upon the Security in respect of all claims pertaining
to the Lease and this Agreement against the Tenant. The Security shall also
cover claims by the Landlord after the end of this Agreement, e.g. for loss of
Rent, claims for damages, Interest or costs of legal action caused by any
unauthorised late vacation of the Total Leased Area by the Tenant at the end of
this Agreement.

 

8.2.2                        Insofar as the
Landlord makes use of the Security during the term of this Agreement, the
Tenant shall be obliged to increase it again to the agreed amount. If the
Tenant does not replenish the Security to the agreed amount within two months,
the Landlord shall be entitled to terminate this Agreement without notice
(Section 3.2.2.e).

 

8.3                                 Duration of
Security

 

8.3.1                        The Landlord
shall be obliged to return the Security three months after the end of this Agreement
provided that the Tenant has:

 

a.                                       vacated the
Total Leased Area,

 

b.                                      paid to the
Landlord all sums due under this Agreement, including all costs, damages,
indemnities, etc., and

 

c.                                       settled any
other outstanding claims with respect to this Agreement from the Landlord.

 

8.3.2                        If at the end
of this Agreement a Statement of the Service Charge still remains to be
calculated, the Landlord shall be entitled to retain an appropriate part of the
Security, at least, however, four times the amount to be paid pursuant to
Section 6.2.1, until payment is made.

 

Section 9

Rebuildings by the Tenant/ Advertising Boards

 

9.1           Changes to and in the Total Leased
Area, in particular conversions, fittings, installations and similar, require
prior written consent of the Landlord. Before installing machines, heavy
objects or other systems which have a material impact on 

 

15

 

the structural integrity of
the Total Leased Area, the Tenant shall require the Landlord’s prior written
consent thereto, which shall not be withheld without reason.

 

9.2                                 Gas and
electrical appliances shall only be connected to the existing mains in accordance
with their capacity. Additional appliances shall only be installed with the
Landlord’s prior written consent. The consent can be refused, if the capacity
of the existing mains would be overloaded and the Tenant refuses to bear the
costs of the necessary alterations to the mains.

 

9.3                                 The use of
outside walls for advertising purposes, including the design of such external
advertising, requires the consent of the Landlord. The Tenant may mount a
plaque on each of the facilities’ advertising boards for this purpose. The
Tenant may furthermore mount a plaque with Highway’s label and company name at
each entrance of the Premises and at each of the buildings of the Total Leased
Area.

 

9.4                                 Subject to
Section 2.1 the Tenant must comply with its legal duties of care imposed on
it in relation to the Total Leased Area, the access routes to the property and
the public roads in front of the property. Upon termination notice by either
Party the Tenant shall be entitled to amend the plaques by a reference to the
new address of the Tenant. Such plaques shall remain mounted for a period of
six months following the expiration of this Agreement. Upon termination of the
lease and expiration of the six month period following the termination, the
Tenant shall remove all plaques and advertisements and remedy any damage
resulting from the mounting of the advertisement or the removal of such
advertisement.

 

Section 10

Utility Supplies

 

10.1                    Changes

 

Changes to the energy supply
(in particular a change to the current voltage) as a result of force majeure,
order by an authority or other impossibility for which the Landlord is not responsible,
shall not entitle the Tenant to claim damages against the Landlord. 

 

16

 

10.2                         Disturbance /
Interruptions

 

If utility supplies of any
kind are temporarily disturbed or interrupted, the Tenant shall have no right
to reduce the Rent or Service Charge or to claim damages from the Landlord
unless the Tenant proves a default of the Landlord. The Landlord hereby assigns
any claims which it may have against the utility supplier to the Tenant, in
respect of loss suffered by the Tenant.

 

Section 11

Maintenance, Repairs and Decorative Repairs

 

11.1                         Tenant’s
Obligations

 

The Tenant shall ensure,
that the Total Leased Areas are adequately cleaned, aired and heated, and shall
treat the Total Leased Areas and the systems and equipment installed therein
with due care and keep them free of vermin.

 

11.2                         Decorative
Repairs

 

The Tenant shall, at his own
expense, carry out at reasonable intervals all decorative repairs
(wallpapering, painting or whitewashing the walls and ceilings, painting the
floors, the radiators including the heating pipes, the interior doors as well
as the windows and external doors from the inside, except for any roof windows)
inside the Total Leased Area. In addition, the Tenant shall maintain and repair
the following objects to the extent they are in his direct control, in
particular, window and door locks, locking mechanisms on the shutters, the
blinds, the lighting and doorbell system, the heating meters, the locks, the
taps, the lavatory flusher, the basin and drain, the boilers, the stove, and
replace all damaged window panes and display window panes, unless the Tenant
shows that he was not responsible for the damage pursuant to Section 13.

 

11.3         Substitution
Rights

 

If, despite a written request
of the Landlord at least fourteen days in advance, the Tenant fails to meet its
above mentioned obligations within reasonable time limits, the Landlord shall
be entitled to have the necessary work carried out at the Tenant’s costs. In
the event of imminent danger it shall not be necessary to provide for a time
limit.

 

17

 

11.4                         Landlord’s
Obligation

 

In addition to its
obligations pursuant to Section 2, it is the responsibility of the
Landlord to maintain (Instandhaltung) and
repair (Instandsetzung) at its
own costs the structural parts (Dach, Fach
and Fassade) and the landscape of the Total Leased Area, in
particular external walls including facades, roofs, roof windows, load bearing
walls, sidewalks and streets. To the extent the Tenant is responsible for the
maintenance of windows and door facilities they do not form part of the
structural parts (Duch, Fach and Fassade) of
the Total Leased Area within the meaning of this provision.

 

11.5                           In principle,
the Landlord shall be responsible for all maintenance, repairs and cleaning
outside the Total Leased Area and the Tenant shall be responsible for all
maintenance, repairs and cleaning inside the Total Leased Area. However, this
shall not apply and the Landlord shall be fully responsible for any objects,
their maintenance, repair and cleaning and functioning pertaining to the
Services pursuant to Section 2, in particular the conduits up to the
connection with the machinery or other equipment and the Cranes.

 

Section 12

Improvements and Structural Alterations by the Landlord

 

12.1                         Improvements
and Structural Alterations

 

12.1.1                  The Landlord may carry out
necessary improvements and necessary structural alterations for the extension
or completion of the Total Leased Area, for preventing imminent danger or for
the repair of defects or damage, even without the consent of the Tenant. The
Landlord shall inform the Tenant, insofar as possible if the Tenant is to be
affected, ten (10) business days prior to the execution of such work,
unless in case of an emergency. In any case the Tenant shall agree on any work,
if such work may impair the contractual use of the Total Leased Area, except
for cases of an emergency.

 

12.1.2
               The Landlord
may also carry out appropriate improvements and appropriate structural
alterations for the extension or completion of the Total Leased Area and for
the preservation or modernisation of the Total Leased Area subject to the prior

 

18

 

written consent of the
Tenant, which shall not be unreasonably withheld. In such case, the Landlord
will inform the Tenant of the intended work and the foreseeable impairments to
the contractual use of the Total Leased Area within a reasonable notice period
of at least ten (10) business days. The Landlord and the Tenant shall
agree on the way the appropriate improvements or alterations will be executed.
Any impairment of the contractual use of the Total Leased Area shall be avoided
as far as possible.

 

12.1.3
               The Tenant
shall keep the parts of the Total Leased Area which are concerned by such work
accessible. The Tenant shall not impair the performance of the work and the
Landlord shall organise and perform any such work so as to minimize the
disruption to the Total Leased Area. Any nuisance arising from the
aforementioned work, in particular odour, soiling, noise and reduction of the
amount of light or air enjoyed by the Total Leased Area shall be tolerated by
the Tenant without compensation. However, the right to reduction pursuant to
Section 12.2 remains applicable.

 

12.2        Right to Reduction of Rent or Service Charge

 

The Tenant may only reduce
the Rent or Service Charge if the work significantly impairs the contractual
use of the Total Leased Area.

 

Section 13

Liability of the Tenant

 

13.1        Damage caused to the Total Leased Area or Third Party
Property

 

The Tenant shall be liable
towards the Landlord for all damage wilfully or negligently caused to the Total
Leased Area or the Landlord’s or third party’s property by the Tenant, its
agents and/or employees as well as the craftsmen commissioned by it, its
suppliers and/or other persons in relationship with it. It shall, in
particular, be liable for damage caused by improper handling of high-voltage
and low-voltage facilities, to the toilet, sanitary, sprinkler and heating
systems, the Cranes, by failure to comply with fire prevention regulations or
to fulfil other obligations incumbent upon it (lighting, etc.).

 

19

 

13.2                         Remedy

 

The Tenant shall remedy the
damage for which it is responsible in accordance with the foregoing Subsection
13.1 without delay. If it fails to fulfil this obligation despite a written
reminder specifying a reasonable period of time determined by the Landlord, the
Landlord may have the necessary work being carried out at the expense of the
Tenant. If such damage causes imminent danger or if the Tenant cannot be
contacted, it shall not be necessary to send a reminder or to allow an
additional period of time.

 

13.3                         Information
Obligation

 

Insofar as the Landlord is
responsible for the repair of defects or damage in the Total Leased Area, the
Tenant shall inform the Landlord without delay (unverzüglich). The Tenant
shall be liable for any more extensive damage caused as a result of delayed
notification.

 

13.4                         Safeguard
Traffic (Verkehrssicherungspflicht)

 

The lease is subject to the
duty to safeguard traffic (Verkehrssicherungspflicht)  within the Total Leased Area in
accordance with the general legal provisions. The Tenant is, in particular,
obliged to safeguard traffic against damage to the health, life, property and
other possessions of the Landlord, its employees and representatives and of
third persons that enter the Total Leased Area within its responsibility for
the buildings and landscape of the Total Leased Area according to
Section 11. The Tenant shall hold harmless, free and indemnify the
Landlord against claims by third parties in this respect. According to the
responsibility of the Landlord pursuant to Section 11.4 the Landlord is
obliged to safeguard traffic against damage to health, life, property and other
rights of the Tenant, its employees and representatives and of third persons
that enter the Total Leased Area.

 

13.5                         Escape Routes

 

Traffic and escape routes
shall be kept permanently free. No objects may be stored or otherwise placed on
the Premises outside the Total Leased Area.

 

20

 

Section 14

Liability
of the Landlord

 

14.1                           Liability
Standard

 

The Landlord shall only be
liable (“Liability Standard”) for damage caused
to the Tenant, its employees, agents, suppliers, customers and other
representatives to the extent that the Landlord:

 

a.               has caused such
damage as a result of wrongful intent or gross negligence; or

 

b.              has caused
injury to life, body, or health; or

 

c.               is in breach of
an essential contractual obligation (Kardinalpflicht)  or of an repreentation and warranty pursuant to Section 7
hereof; or

 

d.              is liable
according to compulsory law.

 

14.2                           Defects of the
Total Leased Area

 

The Tenant may only assert
damage claims in respect of defects of the Total Leased Area if the damage or
impairment is substantial and has been caused by the Landlord pursuant to the
Liability Standard. Notwithstanding the aforementioned, any rights of the
Tenant pursuant to § 536 of the German Civil Code shall remain effective.

 

14.3                           External
Influences

 

The Tenant may only assert
damage claims in respect of external influences created by third parties, such
as excavations, street closings, noise, odour and dust nuisances irrespective
of their extent, if the Landlord is responsible pursuant to the Liability
Standard.

 

14.4                           Other Liability

 

The liability of the
Landlord is also excluded for damages resulting from causes such as fire,
smoke, soot, snow, water, dry rot and humidity, unless the Landlord is
responsible pursuant to the Liability Standard and if the Landlord has not
rectified such defects within a reasonable time after timely notification by
the Tenant. The

 

21

 

same shall apply for other
direct or indirect consequences, in particular resulting form malfunctions or
defect operation of the technical devices of the buildings.

 

14.5                           Third Parties

 

14.5.1                Liability
against Third Parties

 

The Landlord is liable for
loss or damage suffered by third parties (excluding employees or visitors of
the Tenant, and its suppliers and customers) whether directly or indirectly
only in accordance with the relevant statutory provisions. This applies also if
the affected third party has a contractual and/or quasi-contractual
relationship with the Tenant.

 

14.5.1                Damage caused
to the Highway Business or third party property

 

Not with standing the
aforementioned, the Landlord shall with respect to its business conducted on
the Soley Used Area (presently the business of Rascherstarrung) be liable
towards the Tenant for all damage wilfully or negligently caused to Highway or
Highway’s or third party’s property by the Rascherstarrung Business, the
agents, employees and craftsmen commissioned by this business and suppliers and
customers in relation with this business.

 

14.6                           Limitations

 

14.6.1
               For breaches of an essential
contractual obligation (Kardinalpflicht)  and/or violations of life, body or health, by the
Landlord, its executive body (Organe)
and/or its employees (Leitende Angestellte)  due to simple negligence (einfache
Fahrlässigkeit), the liability
of the Landlord is limited to the typical and foreseeable damage. This
limitation of liability to the typical and foreseeable damage also applies for
negligent (Fahrlässigkeit)  breaches of an
essential contractual obligation (Kardinalpflicht)  and damages caused gross negligently (grobe
Fahrlässigkeit)  by any other of
the auxiliary persons (Erfüllungsgehilfen)  of the
Landlord.

 

14.6.2
               The Landlord shall only be
liable pursuant to the Liability Standard with respect to the proper selection
and/or possible necessary surveillance of employees engaged by the Landlord,
which are not senior employees of the Landlord.

 

22

 

14.7                           Applicability

 

All
exclusions or limitations of liability set out above or otherwise in
this Agreement in favour of the Landlord shall also apply in favour of the
employees and advisors engaged by the Landlord. Exclusions of liability
contained in this Agreement going beyond this remain unaffected by the above
provisions.

 

Section 15

Insurances

 

15.1                           The Landlord
will effect appropriate insurance coverage in respect of the premises and
charge the Tenant the premium accordingly.

 

15.2                           The Tenant
shall insure the contents of the Total Leased Area except for such contents
falling within the responsibility of the
Landlord, in particular any object pertaining to the Services hereunder or
pursuant to the Service Framework Agreement.

 

Section 16

Return of the Total Leased Area

 

16.1                           At the end of
this Agreement, the Tenant shall return the Total Leased Area to the Landlord
in the same condition as it was at the commencement of this Agreement. The
Tenant shall remove all objects
in the Total Leased Area, to the extent that they are not owned by the
Landlord. The Tenant shall remove all damages which are caused by the Tenant
during the lease or by the removal of its objects.

 

16.2                           If the Tenant
does not carry out the work necessary pursuant to Section 16.1 by the end
of this Agreement the Landlord can, after having set a reasonable deadline,
carry out such work at the cost of the Tenant. In such case, the Tenant shall
be liable for the costs which arise for the Landlord as a result of the delayed
completion of the work (in particular the loss of Rent and Service Charge).

 

23

 

Section 17

Rights of Access

 

17.1                           The
Landlord and its representatives may enter the Total Leased Area
during normal business hours at any
time for inspection on not less than forty-eight (48) hours’ notice,
unless otherwise stated in this
Agreement, causing as little disturbance as practicable.

 

17.2                           In case of
emergency, the Tenant shall ensure that access to the Total Leased Area will
also be possible outside the normal business hours and in its absence (e.g. by
making available a sealed key to the Landlord). If such key is not made
available, the Total Leased Area may be entered in an appropriate manner in the
event of emergency. The person entering the Total Leased Area is to cause as
little damage and disturbance as practicable, however the costs associated with
any damage caused by such access shall be borne by the Tenant. The Landlord
shall take reasonable measures that any person entering the Total Leased Area
according to this provision shall keep any information regarding the HTS and
LTS Business strictly confidential.

 

17.3                           The Tenant must
allow access to all the Landlord’s plant and equipment within the Total Leased Area for maintenance purposes, at all reasonable times.

 

17.4                           The
Tenant, its representatives and/or employees shall not have the right to
enter the areas on the Premises which
are not part of the Total Leased Area or Common Used Area, except as otherwise agreed between the
Tenant and the Landlord or if required
to access to the canteen.

 

Section 18

Subletting and Legal Successors of Tenant

 

18.1                           Subletting

 

Subletting
of the Total Leased Area or any other transfer of possession for use to a
third party is only permitted with the prior written consent of the Landlord,
which shall not be unreasonably withheld. Section 540 para. (1) sentence 2 German Civil Code (BGB)  does not apply.

 

24

 

18.2                           Change in
Corporate Structure

 

The Tenant shall inform the
Landlord in reasonable time of the following changes:

 

a.               if the Tenant
is a partnership, a change, whether directly or indirectly, of a personally
liable partner or of its legal form;

 

b.              if the Tenant
is a sole proprietorship, a change of the proprietor; and

 

c.               if the Tenant
is a corporation, a change with respect to one or more shareholder(s) as compared
to the structure of the Tenant at the Lease Commencement, regardless whether
this occurs in one or several steps, who hold(s) individually or jointly
at least a 25 percent share.

 

The Tenant shall also inform
the Landlord without undue delay in writing of changes in respect of the trade
licence or other circumstances which are relevant for this Agreement.

 

The Landlord is not entitled
to terminate this Agreement for good cause in the event of a change in the
corporate structure of the Tenant

 

18.3                         Sale of
Business

 

In the event of a sale of
the Tenant’s entire business or part thereof to an affiliated company of the
Tenant within the meaning of § 15 et seq. of the German Stock Corporation Act (Aktiengesetz), this Agreement shall be
transferred to the legal successor of the Tenant, without prior consent of the
Landlord provided that a proper continuation of this Agreement is not
jeopardised thereby. In the event of a sale of the Tenenat’s entire businesss
or part thereof to a third party, this Agreement shall only be transferred to
the legal successor of the Tenant, subject to the prior written consent of the
Landlord, such consent shall not be unreasonably withheld.

 

18.4                           Tenant’s
Transfer Prohibition

 

Unless otherwise agreed in
this Agreement, the Tenant shall not be entitled to transfer any rights and
obligations under this Agreement to third parties without the prior written
consent of the Landlord, such consent not to be unreasonably withheld. In the
event of a transfer of any rights and obligations under this Agreement to an

 

25

 

affiliated company of the
Tenant within the meaning of § 15 et seq. of the German Stock Corporation Act (Aktiengesetz), these rights and obligations
shall be transferred without the prior consent of the Landlord. § 354a German
Commercial Code (Handelsgesetzbuch)  remains unaffected.

 

Section 19

Reconstruction
Clause, Interruption of Operation

 

19.1                           Substantial
Damage

 

If the Total Leased Area or
the facilities in common use are completely or substantially destroyed or
damaged by errors of design, fire, explosion, lightning, storm, force majeure,
acts of war or other circumstances, this Agreement shall expire only after the
Landlord has declared that he will not carry out a reconstruction. The Landlord
will make a declaration in this regard to the Tenant within five months after
the day of the damage. Before that point, there shall be no right of
termination. Insofar as the permitted activities of the HTS and LTS Business
regarding the damaged or destroyed Total Leased Area are no longer possible,
the Tenant’s obligation to pay Rent and Service Charge shall be suspended as
from the day following the damage. In the event of partial damage or
destruction, the obligation to pay Rent and Service Charge shall be suspended
on a pro-rated basis, insofar as the remainder of the Total Leased Area is
usable by the Tenant. After reconstruction, the provisions in respect the
payment of Rent and Service Charge shall apply mutatis mutandis.

 

19.2                           Interruptions

 

In the case of material
interruptions in the operation of the Total Leased Area (including but not
limited to a substantial interruption of utility supplies) - for any reason
whatsoever - irrespective of the Landlord’s responsibility, the obligation to
pay Rent and Service Charge shall be suspended for the time of interruption,
provided, however, the time period is substantial.

 

19.3                           Damages

 

In the aforementioned cases
the Tenant shall only be entitled to damages in accordance with Section 14.1.

 

26

 

Section 20

Miscellaneous

 

20.1                           Landlord’s
Right of Transfer

 

The Landlord is entitled at
any time to transfer its rights and obligations hereunder to an affiliated
company, provided that a proper continuation of this Agreement is not
jeopardised thereby. Affiliated company shall be any company affiliated with
the Landlord within the meaning of § 15 et seq. of the German Stock Corporation
Code. The Landlord is entitled without limitation to sell the Total Leased Area
in its entirety or partially at any time. On the provision of notice of such
legal succession to the Tenant the Landlord withdraws from all rights and
obligations from the contractual relationship with the Tenant (releasing
transfer of contract to a legal successor).

 

20.2                           Right of First
Refusal I

 

In the event the Landlord
should intend or plan to lease the Common Used Area and/or the Soley Used Area
in its entirety or partially, the Landlord shall, prior to any approach to any
third party, including without being limited to any broker or agent, and in
each case be obliged to offer to lease such area to the Tenant pursuant to the
following provisions:

 

a.               The Landlord
shall provide a written offer to the Tenant covering the terms and conditions,
in particular the price, under which the Landlord intends or plans to lease the
respective area. The Tenant shall be entitled to accept the offer within 30
calendar days by a written letter of acceptance to the Landlord.

 

b.              The Tenant
shall only be entitled to accept the offer with respect to the complete area.

 

c.               If the Tenant
should not or not within the acceptance period accept the offer, the Landlord
may lease the respective area to any third party provided that the terms and
conditions of such sale are neither in the aggregate nor individually more
favourably than the terms and conditions of the offer to the Tenant. However,
the

 

27

 

Landlord shall not be
entitled to lease any area to a competitor of the Tenant or its affiliates.

 

d.
           The Right of First Refusal I
shall revive if the respective area is not leased by the Landlord within six
months after the rejection by the Tenant or the expiration of the acceptance
period, whatever date occurs first.

 

20.3                           Right of First
Refusal II

 

In the event the Landlord
intends or plans to sell and transfer the Premises in its entirety or partially
to any third party, the Landlord shall inform the Tenant accordingly and shall
enter into negotiations with the Tenant upon the terms and conditions required
by the Landlord. If the Tenant and the Landlord should not agree on the terms
and conditions of a sale within 60 calendar days, the Landlord may sell and
transfer the Premises or its respective part to any third party, provided that
the terms and conditions of such sale are neither in the aggregate nor
individually more favourably than the terms and conditions first set forth by
the Landlord for the negotiations with the Tenant. However, the Landlord shall
not be entitled to sell the Premises in its entirety or partially to a
competitor of the Tenant or its affiliates.

 

Section 21

Non-Competition

 

The Landlord shall not lease
the Common Used Area and / or the Soley Used Area to any competitor of the
Tenant or its affiliates.

 

Section 22

Arbitration

 

All disputes arising in
connection with this Agreement shall be finally settled according to the
arbitration rules of the German Institution of Arbitration e. V. (DIS)
(the “Rules”) without recourse to the ordinary courts of law according to the
following provisions:

 

28

 

(1.)                               Each Party
(“Requesting Party”) may, by written notice (the “Arbitration Request”) to the
other Party (the “Other Party”), refer such dispute, difference or question to
arbitration. The Arbitration Request shall set forth the nature of the dispute,
the amount involved (if any), the remedy sought, and the name and address of
the Requesting Party’s arbitrator.

 

(2.)                               The arbitral
tribunal shall consist of three arbitrators, one appointed by the Requesting
Party in the Arbitration Request and one appointed by the Other Party in
writing to the Requesting Party within sixty (60) days of the date of receipt
of the Arbitration Request. The arbitrators so selected shall, within sixty
(60) days of the date of appointment of the second arbitrator, agree on a third
arbitrator. If any of the arbitrators shall not be appointed within the time
limits specified above, such arbitrator shall be appointed by the President of
the Frankfurt/Main Chamber of Commerce at the written request of either party.

 

(3.)                               The arbitration
proceedings shall be held in English. The place of arbitration shall be Frankfurt
am Main/Germany. In the event of any conflict between the Rules and this
Agreement, the provisions of this Agreement shall govern.

 

Section 23

Final
Provisions

 

23.1                           Savings Clause

 

The validity of this
Agreement shall not be affected by the invalidity of individual provisions nor
by contractual gaps. An invalid provision or a gap shall be replaced or filled
by a valid provision which corresponds as far as possible to the meaning and
purpose of the cancelled provision or of the remaining provisions hereof.

 

23.2                           Written Form

 

Agreements, declarations and
representations (Zusicherungen)  of any kind whatsoever which concern this Agreement
or the Total Leased Area or other supplements, amendments, rescissions,
prolongations or additions of this Agreement shall only be valid if made in
writing (excluding telex, fax, or other electronic communication) and signed in
a legally binding manner by the Landlord and the

 

29

 

Tenant. This applies also
with respect to a change or rescission of this written form requirement itself.

 

23.3                           Statutory
Requirements

 

The contracting parties are
aware of the particular statutory requirements under §§ 550, 126 German Civil
Code (Bürgerliches
Gesetzbuch) concerning written form. They hereby undertake at
any time and on demand of one of the parties to carry out all acts and to make
all declarations which are required in order to satisfy the statutory
requirements for written form, and not to terminate this Agreement prematurely
by relying on a possible non-compliance with the statutory written form. This applies
not only for the conclusion of this Agreement but also for possible contracts
containing supplements, rescissions, amendments, prolongations and additions.

 

23.4                           Annexes

 

This Agreement contains an
Annex. This Annex forms an essential part of this Agreement and is binding upon
both parties. In case of discrepancies between the Agreement and the Annex, the
provisions of this Agreement shall prevail.

 

23.5                           Counterparts

 

This Agreement is executed
in two originals, one for the Landlord and one for the Tenant.

 

23.6                           Governing Law,
Contract Language

 

The Parties hereby agree
that this Agreement and the respective rights, duties and obligations of the
Parties hereunder, shall be governed by an construed in accordance with the
laws of the Federal Republic of Germany, without giving effect to the
principles of conflicts of laws.

 

The Parties agree that the
relevant contractual language shall be English.

 

30

 

23.7                           Place of
performance and place of jurisdiction

 

Not regarding
Section 22 (Arbitration), the place of performance and the place of
jurisdiction for all obligations arising out of this agreement shall be Hanau,
Germany.

 

 

Hanau, this 30th day of June
2003

 

	
  /s/ Andrea Bauer /s/ Paul Reinhard

  	
   

  	
  /s/ Victor Ringeisen /s/ Gerhard Ruth

  
	
  Landlord

  	
   

  	
  Tenant

  
	
   

  	
   

  	
   

  
	
  Represented by

  	
   

  	
   

  	
  Represented by

  	
   

  
					

 

31

 

Annex 1

 

Building
Plans

 

32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Translated from German)

 

Supplementary agreement to the lease

between

Vacuumschmelze GmbH & Co. KG

and

Advanced Superconductors Project Hanau GmbH & Co. K

dated June 30, 2003

 

Hanau, March 19, 2007

 

The following amendments to §1 and §4 of the aforementioned contract are hereby agreed upon between the contractual parties:

 

1. Amendment to the total rental area (§1)

 

Reduction in rental area

 

	
Site
   (Former designation)
    	
 
    	
Area in m2
    	
 
    
	
Bldg. 301 corridor 2 VI
    	
 
    	
14.84
    	
 
    
	
Total reduction
    	
 
    	
14.84
    	
 
    

 

The rented area (“leased area”) shall thereby be reduced from 5,751 m2 to 5,736 m2 effective April  1, 2007.

 

2. Change of the mutually used areas

 

Reduction in mutually used areas

 

	
Site
   (Former designation)
    	
 
    	
Area in m2
    	
 
    
	
Bldg. 301 corridor 3 G1
    	
 
    	
45.16
    	
 
    
	
Bldg. 301 corridor 3 G2
    	
 
    	
30.99
    	
 
    
	
Bldg. 301 corridor 3 G3
    	
 
    	
4.45
    	
 
    
	
Bldg. 301 corridor 3 G4
    	
 
    	
9.23
    	
 
    
	
Total reduction in jointly  used areas
    	
 
    	
89.83
    	
 
    

 

3. Amendment of the layouts

 

The layouts according to Attachment 1 (“building plans”) of the lease of June 30, 2003, shall be amended as indicated below and become a component of the lease as Attachment 1 of this supplementary agreement:

 

	
Location
    	
 
    	
Old drawing
    	
 
    	
New drawing
    
	
Bldg.   301 corridor 2 V1
    	
 
    	
3012   - 05a dated 10/30/02
    	
 
    	
301.2
    
	
Bldg.   301 corridor 3 G1
    	
 
    	
3013   - 04 dated 10/30/02
    	
 
    	
301.3
    
	
Bldg.   301 corridor 3 G2
    	
 
    	
3013   - 04 dated 10/30/02
    	
 
    	
301.3
    
	
Bldg.   301 corridor 3 G3
    	
 
    	
3013   - 04 dated 10/30/02
    	
 
    	
301.3
    
	
Bldg.   301 corridor 3 G4
    	
 
    	
3013   - 04 dated 10/30/02
    	
 
    	
301.3
    

 

1

 

Additional agreement to the lease

between

Vacuumschmelze GmbH & Co. KG

and

Advanced Superconductors Project Hanau GmbH & Co. K

dated June 30, 2003

 

Hanau, March 19, 2007

 

4. Rental change (§ 4)

 

The rent shall be reduced by €81.62 (14.84 m2 X €5.50) as of April 1, 2007

 

The total monthly rent shall be reduced from €32,529.50 to €32,447.88 as of April 1, 2007.

 

5. Amendment to Section 6, Paragraph 6.9 Value Added Tax

 

The contractual parties agree to the following supplement to Section 6, Paragraph 6.9, Value Added Tax to the lease of 06/20/2006:

 

The landlord is registered at the tax office at Hanau under Tax ID No. 022 377 00076

 

The tenant is registered at the tax office at Hanau under Tax ID No. 022 315 60388

 

6. The agreed upon changes under 1 through 5 are components of the lease dated June 30, 2003. All further conditions of the lease remain unchanged.

 

	
Vacuumschmelze   GmbH & Co. KG
    	
 
    	
European   Advanced Superconductors
    
	
GmbH &   Co. KG
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Paul Reinhard
    	
 
    	
/s/   Burkhard Prause
    
	
 
    	
 
    	
/s/   Peter Unvericht
    

 

Appendix 2: 5 Layouts

 

2

 

VAC

VACUUMSCHMELZE

 

European Advanced Superconductors GmbH& Co. KG

Dr. Burkhard Prause

Mr. Peter Unvericht

Ehrichstrasse 10

 

63450 Hanau

 

	
Your   reference
    	
Your   message of
    	
Our   reference
    	
Hanau,   Grüner Weg 37
    
	
 
    	
 
    	
K-HT   / PR
    	
12/19/2006
    

 

Lease agreement

Lease extension

 

Dear Dr. Prause,

Dear Mr. Unvericht,

 

With your written declaration of 10/31/06, you noted the contractually fixed option of another extension of our lease. The tenancy is thereby extended until 12/31/2012.

 

In accordance with §3.1.2, an adjustment of the rent is foreseen with each extension of the lease. With reference to the constantly escalating costs, we cannot avoid making an adjustment to the rent from 5.50 euros per m2 + value added tax to 5.85 euros/m2 + value added tax. This rent shall apply effective January 1, 2008. [handwritten: = 6.4%]

 

We still ask for your understanding that, at the present time to the best of our ability, we cannot arrange a renewed option for another 5 year extension after 12/31/2012. This also applies to an extension of period of notification from 12 to 24 months.

 

Of course, we are quite prepared to take up these topics again “closer to the date” and then find a solution that is satisfactory for both parties.

 

Yours truly,

 

VACUUMSCHMELZE GmbH & Co. KG

 

	
Andreas   Bauer
    	
Paul   Reinhard
    
	
CFO   Vac Group
    	
Vice   President
    
	
 
    	
Business   Administration
    

 

	
VACUUMSCHMELZE   GmbH & Co. KG
    	
Personally   liable partner:
    	
Chief   executive:
    
	
Grüner   Weg 97
    	
D-63450   Hanau
    	
VAC   Finanzierung GmbH
    	
Dr. Hartmut   Eisele
    
	
PO   Box 22 53
    	
D-63412   Hanau
    	
HDQ:   Hanau
    	
 
    
	
Phone:   switchboard ++ 49/6181-38-0
    	
Registry   court Hanau HRB 91707
    	
 
    
	
http://www.vanuumschmelze.com
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Legal   form: GmbH & Co. KG
    	
Operator:
    	
 
    
	
Headquarters:   Hanau
    	
Phone
    	
++49/6181   - 38 -
    	
 
    
	
Registry   court Hanau HRA 5479
    	
Fax
    	
++49/6181   - 38 -
    	
 
    
	
 
    	
E-Mail
    	
 
    

 

 

	
EAS
    	
European   Advanced Superconductors GmbH & Co. KG
    

 

EAS GmbH & Co KG Ehrichstraße 10, 83450 Hanau, Germany   COPY

 

Vacuumschmelze GmbH & Co. KG

Mr. Paul Reinhard

by in-house mail

 

	
Your   reference
    	
Your   message of:
    	
Our   reference
    	
Hanau,   Ehrichstraße 10
    
	
 
    	
 
    	
Unv
    	
10/31/2006
    

 

Lease Agreement /

Extension of the lease through 12/31/2012

 

Dear Mr. Reinhard,

 

in accordance with the contractual regulations of our lease (Section 3.1.2), EAS has the option of extending the lease by an additional 5 years until 12/31/2012 by so declaring in due time (an “Extended Term”).

 

We hereby declare in due time that we shall invoke this option and thereby want to continue our tenancy until 12/31/2012.

 

The contract furthermore provides that the tenancy shall be extended after 12/31/2012 by an additional 3 years in each case if not terminated by a contracting party at the end of the respective period of extension with an advance notification period of 12 months.

 

The strategic orientation of EAS emanates from its long-term stay at the present location, combined with further, steady investments into the production and construction of a new production technology, whose spatial and environmentally relevant requirements we are already discussing with your company.

 

Given this background, we request that you check whether or not we could amend the current contractual agreements to the effect that a renewed extension by a further 5 years within the meaning an “extended term” could be added after the rental period, which has now been extended to 12/31/2012.

 

Should you not be able to agree to such a change, then we propose at least increasing the notification period for cancelation from 12 months to 24 months since, according to our current knowledge, we can no longer assume that we will be able to find a new location and within 12 months and make the move in this

 

	
European Advanced   Superconductors 
   GmbH & Co. KG 
   Ehrichstraße 10 D 63450 Hanau
   Phone switchboard ++496181
   4384-4100 
    	
Personally liable   partner: 
   European Advanced Superconductors Verwaltungs
   GmbH
   HDQ: Hanau
   Court registry Hanau HRB 7581 
    	
Compiler: Peter   Unvericht
   Phone ++ 496181 4384 - 4138
   Fax: ++ 496181 4384-4445
   e-mail: Peter.Unvericht@
   advancedsupercon.com 
    
	
 
    	
 
    	
 
    
	
Legal format   GmbH & Co. KG
    	
 
    	
 
    
	
HDQ Hanau
    	
Chief corporate   officers
    	
 
    
	
Registry-court Hanau   HRA 5715
    	
Dr. Burkhard   Prause, Dr. Tony Keller, Jörg Laukien,
    	
 
    

 

 

time without drastically affecting our delivery ability as well as our general functional ability.

 

We would welcome it very much if you could agree to a contractual amendment and anticipate your quick reply.

 

Yours truly,

 

European Advanced Superconductors GmbH & Co. KG

 

	
/s/   Burkhard Prause
    	
 
    	
/s/   Peter Unvericht
    
	
 
    	
 
    	
 
    
	
Dr. Burkhard   Prause
    	
 
    	
Peter   Unvericht
    
	
Manager
    	
 
    	
Commercial   Director
    

 

2Exhibit 10.2

 

(Translated from German)

 

Copy: 07/11/2003

 

	
LEASE
    	
[Handwritten: 2   copies]
    
	
 
    	
 
    
	
between
    	
[Handwritten: Attachment 1a]
    

 

GFW VERMÖGENSVERWALTUNG Georg and Fritz Wissler GbR,

Babenhäuser Strasse 4, 63762 Grossostheim

Telephone 06026/9747-0, Fax 06026/974740,

represented by General Manager Georg A. Wissler

 

- LANDLORD -

 

and

 

European Advanced Superconductors GmbH & Co. KG

Ehrichstr. 5, 63450 Hanau

Phone 0 61 81 / 38 - 22 90, Fax 0 61 81 / 38 - 8 22 90,

represented by its General Managers Dr. Helmut Krauth

and Mr. Walter Pölzl

 

- TENANT -

 

the following LEASE is concluded:

 

§ I.

 

Rental premises:

 

1. As owner, the landlord shall rent office building 3A and the adjoining warehouse 3B in the Hanau Industrial Park, Hafenstrasse 15/Ehrichstrasse 10, 63450 Hanau, to the tenant.

 

The rental of office building 3A takes place for the use of the commercial and technical administration of the tenant and Advanced Superconductors Verwaltungs GmbH.

 

Cables, superconductor spools, raw materials, packaging, etc. will be stored and shipped in warehouse 3B. Finished goods will be transported from Ehrichstrasse 5 to Ehrichstrasse 10. Moreover, in hall 3B light production will be sporadically carried out, e.g. a small lathe and cording machines will be installed.

 

1

 

2. Hall floor:

The hall floor consists of compacted earth, a gravel base course, a bituminous base course, asphalt and fine concrete surface and a coat of latex paint.

The hall floor is thermoplastic. It can support an evenly distributed surface load of 5,000 kg / m2 = 0.5 kg / cm2.

Load dividers shall be used if this surface load is exceeded. Allowable total pressure between load dividers and ground = 6 kg / cm2.

 

3. Storage takes place on a 120m-long storage shelf with 4 shelf levels. The maximum storage height due to ceiling sprinklers is: 6.50 m.

 

4. The landlord guarantees use of the hall, but not tenant installations within the context of the respective official and legal standards.

 

5. The rented usable building space amounts to 3,610 m2. The arrangement of the co-rented courtyard side wrap-around area and 20 automobile parking spaces in front of the office is evident from the enclosed layout.

 

6. According to DIN 277, upon a request from the tenant, the tenant and landlord shall jointly measure the rental area by no later than 09/15/2003; otherwise the cubic meters inserted in §III apply.

 

7. The description of the rental premises follows from the signed plans of the 07/11/2003, consisting of:

 

	
1)
    	
No. 1031b   layout
    	
Building 3
    	
07/11/2003
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
2)
    	
No. 1031c   plan + side view of hall
    	
Building 3
    	
07/11/2003
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
3)
    	
No. 1031d   plans of office + common areas
    	
Building 3
    	
07/11/2003
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
4)
    	
No. 1031e   cross section + longitudinal section of hall
    	
Building 3
    	
07/11/2003
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
5)
    	
No. 1031f   front + side view of office + common areas
    	
Building 3
    	
07/11/2003
    	
 
    

 

8. In plans No. 1031b, 1031c and 1031d the surfaces are marked as follows:

 

	
- Buildings   rented to the tenant
    	
yellow
    	
 
    
	
 
    	
 
    	
 
    
	
- Parking spaces   rented to the tenant
    	
green
    	
 
    
	
 
    	
 
    	
 
    
	
- Rented   wrap-around areas
    	
blue
    	
 
    
	
 
    	
 
    	
 
    
	
- Courtyard and   street areas that the tenant uses together with other tenants
    	
red
    	
 
    

 

2

 

§II.

 

Beginning of the rental / Transfer / Term / Termination:

 

1.     The tenancy begins with the transfer of the rental premises, no later than 08/01/2003.

 

2.     For use prior to the 08/01/2003, a supplementary contract governing the following shall be concluded: security service, cleaning, liability for damages, transfer of risk, etc.

 

3.     Upon transfer, a written record that describes the condition of the rental premises upon occupation shall be prepared. This record is to be signed by both contractual parties.

 

4.     The tenancy is firmly concluded for a term of 5 years and 5 months and shall terminate on 12/31/2008 irrespective of the time of transfer.

It may be cancelled by each contractual party, with due observance of a notice period of 12 calendar months, effective at the end of the fixed term of the contract, that is, on 12/31/2008. Cancellation must take place by registered mail, return receipt requested. The day of the postmark shall prevail for the timeliness of the cancellation.

 

5.     If the tenancy is not cancelled according to the deadline pursuant to §II, Paragraph 4, then, after expiration of the fixed agreed contractual term, it shall be extended for an additional 2 years at a time. It can then be cancelled again within a notice period of 12 months, effective at the end of the extended term. This cancellation shall again take place by registered mail, return receipt requested. The date of the postmark shall prevail for the timeliness.

 

6.   Option:

The tenant has the right to extend the lease by 3 years, i.e. from 01/01/2009 until 12/31/2011. A new agreement regarding the rent that applies starting on 01/01/2009 shall be concluded.

 

The tenant must exercise of the option 12 months before expiration of the lease, i.e. by 12/31/2007, via registered mail, return receipt requested. The day of the postmark shall prevail for the timeliness of the option declaration.

 

After the option has been exercised, tenant and landlord shall arrange the new rent though mutual negotiation in good faith.

 

3

 

If an agreement should not be reached by 3 months before the end of the contract, then an independent, sworn expert appointed by the Hanau Chamber of Commerce and Industry shall set the rental price bindingly for both sides. The going rental market rate for equivalent premises in the Hanau / Frankfurt area is to serve as the basis. An arrangement based on the last paid rent is excluded.

 

The tenant and landlord shall share the costs of the arbitration proceedings equally.

 

7. The right to extraordinary termination for good cause remains unaffected.

 

§III.

 

Rent / ancillary expenses plus applicable VAT:

 

1.   The rent payment shall begin on 08/01/2003.

 

2.   Rent

 

The monthly rent is composed as follows:

 

	
a) The ground floor   storage area - hall 3B
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2.871 m2 @ €4.20
    	
 
    	
€
    	
12,058.20
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
b) Office + common   areas - building 3A
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ground floor 
    	
250 m2
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
2nd Floor 
    	
245 m2
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3rd Floor 
    	
244 m2
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
739 m2 @ €7.00
    	
 
    	
€
    	
5,173.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
c) Storage area and   receiving - hall 3B
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
69 m2 @ €2.00 = €138.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Unrented, but tenant must   clean
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
d) Asphalted   wrap-around area
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Foyer courtyard side
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
50 x 5 m = 250 m2 @ €1.00
    	
 
    	
€
    	
250.00
    	
 
    	
 
    	
 
    

 

4

 

	
e)   Truck parking spaces on the ramp
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
3.0   m of x 20 m. 2 spaces @ €220.00 = €440.00
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Unrented,   but tenant must clean
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
f)   Automobile parking spaces
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
asphalted   marked automobile parking spaces
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Front   of office buildings 3A (block reduction)
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20   spaces @ €20.00
    	
 
    	
€
    	
400.00
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net   monthly rent
    	
 
    	
€
    	
17,881.20
    	
 
    	
 
    	
 
    
	
plus   16% VAT
    	
 
    	
€
    	
2,860.99
    	
 
    	
 
    	
 
    
	
Gross monthly rent
    	
 
    	
€
    	
20,742.19
    	
 
    	
 
    	
 
    

 

3. Initial rent:

 

In order to help the tenant start, the monthly rent from 01/08/2003 to 12/31/2004 shall amount to:

 

	
Net rent
    	
 
    	
€
    	
17,881.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
minus discount
    	
 
    	
€
    	
4,499.20
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
reduced net monthly rent
    	
 
    	
€
    	
13,382.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
plus 16% VAT
    	
 
    	
€
    	
2,141.12
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
reduced gross monthly rent
    	
 
    	
€
    	
15,523.12
    	
 
    

 

4. As 01/01/2005, the rent shall be paid according to §III, Paragraph 2.

 

5.  Ancillary expenses

 

a) Heating costs:

 

Building 3B is heated by 2 light oil air heaters from tank 1; office building 3A by one light-oil hot water heater from tank 2. The tenant shall arrange for and pay for the business and maintenance costs incurred from the heating, operating and maintenance costs, e.g. fuel oil, electricity, maintenance, chimney sweep charges, etc. for the heaters.

 

The landlord shall arrange for and pay the repair and upkeep costs for the heating facility incurred from usual wear as well as costs incurred from fulfillment of legal requirements and charges.

 

5

 

b) Electricity

 

The power supply of buildings No. 3A + 3B takes place using the new community transformer plant with measurement of the low voltage in the individual buildings. The transformer station is operated by the Wideflex service company.

 

Electrical consumption is recorded by a meter in building 3B, read off monthly and calculated at the conventional rates of WIDEFLEX, which are calculated on the basis of delivery + measured consumption, line transmission losses, operating and maintenance costs, including depreciation of transformer station, high voltage switching system, low voltage main distribution board, low voltage cable network, secondary distributions, etc.

 

The present price of electricity per KWH of effective electricity, including delivery, amounts to €0.12 plus government electricity taxes EEG [Erneuerbare-Energien-Gesetz, Renewable Energy Act], KWKG [Combined Heat & Power Act, Kraft-Wärme-Kopplungsgesetz] + VAT. WIDEFLEX GmbH reserves the right to adjust the price of electricity in such a manner that it will pass on to the tenant any price reduction or increase offered by the electricity supplier.

 

c) Water / sewage fees:

The water and sewage fees are recorded by separate water meters and, in accordance with the rates of the city of Hanau, will be billed to the tenant for water and sewage together at €4.03 / cbm plus reading expenses + VAT.

 

d) Garbage collection:

If the tenant takes advantage of municipal garbage collection, then the tenant shall pay the costs directly to the garbage collection service.

 

e) Cleaning of the rental areas:

The tenant shall clean the rental areas at weekly intervals in such a manner that the premises will always make an impression of good care.

 

In addition, after a period of 2 years, a cleaning company shall perform a thorough cleaning at the expense of the tenant, so that the standard of tidiness that existed upon transfer remains upheld.

 

f) Property taxes:

The tenant shall assume the property taxes incurred for the rented building No. 3A, as well as 3B, with wrap-around + parking areas.

 

6. Ancillary rental expenses for outdoor installations:

 

The Hanau Industrial Park is a privately operated industrial and commercial area with extensive gate and fence systems, green spaces and lighting installations, etc.

 

6

 

WEDEFLEX GmbH takes care of these common facilities used by all tenants and are keeps them in good condition. The operating and maintenance costs for the outdoor installations, including lighting and security service, are determined for the tenants of the entire Hanau Industrial Park at the end of the year with the expenses verified by an expert, and are apportioned on the basis of heated rental space.

 

This service includes:

 

a) Street cleaning:

Halves of Hafenstrasse and Ehrichstrasse, as well as area of the Hanau Industrial Park along the harbor rail track as per Hanau city statutes.

 

Cleaning the mutually used asphalted private streets, open surfaces and parking places in the Hanau Industrial Park on a basis of up to 26 cleanings per year, including ditch and gully cleaning.

 

b) Winter service:

Performance of winter service (snow areas and strewing ice dispersants) on the rented open surfaces, the commonly used streets, the parking areas and the apportioned local streets.

 

c) Green space:

Care of the green space in the entire Hanau Industrial Park on a basis of approximately 15 mowings in the area of the lawn and embankment surfaces, approximately 6 cultivation efforts in the planted area (conifers and groves), approximately 3 weed removal efforts along the edges of streets and edge area of the hall, including trash pick-up, fertilizing, maintenance of the fences and gates with part-time security service.

 

d) Outside lighting:

Maintenance of the outside lighting and anti-theft lighting, including replacement of used lighting materials, daylight control switches, etc.

 

e) Guard and security service:

Because of its size and the high value goods stored there, the Hanau Industrial Park is closed and lock-controlled on weekdays, Saturdays, Sundays and holidays at about 9:00 PM.

 

The lock service is organized by WIDEFLEX GmbH and is carried out by a security company.

 

The gate keeper of VAC, Ehrichstr. 5, receives a key for the entry gate at Ehrichstrasse 10.

 

7

 

f) Prepayment:

The monthly prepayment amounts to:

 

Usage areas of buildings No. 3A + 3B

 

	
3,610 m2 @ €0.22
    	
 
    	
€
    	
794.20
    	
 
    
	
plus 16 percent VAT
    	
 
    	
€
    	
127.07
    	
 
    
	
 
    	
 
    	
€
    	
921 27
    	
 
    

 

g) It is intended to introduce guard service for the Hanau Industrial Park for halls 1, 2, 3 + 4 during the period from 6:00 PM until 07:00 AM and on Saturdays, Sundays and holidays. WIDEFLEX GmbH will determine a security company through a request for bids and commission it in coordination with the tenant. The tenants shall bear the costs through allocation.

 

7. Sprinklers:

 

Hall No. 3B is protected by a ceiling sprinkler system, protection class BG 4.2 with a watering rate of 7.5 mm / min. A sprinkler center in the basement of building 3C supplies the system.

 

The operating and maintenance costs, e.g. electricity, water, heating, depreciation, visual inspection, weekly alarm testing and biannual examination by VDS or an equivalent organization, e.g. TÜVS [Technical Inspection Association], experts, are apportioned to the tenants of the sprinkler-equipped buildings (halls No. 1, 2 + 3) pro-rated by area and paid for by the respective tenants. The monthly prepayment currently amounts to:

 

Sprinkler-equipped roof deck + shipping of ceiling:

 

	
2,940 m2 @ €0.10
    	
 
    	
€
    	
 294.00
    	
 
    
	
plus 16% VAT
    	
 
    	
€
    	
47.04
    	
 
    
	
 
    	
 
    	
€
    	
341.04
    	
 
    

 

8. a) One-time ancillary expense for address signs:

 

The landlord shall install anodized, engraved aluminum signs 30 x 60 cm. for the Industrial Park signage at the entrance to office building No. 3A and hall 3B, The tenant shall bear the costs for these signs, as well as for their installation and removal after rental.

 

8

 

The costs amount to:

 

	
5 signs of 30 x 60 cm @ €55.00
    	
 
    	
€
    	
275.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
20 parking space signs 50 x 8 cm @ €20.00
    	
 
    	
€
    	
400.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
€
    	
675.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
plus 16% VAT
    	
 
    	
€
    	
108.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
€
    	
783.00
    	
 
    

 

b) Special sign:

 

The tenant is allowed to install a company sign approved by the landlord of approximately 60 x 180 cm on the green strip between the parking space and Ehrichstrasse at a distance of 1.5 m to the fence.

 

The production of the foundation, the frame, etc. are to take place under the construction management of Wideflex GmbH.

 

9. Due date:

 

a) The rent shall be paid in advance to the landlord into an account to be named by him at no charge if paid by 5th business day of the month. Currently, this account is: the rental account of GFW Vermögensverwaltung; account number 34322, Bank Routing Code 795 500 00, Sparkasse Aschaffenburg-Alzenau, 63739 Aschaffenburg, Friedrichstrasse 19.

 

b) The ancillary expenses shall be paid in advance to the account of WIDEFLEX, GmbH, at the branch of the Bayerische Vereinsbank Grossostheim, account number 6815049, Bank Routing Code 795 200 70, at no charge if paid by the 5th business day of the month.

 

10. Billing period ancillary expenses + rent ancillary expenses:

 

The settlement of the ancillary expenses takes place through the housing office of WIDEFLEX, Grossostheim.

 

Electricity costs and water and sewage fees are read and calculated monthly. The rent ancillary expenses for outdoor systems and sprinklers are charged annually. The final settlement shall occur no later than 6 months after the end of the year.

 

11. Benefit clause:

 

The ancillary expenses listed in §III, Paragraphs 5, 6 and 7 correspond to the most favorable customary price of comparable premises.

 

9

 

The landlord pledges that no additional costs beyond these most favorable customary prices shall be charged. The customary most favorable local price within the meaning of this clause shall be determined by a publically employed, sworn expert assigned by the landlord.

 

§IV.

 

Contractual exclusion of set-off / Retention / Rent reduction:

 

Vis-à-vis the landlord’s claims to payment for the rent and the contractually agreed ancillary expenses, an offsetting with counterclaims by the tenant is excluded unless the claim was previously expressly acknowledged in writing on the part of the landlord or legally established by judicial judgment. The exercise of a right to retention by the tenant versus the landlord’s claims for payment from this contract is excluded.

 

A reduction in the rent is then allowable only if the tenant announces in writing, at least one month in advance, its intention to reduce the rent and demands that the landlord eliminate the rental defect within a reasonable time.

 

§  V.

 

Value protection clause:

 

a) The rental fees listed in § III, No. 2 are valid until 12/31/2008.

 

b) In consideration of the long term rental period that is automatically extended in lieu of cancellation, the contracting parties agree that a corresponding adjustment of the rent shall take effect on 01/01/2009 through alteration of the rent, provided the price index of all private households is increased or decreased by 10 points according to information by the Federal Office of Statistics in Wiesbaden vs. the index determined on the reference date = 08/01/2003, based on the base index of 2000 = 100 points.

 

Several increases or decreases shall be calculated together by adding the number of points.

 

10

 

c) If an adjustment in the rent has occurred, then such an adjustment shall again occur if an increase or reduction of at least 10 points has occurred during the further term of the contract vs. the date of the last adjustment.

 

d) In each case of an increase or reduction by 10 points, the last effective rent shall increase or decrease by 1/2% per full index point on the first of the month in which the full 10 points are reached.

 

Example:

If an increase of 10 points ensues during the period from 08/01/2003 to 12/31/2008, then the rent will increase by 10 x 0.5% = 5.0% on 01/01/2009. The same applies to a reduction.

 

§VI.

 

Change of use / sub-rental:

 

1.   Every change of use of the rental premises requires the landlord’s prior written consent. Any officially necessary announcements, notifications or authorizations are exclusively incumbent on the tenant. The landlord shall give the tenant the necessary support.

 

The landlord is entitled to refuse consent if the intended change of use endanger the landlord’s own interests that are worthy of protection.

 

2.   The landlord’s prior written consent is required for sub-rental.

 

§VII.

 

Installations and other measures for the use of the rental premises

 

1.  The tenant is obligated to treat the rental premises carefully and gently.

 

2.  Emission limits: The rental premises are located on the waterfront beside a mixed-use area. The following limits currently apply:

 

The storage area in hall 3B can be operated 24 h. Maximum emission in hall 3B = 78 dB (A).

 

11

 

In the period from 10:00 PM - 6:00 AM, the windows and the gate to the harbor railway track must be kept locked.

 

During the period from 6:00 AM - 10:00 PM, truck frequency is restricted to 30 deliveries/pick-ups.

 

Between 10:00 PM and 6:00 AM, no truck traffic shall take place, except in emergencies.

 

3.  The tenant is entitled to perform necessary installations that are normal for the purpose of the rental, subject to the following Paragraphs 4 and 5, at his own expense.

 

For all architectural alterations during the rental period, the tenant must obtain the landlord’s prior written consent with an enclosure of plans.

 

The landlord is entitled to refuse consent if the planned measures impair his interests or endanger the rental premises. The tenant shall assume the obligation to reverse the constructional changes and the associated costs for all installations, e.g. shelving and cable networks, etc.

 

4.  Palette shelving: After presenting plans and obtaining the approval of the landlord, the tenant shall be allowed to install palette shelving on U-300 loaders up to a maximum storage height of 6.5 m.

 

The load capacity of the hall flooring amounts to 5,000 kg/m2 = 0.5 kg/cm2 of an equally distributed surface load. If this surface load is exceeded, then load dividers of, for example, U-300 rails or in the case of machines, load dividing steel plates, are to be used. Allowable total pressure between load dividers and asphalt flooring = 6 kg / cm2.

 

5.  The tenant shall bear all costs possibly incurred by the landlord, such as planning costs, license fees, contributions, investment costs, etc. for installations and facilities on the part of the tenant.

 

Should development and/or connection costs be incurred as a result of the tenant’s installations, the tenant shall reimburse the landlord for these.

 

To the extent that installations and rebuilding by the tenant impair the usage of the rental premises, a decrease in the rent is excluded.

 

6.  Use of lifting appliances:

Only electrically powered forklifts may be used in hall 3B. Forklifts with combustion engines are not allowed. Only 4-wheel forklifts with air tires be used in the hall, and their contact surface pressure, that is, tires to hall flooring, may not exceed 6 kg / cm2. The use of 3-wheeled forklifts with rear-drive is excluded. Only hand lifting carts, electric pallet trucks, etc. can then be used, if the allowable contact surface pressure of 6 kg / cm2 is not exceeded.

 

12

 

§ VIII.

 

Liability of the contracting parties / Fire insurance
costs / Maintenance:

 

1.   Damages
that appear on the rental premises are to be immediately announced to the
landlord. Damages to the rental premises are to be categorically eliminated by
the tenant. If there is imminent danger, then the tenant should initiate the
necessary measures at the landlord’s expense. The tenant must, however, inform
the landlord by telephone in advance.

 

2.   The tenant
shall be liable for minor and small repairs up to €200.00 in individual cases,
not to exceed an annual amount of € 2,000.00 during a calendar year. They
are to be carried out and paid for by the tenant.

 

3.   The tenant
shall carry liability insurance for the operation of office building No. 3A
and warehouse No. 3B, including the surrounding streets, open, parking and
additional areas.

 

4.   The tenant
bears the risk for fire, water, also rainwater, storms, break-ins, theft, etc,
for the goods brought into the rental areas and for damages to the buildings
originating from break-in and theft, as well as vandalism. Upon request, the
tenant must prove to the landlord that it has concluded the pertinent
insurance. To the extent that a risk cannot be insured by the tenant, the
landlord shall contract the insurance. The tenant shall bear the costs
(premiums) arising from this.

 

5.   The
landlord carries the building fire insurance with respect to the empty
building. The tenant carries the increase in premium in the building fire
insurance arising from the commercial use. The landlord shall present the
tenant with the building fire insurance premium and also calculate the increase
for the tenant, presenting a copy of the premium invoice. The additionally calculated
premium amount is due upon billing.

 

6.   Waiver
of recourse:

In the case of injuries to persons or damages to things, or assets for
which the landlord or WIDEFLEX GmbH and their employees are responsible, e.g.
fire or explosion, the tenant and his insurance waive claims against these, in
so far as the total damage exceeds the coverage obligation of the landlord’s
liability insurance as well as that of WIDEFLEX.

 

This coverage obligation amounts to € 5.0 million for personal injury +
material damages, € 0.5 million for property damages. The tenant is to prove
waiver of recourse to his insurance upon request by the landlord.

 

13

 

7.   The
landlord shall carry out and pay for repairs of the rental premises caused by
wear, e.g. roofing, walls, floors, windows, doors, gates, heaters, sanitation
facilities, electrical systems (not lighting and lighting materials), etc.

 

Renovation of the carpet flooring due to wear shall
be performed by the landlord at the tenant’s expense.

 

If the tenant damaged and/or altered the rental
premises, then elimination of the damage is to be carried out by the landlord.
The repair costs are to be paid by the tenant. This also applies to damages
that are created by suppliers, customers, visitors or employees or others of
the tenant’s persons.

 

8.   The
building is to be handed over in renovated condition with new lighting elements
in accordance with the transfer record.

 

9.   The tenant
shall carry out cosmetic repairs of the rental premises that arise through
contractually appropriate use, e.g. painting, including necessary preparation,
in the interior of the buildings, arranged by the tenant during the rental
period. Such work shall be carried out at intervals of at least 5 years or
earlier if necessary, so that the building always provides the impression of
being clean and well-maintained.

 

Upon the transaction of cosmetic repairs, materials
that are the same in color and quality, as upon arrival, are to be used. The
tenant is to receive a description of the dispersion paint and the polyurethane
lacquer.

 

10. Tenant and
landlord are obligated to keep the common entry and exit routes and fire
department accesses open at all times.

 

§  IX.

 

Court of arbitration agreement:

 

For the elimination of disagreements between tenant and landlord over
the amount of the rent, repair costs, etc. the following court of
arbitration agreement is concluded:

 

Each side shall name a BTE expert as a referee. These will pick another
BTE expert before the beginning of the procedure as a chief referee. Both
referees will prepare an expert opinion together and try to agree. If no
agreement should come about, the chief referee shall decide bindingly and
finally.

 

The costs of the procedure are carried by both sides, shared equally by
way of amicable agreement. Upon a decision by the chief referee, the losing
party shall carry the costs.

 

14

 

§ X.

 

Surety:

 

a)   For the
protection of all claims of GFW VERMÖGENSVERWALTUNG arising from
this lease, the tenant shall submit a directly enforceable, unconditional,
time-unlimited security payable on first demand drawn on a major German bank, savings
bank or public legal regional bank in the amount of €160,000.00.

 

The fulfillment of this obligation is a prerequisite for the validity
of this contract. GFW VERMÖGENSVERWALTUNG commits
itself to store this security document and not to grant a loan on it or pass it
on.

 

GFW VERMÖGENSVERWALTUNG shall assume 50% of the commission to
be paid by the tenants for the bank security; but not to exceed 0.5% per annum
from the security sum of €160,000.00.

 

The tenant invoices the landlord for this participation in the
commission for the guarantee 3 months after the beginning of each rental year.

 

Return: Pending non-utilization, the landlord agrees to return the
security on 02/28/2009.

 

b)   Landlord
and tenant intend to replace the security with a letter of intent from the
parent company, the amount and extent of liability of which is yet to be
declared.

 

XI.

 

Completion of the tenancy / Return / Compensation:

 

1.   At the end
of the tenancy, the rental premises shall be emptied and thoroughly cleaned by
good professional companies and renovated again for return. For the renovation,
the same materials in color and quality, present upon entry, are to be used.
The tenant is to receive a description of the dispersion paint and the
polyurethane lacquer.

 

2.   The
landlord is willing to carry out the thorough cleaning and renovation through
professional companies subject to the construction management of Wideflex GmbH
in return for reimbursement of the costs.

 

3.   Repair
costs for the elimination of damages to the rental premises, that, e.g.,
originated through the dismantling of the tenant’s business facilities, are to
be reported to the landlord.

 

4.   The
premises are to be handed over with new lighting elements. Upon return of the
building, the tenant shall reimburse the landlord for the costs or replacing
the lights.

 

15

 

5.   Upon
return of the rental premises, a written transfer record shall be prepared and
signed by the participants. The condition of the rental premises must be in
accord with this upon its return.

 

§XII.

 

Other agreements:

 

1.   During
office hours, the landlord himself or his authorized agents are entitled, after
prior announcement, to view the rental premises.

 

2.   After
announcement of such, the service company WIDEFLEX is entitled to enter the
building for the purpose of conducting service work and readings at the end of
the month.

 

3.   The tenant
shall give Wideflex property management a set of keys in a sealed envelope,
which will be stored in the safe, for fulfilling official duties in case of
danger (fire, breaking of water pipes, short circuits, etc.).

 

The key is to be used only in the event of immediate danger and under
supervision. On the following day, the usage shall be reported to the tenant
and the keys will again be handed over to the housing office for storage in a
re-sealed envelope. The tenant has the right to inspect the seal.

 

4.   Security
keys: At his expense, the tenant shall install a locking system in the
access and storey doors in buildings No. 3A and 3B. The heating room door
is to receive a cylinder from the Wideflex locking system. The tenant shall
receive a key.

 

5.   Only Mr. Georg
A. Wissler, Babenhäuser Strasse 4. 63762 Grossostheim. is authorized to make
legally valid statements to the tenant and to receive all declarations on the
part of the tenant vis-à-vis the landlord.

 

6.   Should any
provision of this be or become invalid, the remaining provisions shall remain
unaffected thereby. The contractual parties are to replace the invalid provision
with a valid provision that comes as close as possible to the meaning and
economic purpose of the original provision.

 

7.   Changes
and additions to this contract, including revocation of this requirement of
written form itself, must be in writing to be valid.

 

16

 

8.   Aschaffenburg
is the site of jurisdiction and venue and place of performance for all
obligations arising from this contract for both contracting parties.

 

9.   ENCLOSURES:

 

The following are enclosed with this contract:

 

	
  1)

  	
  No. 1031b layout

  	
  Building 3

  	
  07/11/2003

  
	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
  No. 1031c ground plan + side view of hall

  	
  Building 3

  	
  07/11/2003

  
	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
  No. 1031d ground plan of office + common areas

  	
  Building 3

  	
  07/11/2003

  
	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
  No. 1031e cross section + longitudinal section of hall

  	
  Building 3

  	
  07/11/2003

  
	
   

  	
   

  	
   

  	
   

  
	
  5)

  	
  No. 1031f façade + side view of office + common areas

  	
  Building 3

  	
  07/11/2003

  

 

 

	
  Grossostheim, 07/11/2003

  	
   

  	
  Hanau, 07/24/2003

  
	
  /s/ Georg A. Wissler

  	
   

  	
  /s/ Burkhard Prause

  
	
   

  	
   

  	
   

  
	
  GFW Vermögensverwaltung

  	
   

  	
   

  
	
  Georg + Frits Wissler GbR

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  European Advanced Superconductors GmbH & Co. KG

  
	
   

  	
   

  	
  Ehrichstrasse 5, D 63450 Hanau

  
	
   

  	
   

  	
  European Advanced
  Superconductors GmbH & Co. KG

  

 

17

 

Copy: Bldg. 3 C
IHP [Industrial Park] Hanau dated 07/21/2008

 

LEASE

 

	
   

  	
  Between

  	
  [Handwritten:
  Attachment 1b]

  

 

GFW VERMÖGENSVERWALTUNG Georg and Fritz Wissler GbR.

Babenhäuser Strasse 4, 63762 Grossostheim

Telephone 06026/97470, Fax 06026/974740,

represented by
General Manager Georg A. Wissler

 

	
   

  	
  - LANDLORD -

  

 

and

 

European Advanced
Superconductors GmbH & Co. KG

Ehrichstrasse 10, 63450 Hanau

Phone 0 61 81 / 4384-4100, Fax 0 61 81 / 4384-4400,

represented by its
General Managers Dr. Burkhard Prause and

and Dr. Klaus Schlenga

 

	
   

  	
  -
  TENANT -

  

 

the following LEASE is concluded:

 

§ 1. Rental premises

 

1.1 As owner, the
landlord shall rent the tenant a partial area of 1,180 m2 of the 2,660m2-sized
ground level of the recently renovated production and warehouse No. 3C in
the Hanau Industrial Park, Hafenstrasse 15, 63450 Hanau.

 

1.2 The rented
partial area is separated from the remaining partial area of building 3C by a
wire fence with privacy screen. Access to the rental premises takes place
through rolling gate No. 4 as well as through the steel doors next to
rolling gate No. 4.

 

1.3 The total
rented area amounts to 1,180 m2.
The arrangement of the co-rented wrap-around area is evident from layout
No. 1034b, enclosed as Attachment 2.

 

1.4. According to
DIN 277, upon a request from the tenant, the tenant and landlord shall jointly
measure the rental area by no later than 01/10/2008; otherwise the cubic meters
inserted in §1.1 shall apply.

 

1

 

1.5 The spatial
division of the rental area follows from the enclosed signed plans of the
07/02/2008, which are the basis of this contract, consisting of:

 

	
  No. 1034a

  	
  Area plan of
  Hanau Industrial Park

  
	
   

  	
   

  
	
  No. 1034b

  	
  Layout of hall
  3C

  
	
   

  	
   

  
	
  No. 1034c

  	
  Ground plan of
  hall 3C

  
	
   

  	
   

  
	
  No. 1034d

  	
  Side views of
  hall 3C rear and front view

  
	
   

  	
   

  
	
  No. 1034e

  	
  Cross section +
  longitudinal section of hall 3C

  

 

1.6 In layout
No. 1034b, the areas are designated as follows:

 

	
  - Buildings
  rented to the tenant

  	
  yellow

  
	
   

  	
   

  
	
  - Rented
  wrap-around areas

  	
  blue

  
	
   

  	
   

  
	
  - Courtyard and
  street surfaces that the tenant uses together with the other tenants in the
  Hanau Industrial Park for entering

  
	
  and exiting.

  	
  red

  

 

§ 2 Purpose of the rental

 

The rental shall
be used for storing documentation, packaging material and machine parts.

 

Any change in use
requires the landlord’s prior written consent. The tenant shall be responsible
for any officially necessary announcements, notifications or authorizations
with the agreement of the landlord. The landlord is entitled to refuse consent
if the intended change of use endanger the landlord’s own interests that are
worthy of protection.

 

§ 3 Term of the rental / Transfer /
Cancellation

 

3.1 Tenancy begins
on 06/30/2008 and is firmly concluded for a term of 3 years and 6 months, i.e.
until 12/31/2011.

 

3.2 The landlord
and/or his authorized agents shall install the fence system and perform the
necessary electronic work within the first two months after initiation of the
rental. The landlord and/or his authorized agents are entitled to enter the rental
premises for this purpose in coordination with the tenant.

 

3.3. Upon transfer
of the rental premises, a written record that describes the condition of the
rental premises shall be prepared. This record is to be signed by both
contracting parties.

 

2

 

3.4 It may be
cancelled by each contractual party, with due observance of a notice period of
12 calendar months, effective at the end of the fixed term of the contract,
that is, on 12/31/2011. The cancellation must take place by registered mail,
return receipt requested. The day of the postmark shall prevail for the
timeliness of the cancellation.

 

3.5 If the tenancy
is not cancelled in a timely fashion as per §3.4, then, after expiration of the
fixed agreed contractual term, it shall be extended for an additional 2 years
at a time. It can then be cancelled again with a notice period of 12 months,
effective at the end of the extended term. This cancellation must take place by
registered mail, return receipt requested. The day of the postmark shall
prevail for the timeliness.

 

3.6 Special right of termination:

Irrespective of
the foregoing regulations, a unique special right of termination is afforded
the tenant for the first time after 18 months, that is, on 12/31/2009, in the
event that the tenant relinquishes the location in Hanau. This special
termination must take place in writing by registered mail, return receipt
requested, with observance of a notice period of 12 months, that is, no later
than l2/31/2008. The day of the postmark shall prevail for the timeliness.

 

3.7 The tenant and
landlord are to agree in mutually loyal negotiation to a new rental price to
take effect on 01/01/2012.

 

If an agreement
should not be reached by 3 months before the end of the contract, then an
independent, sworn expert appointed by the Hanau Chamber of Commerce and
Industry shall set the rental price bindingly for both sides. The going rental
market rate for equivalent premises in the Hanau / Frankfurt area is to serve
as the basis.

 

The tenant and
landlord shall share the costs of the arbitration process equally.

 

3.8 The right to
extraordinary termination for good cause remains unaffected by the foregoing
regulations.

 

3.9 If the tenant
continues the use of the rental premises after the end of the rental period,
then the tenancy is not regarded as extended. §545 of the German Federal Civil
Code is excluded. Continuation and renewal of the tenancy after its expiration
must be arranged in writing anew.

 

§ 4 Rent / ancillary expenses

 

4.1 Starting
rent:

 

In order to help
the tenant start, the monthly rent for the period from 06/30/2008 to 12/31/2009
shall amount to:

 

3

 

	
  a) Usable hall
  area on ground floor, hall 3C

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1,180 m2 @ €3.00

  	
   

  	
  €

  	
  3,540.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b) Hall court
  yard side

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40 x 5 m = 200 m2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  200 m2 @ € 0.50

  	
   

  	
  €

  	
  100.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  reduced monthly rent

  	
   

  	
  €

  	
  3,640.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  plus 19% VAT

  	
   

  	
  €

  	
  691.60

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  reduced total monthly rent

  	
   

  	
  €

  	
  4,331.60

  	
   

  	
   

  	
   

  

 

4.2 From
01/01/2010 to 12/31/2011 the monthly rent shall be composed as follows:

 

	
  a) Usable hall area on ground floor, hall 3C

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1,180 m2 @ € 3.80

  	
   

  	
  €

  	
  4,484.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  b) Wrap-around area court yard side

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40 x 5 m = 200 m2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  200 m2 @ € 0.50

  	
   

  	
  €

  	
  100.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Monthly rent

  	
   

  	
  €

  	
  4,584.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  plus 19% VAT

  	
   

  	
  €

  	
  870.96

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total monthly rent

  	
   

  	
  €

  	
  5,454.96

  	
   

  	
   

  	
   

  

 

4.3 In addition to
the total monthly rent, the following ancillary expenses are to be paid by the
tenant:

 

a) Heating
costs: Building No. 3C is heated by 2 light-oil-fueled air heaters.
One air heater is in the portion of the hall rented by the tenant; another air
heater is presently in the unrented portion of the hall.

 

The following
regulation applies until rental of the remaining partial area of 3C: The entire hall 3C will be heated at
12° C in order to avoid damage to the hall structure.

 

The oil
consumption of the two air heaters is recorded by oil meters. The sum of these
two meters shall be apportioned between the tenant and the landlord per m2 of heated hall area. The same applies for the
costs of refueling as well as the incurred operating and maintenance costs,
e.g. fuel oil, electricity, burner maintenance, boiler maintenance, chimney
sweeps, etc. WIDEFLEX GmbH will purchase the oil centrally.

 

4

 

At the rented
residual surface, building 3C, the following regulation applies:

Twenty percent of
the heating costs will be charged to the users of the hall on the basis of the
consumption measured by the respective oil meters, while the remaining 80% of
the heating costs will be proportionately charged to the respective users of
the hall per m2 of their rental area.

 

The same shall
apply to the costs of refueling as well as the incurred operational and
maintenance costs, e.g. fuel oil, electricity, burner maintenance, boiler
maintenance, chimney sweeps, etc. WIDEFLEX GmbH will purchase the oil
centrally.

 

With respect to
both of the above regulations, the landlord shall arrange for and pay the
repair and upkeep costs for the heating facility incurred by usual wear as well
as costs incurred by fulfillment of legal requirements and charges.

 

b) Outdoor
facilities: WIDEFLEX GmbH takes care of the communal installations used by
all tenants of the Industrial Park South and keeps them in good condition.
These consist of:

 

·  Street
cleaning: Cleaning of equal parts along Hafenstrasse and Ehrichstrasse as
well as surfaces along the harbor rail track of the communal street, Stockstädter
Strasse. Cleaning of the private streets, open areas, wrap-around areas and
park areas in the Hanau Industrial Park including ditch and gully cleaning
according to the statutes of the city of Hanau

 

·  Winter
service: Performance of winter service (snow areas and strewing ice
dispersants) in the rented open surfaces, the communally used streets, the
parking areas and the apportioned local streets.

 

·  Green
space: Care of the green space in the entire Hanau Industrial Park,
including waste elimination, fertilizing, maintenance of the fence installation
and the gates with apportioned security services.

 

·  Outside
lighting: Maintenance of the outside lighting and anti-theft lighting,
including replacement of used lighting materials, daylight control
switches, etc.

 

·  Control
and locking services: Because of its size and the high value goods stored
there, the Hanau Industrial Park is closed and lock-controlled on weekdays,
Saturdays, Sundays and holidays at about 9:00 PM.

 

The locking
service is organized by WIDEFLEX GmbH and is carried out by a security company.

 

Prepayment:

The monthly
prepayment amounts to:

 

5

 

	
  Usable surface for building No. 3C

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1,180 m2 at € 0.20

  	
   

  	
  €

  	
  236.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  plus 19% VAT

  	
   

  	
  €

  	
  44.84

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  €

  	
  280.84

  	
   

  	
   

  	
   

  

 

c) Sprinklers:

 

Hall No. 3C
is protected by a ceiling sprinkler system, protection class Bg. 4.2 with a
watering rate of 7.5 mm / min. The system was erected with due observance of
the technical guidelines of the VDS and is supplied by a communal center under
building No. 3C. WIDEFLEX GmbH operates the sprinkler center.

 

The operating and
maintenance costs, e.g. electricity, water, fuel, heater, depreciation, daily
visual monitoring, weekly alarm testing, annual inspection by VDS or an
equivalent organization, such as, e.g. TÜV, experts, are apportioned to the
tenants of the sprinkler-equipped buildings (halls No. 1 + 2 + 3) by
proportionate surface area and are to be paid by the respective tenant.

 

Prepayment:

The current
monthly prepayment in relation to the sprinkler-equipped ceiling surface
amounts to:

 

	
  1.180 m2 @ € 0.10

  	
   

  	
  €

  	
  118.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  plus 19% VAT

  	
   

  	
  €

  	
  22.42

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  €

  	
  140.42

  	
   

  	
   

  	
   

  

 

d) The current
monthly ancillary expense prepayments taken together amount to € 421.26,
including VAT

 

4.5 Due dates

 

a)
The rent shall be paid in advance to the landlord into an account to be named
by him at no charge by 5th business day of the month. Currently, this
account is the rental account of GFW Vermögensverwaltung, account
No. 34322, bank code no. 795 500 00, Sparkasse Aschaffenburg-Alzenau,
63739 Aschaffenburg, Friedrichstrasse 19.

 

b)
The ancillary expenses shall be paid in advance to the account of WIDEFLEX,
GmbH, at the branch of the Bayerische HypoVereinsbank Grossostheim, account
number 6815049, Bank Routing Code 795 200 70, at no charge if paid by the 5th business day of
the month.

 

6

 

4.6           Settlement
of the ancillary rental expenses:

 

The ancillary
rental expenses listed under paragraph 4.4 are to be charged proportionately
through WIDEFLEX GmbH as follows. The prepayments are credited to the final
settlement:

 

a)
The billing period for the heating costs is from 06/01 until 05/31 of the
subsequent year. The final settlement shall take place no later than 12 months
after the end of the billing period.

 

b)
The billing period for the remaining ancillary rental expenses is the calendar
year of 12 months. The final settlement shall take place no later than 12
months after the end of the billing period.

 

§ 5 Electricity delivery contract

 

Electricity
delivery takes place through WIDEFLEX GmbH. Upon signing this contract, this
will be regarded as a delivery contract for electricity between EAS, Hanau, and
WIDEFLEX GmbH for the rental premises in the partial area of 3C.

 

Electricity:

The power supply
for building No. 3C with a connected load of approximately 300 kilowatts
takes place via the 800 KVA communal transformer plant with measurement of the
low voltage in the individual buildings. The transformer station is operated by
WIDEFLEX GmbH.

 

The electricity
use is recorded by meters in building No. 3C, read monthly and is
calculated at the conventional rates of WIDEFLEX GmbH, consisting of delivery +
measured consumption, transformer + line transmission losses, operating and
maintenance costs, including depreciation of the transformer station, high
voltage switching system, low voltage main distribution board, low voltage
cable network, secondary distributions, etc.

 

The present price
of electricity per kWh of effective electricity, including delivery, amounts to
€0.1403 plus applicable fees such as government electricity taxes (EEG, KWKG) +
VAT. WIDEFLEX GmbH reserves the right to adjust the price of electricity in
such a way that it will pass on to the tenant any price reduction or increase
offered by the electricity supplier.

 

§ 6 Benefit clause

 

The ancillary
expenses named in §4.4 correspond to the most favorable customary price of
comparable industrial parks in Hanau.

 

The landlord
pledges that no additional costs beyond this most favorable customary price
shall be charged. The customary most favorable local price within the meaning
of this clause shall be determined by a publically employed, sworn expert
assigned by the landlord.

 

7

 

§ 7 Property taxes / Deposit fee

 

7.1 The tenant
assumes the proportionately accruing property taxes for a surface area of 1,180
m2 + wrap-around area of 200 m2 for the property parcel No. 071-20/24 for
the amount of currently approximately €274.17 per month.

 

7.2 Since
01/01/2004, the city of Hanau has levied a charge for rainwater. The
proportionately calculated costs from this in the amount of approximately
€485.88 per month for the entire rental premises on the property parcel
No. 071-20/24 are to be proportionately assumed by the tenants. WIDEFLEX
GmbH brought a suit against this decision. If the suit should not be upheld,
then the proportionate fees incurred by the tenants shall be determined by a
subsequent billing supplementary to this settlement.

 

§8

Contractual Exclusion of Set-Off / Retention / Rent Reduction:

 

Vis-à-vis the
landlord’s claims to payment for the rent and the contractually agreed
ancillary expenses, an offsetting with counterclaims by the tenant is excluded,
unless the claim was previously expressly acknowledged in writing on the part
of the landlord or legally established by judicial judgment. The exercise of a
right to retention by the tenant versus the landlord’s claims for payment from
this contract is excluded.

 

A reduction in the
rent is then allowable only if the tenant announces in writing, at least one
month in advance, its intention to reduce the rent and demands that the
landlord eliminate the rental defect within a reasonable time.

 

§ 9 Sub-rental

 

The landlord’s
prior written consent is required for sub-rental. The landlord is entitled to
withhold his consent given serious reasons that reside in the person or company
of the subtenant.

 

§ 10 Installations and other measures
for the use of the rental premises

 

10.1 The tenant is
obligated to treat the rental premises carefully and gently.

 

10.2 Emission
limits: The rental premises are located on the waterfront of the city of
Hanau that operates 24 hours a day. Emission guidelines are assigned:

 

a) On all sides
around the line of the harbor railway running around the industrial premises
between the northeastern side of the company grounds and harbor basin situated
on the southwest:

 

	
  days (6:00 AM to 10:00 PM)

  	
  67 dB (A)

  
	
  nights (10:00 PM to 6:00 AM)

  	
  67 dB (A)

  

 

8

 

b) between line of
the harbor railway running northeast of the company grounds and Kinzigheimer
Weg:

 

	
  days (6:00 AM to 10:00 PM)

  	
  62 dB (A)

  
	
  nights (10:00 PM to 6:00 AM)

  	
  47 dB (A),
  (windows and doors on the north side are to be kept locked)

  

 

10.3 Shelving:
After presenting plans and obtaining the landlord’s consent, the tenant shall
be allowed to install shelves up to a height of 6.20 m (top edge), in which
case the shelf feet are to be placed on U 300 weight dividers (according to the
photo, Attachment No. 6).

 

Storage up to a
storage height of 6.20 m (top edge); however a maximum up to the limit of the
VDS ceiling sprinkler system, protection class BG 4.2, water installment of 7.5
mm is possible.

 

10.4 Hall
flooring: The load capacity of the hall flooring amounts to 5,000 kg/m2 = 0.5 kg/cm2 of
surface load. The allowable contact surface pressure between wheels and the
floor plate is restricted to 8 kg / cm2.
If higher point loads are necessary, then load distributing steel plates are to
be used. For the shelves, U300 pressure distribution rails are to be used.

 

10.5 Use of
forklifts / transportation and lifting equipment:

The allowable
contact surface pressure of the hall flooring amounts to 8 kg / cm2. The use of 3-wheeled, reach trucks with small, hard
rollers that have a contact surface pressure of up to 50 kg / cm2 is not allowed. In the hall, pneumatic-tired
4-wheeled forklifts with a pressure strain of up to 6 kg / cm2 may be used. The use of other forklifts and electric
pallet trucks with a contact surface pressure < 6 kg / cm2 is allowed only if the vehicles are parked on
pressure-distributing, 5-mm-thick steel sheet metal during the night and during
breaks and/or while not being operated. Upon termination of the lease, the
landlord shall not hold the tenant liable for ruts / damage to the flooring up
to a depth of 2 mm.

 

10.6 The tenant is
entitled to undertake installations that are necessary for the purpose of the
rental at his own expense. For necessary structural changes during the rental
period, the tenant must obtain the landlord’s written consent in advance upon
submission of the plans. The landlord is entitled to refuse consent if the
planned measures impair his interests or endanger the rental premises. To the
extent that use of the rental premises is affected by this remodeling, a
reduction in rent is excluded. For all installations, the tenant shall reverse
the structural changes and assume the associated costs.

 

9

 

10.7 The tenant is
responsible for cleaning the rental areas. The cleaning is to be carried out at
weekly intervals in such a way that the rental premises will always make an
impression of good care.

 

The landlord
recommends that the tenant let the building be thoroughly cleaned by a building
cleaning company at regular intervals at the tenant’s expense such that the
standard of tidiness that existed upon transfer is upheld.

 

10.8 The tenant
and the landlord commit themselves to keep the common entry and passage ways
open. In addition, care shall be taken that approaches, exit ways and circular
ways are kept open, especially for fire fighters.

 

§ 11

Minor repairs, Cosmetic repairs

 

11.1 Damages that
appear on the rental premises are to be immediately announced to the landlord.
If there is imminent danger, then the tenant should initiate the necessary
measures at the landlord’s expense. The tenant is, however, to inform the
landlord by telephone in advance.

 

11.2 The landlord
shall carry out and pay for necessary repairs of the roof and walls (all work
that pertains to maintenance of the substance of the building, that is, the
exterior walls, the weight-bearing parts / walls, the foundation, the outside
façade, etc.). If the tenant is also responsible for damages to the roof
and walls of the rental premises, then he must reimburse the landlord for these
repair costs. This also applies to damages that are created by suppliers,
customers, visitors or work forces and other persons of the tenant.

 

The landlord shall
assume the costs for repairing ruts in the asphalt flooring of up to a depth of
a maximum of 2 mm. The tenant shall assume the repair costs for restoring the
asphalt flooring for ruts in excess of 2 mm.

 

11.3 The tenant
shall bear the cost of minor and small repairs in the rental premises, provided
the costs do not exceed €200.00 in the individual case. The tenant’s total
obligation for costs for minor and small repairs that he is to bear is
restricted to a limit of € 2,000.00 per calendar year.

 

11.4 The tenant is
to carry out the necessary cosmetic repairs, e.g. painting, including necessary
preparatory work, in the interior of the building during the duration of the
rental period at his expense. These are normally to be carried out at an
interval of 5 years after initiation of the rental or after the last cosmetic
repairs were carried out. The tenant may exceed this interval if it is
objectively unnecessary to make cosmetic repairs at the expiration of this time
period. The building shall be handed over in accordance with the transfer
protocol in newly renovated condition with new lighting elements.

 

10

 

When making
cosmetic repairs, the same materials with the same quality are to be used as
were present upon moving in. The tenant shall receive a description of the pure
acrylic latex façade paint, polyurethane lacquer, etc. recommended by the
landlord,

 

§ 11.5 For
termination of the tenancy, §15.1 of this contract applies.

 

§ 12 Liability of the contracting
parties / Insurance

 

12.1 The tenant
shall carry liability insurance for the operation of warehouse No. 3C,
including the surrounding streets, open, parking and other areas.

 

12.2 The tenant
bears the risk for fire, water, including rainwater, storms, break-ins, theft,
etc, for the goods brought into the rental areas and for damages to the
buildings arising from break-in and theft, as well as vandalism. Upon request,
the tenant must prove to the landlord that it has concluded the pertinent
insurance. To the extent that a risk cannot be insured by the tenant, the
landlord shall contract the insurance. The tenant shall bear the costs
(premiums) arising from this.

 

12.3 The landlord
carries the building fire insurance with respect to the empty building. The
tenant carries the increase in premium that arises from the building fire
insurance. The landlord shall present the tenant with the building fire
insurance premium and also calculate the increase for the tenant, presenting a
copy of the premium invoice. The additionally calculated premium amount is due
upon billing.

 

12.4. Waiver of
recourse:

In the case of
injury to persons or damages to things, or assets for which the landlord or
WIDEFLEX GmbH and their employees are responsible, e.g. fire or explosion, the
tenant and his insurance waive claims against these, in so far as the total
damage exceeds the coverage obligation of the landlord’s liability insurance as
well as that of WIDEFLEX. This coverage obligation amounts to € 5.0 million for
personal injury + material damages, € 0.5 million for property damages. The
tenant is to prove waiver of recourse to his insurance upon request by the landlord.

 

§ 13 Arbitration Agreement

 

For the
elimination of disagreements between tenant and landlord over the amount of the
rent, repair costs, etc. the following court of arbitration agreement is
concluded:

 

11

 

Each side shall
name a BTE expert as a referee. These will pick another BTE expert before the
beginning of the procedure as a chief referee. Both referees will prepare an
expert opinion together and try to agree. If no agreement should come about, the
chief referee shall decide bindingly and finally.

 

The costs of the
procedure are carried by both sides, shared equally by way of amicable
agreement. Upon a decision by the chief referee, the losing party shall carry
the costs.

 

§ 14 Letter of intent

 

For the protection
of all claims of GFW Vermögensverwaltung, Georg + Fritz Wissler GbR from this
lease, the tenant’s parent company, Bruker Biospin GmbH, Rheinstetten, is to
hand over a letter of intent in the amount of €30,000.00.

 

Since the letter
of intent already handed over to lease buildings 3a/b in the amount of
€160,000.00 dated 07/23/2003 will expire on the basis of its temporal deadline
on the 12/31/2008, the tenant and landlord agree that, instead of a new
additional letter of intent, the tenant shall hand over identical similar total
letter of intent for buildings 3a/b + partial area 3C in the amount of €190,000.00
to take effect on 01/01/2009.

 

§ 15 Termination of tenancy / Return

 

15.1 At the end of
the tenancy, the tenant shall carry out the cosmetic repairs due and not yet
executed according to § 11.4 upon request of the landlord before returning the
rental premises in so far as these are necessary to return the rental premises
in a suitable condition according to the contract.

 

15.2 The landlord
shall be reimbursed for repair costs for the elimination of damages to the
rental premises that originated in the course of dismantling the tenant’s
business facilities.

 

15.3 The premises
are to be handed over with new lighting elements. Upon return of the rental
premises, the tenant shall refund the cost for the necessary replacement of
lighting elements with new ones.

 

15.4 The
regulations agreed upon in § 10 of this contract apply to any structural
changes that may have been performed.

 

15.5 The
participants shall prepare and sign a written transfer record for return of the
rental premises. The condition of the rental premises upon return must follow
from this.

 

12

 

§ 16 Other Agreements

 

16.1 For important
reasons, the landlord or those commissioned by him are entitled to view the
rental premises during office hours after prior timely announcement.

 

16.2 WIDEFLEX GmbH
is entitled to enter the rental areas for the purpose of conducting service
work and readings at the end of the month.

 

16.3 For opening
hall 3C in the event of danger (fires, broken water pipes, blackouts, etc.),
the tenant shall give WIDEFLEX GmbH a set of keys in a sealed envelope, which
will be stored in the safe.

 

The General
Manager of WIDEFLEX GmbH shall use this key only in the event of immediate
danger and under supervision. On the following day, the usage shall be reported
to the tenant and the keys will again be handed over to WIDEFLEX GmbH for
storage in a re-sealed envelope. The tenant has the right to inspect the seal.

 

16.4 Only the
landlord’s General Manager, Mr. Georg A. Wissler, Babenhäuser Strasse 4.
63762 Grossostheim. is authorized to make legally valid statements to the
tenant and to receive all declarations on the part of the tenant vis-à-vis the
landlord. This shall also apply in the event the landlord appoints another
General Manager.

 

16.5 Should any
provision of this contract be or become invalid, the remaining provisions shall
remain unaffected thereby. In such a case the parties will negotiate with each
other with the aim of agreeing to such an effective provision as the parties
would have agreed to had they known of the defect at the time the contract was
signed, in order to achieve the same economic result. The same applies to filling
open or hidden gaps in this contract.

 

16.6 Changes and
additions to this contract, as well as cancellation of the contract, must be in
writing to be valid. This also applies to the permanent or case-by-case
annulment of the clause requiring the written form. Changes and additions as
well as cancellation must be designated as such and signed by the
representatives of the contracting parties who are authorized to do so. The
written form named in sentence 1 is not met by statements sent by e-mail or in
electronic form.

 

16.7 Hanau is the
site of jurisdiction and venue and place of performance for all obligations
arising from this contract for both contracting parties.

 

13

 

16.8
ENCLOSURES:

 

Enclosed in this
contract:

 

	
  1)

  	
  No. 1034a

  	
  Area plan of
  Hanau Industrial Park

  
	
   

  	
   

  	
   

  
	
  2)

  	
  No. 1034b

  	
  Layout of hall
  3C

  
	
   

  	
   

  	
   

  
	
  3)

  	
  No. 1034c

  	
  Ground plan of
  hall 3C

  
	
   

  	
   

  	
   

  
	
  4)

  	
  No. 1034d

  	
  Side views of
  hall 3C, front and rear view

  
	
   

  	
   

  	
   

  
	
  5)

  	
  No. 1034e

  	
  Cross +
  longitudinal section of hall 3C

  
	
   

  	
   

  	
   

  
	
  6)

  	
  Photo: sample
  load distribution rail

  

 

	
  Grossostheim,
  01/21/2008

  	
   

  	
  Hanau,
  07/31/2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Georg A.
  Wissler

  	
   

  	
  /s/ Burkhard
  Prause

  
	
  GFW
  Vermögensverwaltung

  	
   

  	
  EAS European
  Advanced

  
	
  Georg A. + Fritz
  Wissler GbR

  	
   

  	
  Superconductors
  GmbH & Co. KG

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Georg A. Wissler

  	
   

  	
  Burkhard Prause

  
	
  Printed name

  	
   

  	
  Printed name

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Grossostheim, 07/21/2008

  	
   

  	
   

  
	
  /s/ Georg A. Wissler

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WIDEFLEX GmbH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Georg A. Wissler

  	
   

  	
   

  
	
  Printed name

  	
   

  	
   

  

 

14

 

Copy: Bldgs. 3A, 3B, 3C Addendum 1 dated
01/23/2009

 

ADDENDUM NO. 1

 

Between

 

1.   GFW VERMÖGENSVERWALTUNG
Georg and Fritz Wissler GbR

Babenhäuser Strasse 4, 63762 Grossostheim

Telephone 06026/9747-0, Fax 06026/974740,

represented by the
General Manager Mr. Fritz Wissler

 

- Landlord -

 

2.   WIDEFLEX GmbH

Stockstädter Str. 19, 63762 Grossostheim

Telephone
06026/9747-0, Fax 06026/974740,

represented by the
General Manager Mr. Fritz Wissler

 

- WIDEFLEX -

 

and

 

3.   the firm of Bruker
EAS GmbH,

Ehrichstr. 10,
63450 Hanau

Telephone
06181/4384-4100, Fax 06181/4384-4400,

represented by its
General Managers, Dr. Burkhard Prause and Dr. Klaus Schlenga

 

- Tenant -

 

A lease covering
hall 3B and building 3A and was concluded between the landlord and European
Advanced Superconductors GmbH & Co. KG on 07/11 - 07/24/2003, and a
lease covering a partial area of hall 3C in the Hanau Industrial Park,
Hafenstrasse 15/Ehrichstrasse 10, 63450 Hanau was concluded on 07/21 -
07/31/2008. Between WIDEFLEX and European Advanced Superconductors
GmbH & Co. KG there exist, in accordance with § Ill, Paragraph 5.b of
the lease of 07/11 - 07/24/2003 as well as § 5 of the lease of 07/21 -
07/31/2008, supply contracts for electricity for buildings 3A/B and the partial
area of hall 3C in the Industrial Park in Hanau at Ehrichstrasse 10, 63450
Hanau.

 

The following
Addendum No. 1 is agreed upon:

 

§ 1 Corporate legal changes by the tenant

 

Due to the
withdrawal of European Advanced Superconductors Verwaltungs GmbH (now: Bruker
EAS GmbH) from the European Advanced Superconductors GmbH & Co. KG
(hereinafter EAS GmbH & Co. KG) as sole unlimited partner

 

1

 

on
September 30, 2008, at 11:59 pm, in accordance with §§ 161, 105 of the
Commercial Code in conjunction with § 738 of the German Federal Civil Code (Bürgerliches
Gesetzbuch, BGB) by way of total legal succession, all assets of EAS
GmbH & Co. KG have accrued to Bruker BioSpin GmbH as sole limited
partner of EAS GmbH & Co. KG. Consequently, all business operations of
EAS GmbH & Co., including all assets, obligations and contractual and
legal relationships associated with it were passed from Bruker BioSpin GmbH to
Bruker EAS GmbH, so that all business operations of EAS GmbH & Co. in
their totality were passed to Bruker EAS GmbH by way of partial universal
succession (spin-off for acquisition pursuant to § 123, Paragraph 3,
No. 1, §§ 125, 138 ff., 46 ff. of the Reorganization Act
(Umwandlungsgesetz, UmwG)).

 

Therefore, by
virtue of these procedures, all assets and obligations, as well as contractual
and legal relationships, associated with the business operation of EAS
GmbH & Co. KG are transferred to Bruker EAS GmbH without the need for
a separate transfer of individual assets and obligations, as well as contractual
and legal relationships, or the consent of a third party.

 

For this reason,
the contractual relationships in accordance with Attachments 1a and 1b that
originally existed between GFW Vermögensverwaltung Georg and Fritz Wissler, GbR
and EAS GmbH & Co. KG are transferred to Bruker EAS GmbH.

 

The supplier
contracts for electricity concluded between EAS GmbH & Co. KG and
WIDEFLEX in accordance with §III, Paragraph 5.b, of the lease of 07/11 -
07/24/2003 as well as § 5 of the lease of 07/21 - 07/31/2008 are also included
in the transfer of these contractual relationships.

 

§2 Letter of Intent

 

With respect to
the lease dated 07.11/07 — 24/2003 covering hall 3B and building 3A in the
Industrial Park in Hanau, Ehrichstrasse 10, 63450 Hanau, on the 07/23/2003 the
parent company of European Advanced Superconductors GmbH & Co. KG,
namely Bruker BioSpin GmbH, Rheinstetten, submitted a letter of intent in the
amount of €160,000.00, that expires on 12/31/2008.

 

In accordance with
§ 14 of the lease of the 07/21 - 07/31/2008, Bruker EAS GmbH is obligated to
submit a full letter of intent from its parent company, at that point in time,
Bruker BioSpin GmbH, for buildings 3A/B and the partial area in hall 3C,
effective as of 01/01/2009 in the amount of €190,000.00 for the security of the
landlord’s claims from the two leases.

 

Within the context
of the comprehensive restructuring of the Bruker group under corporate law,
Bruker EAS GmbH was sold in-house from Bruker BioSpin GmbH to Bruker Advanced
Supercon Corporation, USA, on 12/19/2008. For this reason, Bruker BioSpin GmbH
is no longer available for a letter of intent.

 

2

 

Within two weeks
after signing this contract, the tenant must therefore submit to the landlord a
directly enforceable, unconditioned, time-unlimited, surety payable on first
demand drawn on a major German bank, savings bank or public regional bank in
the amount of €150,000.00. The landlord shall accept the surety in place of the
agreed upon letter of intent in accordance with § 14 of the lease of 07/21 -
31/2008.

 

The tenant bears
sole responsibility for the commission on the deposited security.

 

§3 Attachments

 

Enclosed with this
contract are:

 

Attachment 1a:
Lease of 07/11 - 07/24/2003

 

Attachment 1b:
Lease of 07/21 - 07/31/2008

 

§4

 

Otherwise, all
conditions of the lease of the 07/11 - 07/24/2003 and the lease of the 07/21 -
07/31/2008 still apply unchanged

 

	
  Grossostheim, 1/23/2009

  	
   

  	
  Hanau, 02/02/2009

  
	
   

  	
   

  	
   

  
	
  /s/ Georg A. Wissler

  	
   

  	
  /s/ Burkhard Prause

  
	
  /s/ Fritz Wissler

  	
   

  	
  /s/ Klaus Schlenga

  
	
  GFW VERMÖGENSVERWALTUNG

  	
   

  	
  Bruker EAS GmbH

  
	
  Georg + Fritz Wissler GbR

  	
   

  	
  represented by its General Managers

  
	
   

  	
   

  	
   

  
	
  Georg A. Wissler

  	
   

  	
  Burkhard Prause

  
	
  Fritz Wissler

  	
   

  	
  Klaus Schlenga

  
	
  Printed name

  	
   

  	
  Printed name

  
	
   

  	
   

  	
   

  
	
  Grossostheim,
  1/23/2009

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Georg A. Wissler

  	
   

  	
   

  
	
  /s/ Fritz Wissler

  	
   

  	
   

  
	
  WIDEFLEX GmbH

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Georg J. Wissler

  	
   

  	
   

  
	
  Fritz Wissler

  	
   

  	
   

  
	
  Printed name

  	
   

  	
   

  

 

3

 

Copy: Bldgs. 3A + B Addendum 2 dated
10/16/2008

 

ADDENDUM NO. 2

 

between

 

GFW VERMÖGENSVERWALTUNG Georg and Fritz Wissler GbR,

Babenhäuser Strasse 4, 63762 Grossostheim

Telephone 06026/9747-0, Fax 06026/974740,

represented by
General Manager Georg A. Wissler

 

- Landlord -

 

and

 

the firm of Bruker EAS GmbH, Ehrichstr. 5, 63450 Hanau,

represented by its
General Managers, Dr. Burkhard Prause and Dr. Klaus Schlenga

 

- Tenant -

 

there exists the
primary lease of 07/11 — 7/24/2003 covering hall 3B and building 3A, as well as
Addendum No. 1 of 10/08/2008 concerning hall 3B, building 3A and a partial
area of hall 3C in the Hanau Industrial Park, Hafenstrasse 15 / Ehrichstrasse
10, 63450 Hanau.

 

The following
Addendum 2, referring to the primary lease pertaining to hall 3B and building
3A, is agreed:

 

§1 Rent / Additional expenses plus the
applicable VAT in each case

 

The tenant has
exercised his option in accordance with §II, Paragraph 6, of the primary lease
and extended the tenancy for 3 years, i.e. from 01/1/2009 through 12/31/2011.

 

The valid rent as
of 01/01/2009 is re-established in loyal negotiation as follows:

 

1. Rent

The monthly rent
is compiled as follows:

 

	
  a) Ground-level storage area - hall 3B

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2,871 m2 @ €3.80

  	
   

  	
  €

  	
  10,909.80

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  amount carried over

  	
   

  	
  €

  	
  10,909.80

  	
   

  	
   

  	
   

  

 

1

 

	
  amount carried forward

  	
   

  	
  €

  	
  10,909.80

  	
   

  	
   

  	
   

  

 

	
  b) office + common areas - building 3A

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Ground floor

  	
  250 m2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd floor

  	
  245 m2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd floor

  	
  244 m2

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  739 m2 @ € 6.50

  	
   

  	
  €

  	
  4,803.50

  	
   

  	
   

  	
   

  
								

 

	
  c) storage area and receiving - hall 3B

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  69 m @ € 2.00 = € 138.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unrented, but tenant must clean

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  d) asphalted wrap-around area

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Hall yard side

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  50 x 5 m = 250 m2 @ € 1.00

  	
   

  	
  €

  	
  250.00

  	
   

  	
   

  	
   

  
							

 

	
  e) truck parking spaces on the ramp

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.0 m x 20 m.
              2 spaces @
  € 220.00 = € 440.00

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Unrented, but tenant must clean

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  f) automobile parking spaces

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Asphalted marked automobile parking spaces

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Front of office building 3A (block reduction)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  20 sections @ € 20.00

  	
   

  	
  €

  	
  400.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net monthly rent

  	
   

  	
  €

  	
  16,363.30

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  plus 19% VAT

  	
   

  	
  €

  	
  3,109.03

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gross
  monthly rent

  	
   

  	
  €

  	
  19,472.33

  	
   

  	
   

  	
   

  

 

2.       The rent payment shall begin on
01/01/2009.

 

§2

 

All remaining
conditions of the lease of 07/11 - 07/24/2003 are still valid and unchanged, as
well as Addendum No. 1 of 08/10/2008.

 

	
  Grossostheim, 10/16/2008,

  	
   

  	
  Hanau 12/15/2008

  
	
   

  	
   

  	
   

  
	
  /s/ Georg A. Wissler

  	
   

  	
  /s/ Burkhard Prause

  
	
   

  	
   

  	
  /s/ Peter Unvericht

  
	
   

  	
   

  	
   

  
	
  GFW VERMÖGENSVERWALTUNG

  	
   

  	
  Bruker EAS GmbH,

  
	
  Georg + Fritz
  Wissler GbR

  	
   

  	
  represented by
  its General Managers

  
	
   

  	
   

  	
   

  
	
  Georg A. Wissler

  	
   

  	
  Burkhard Prause

  
	
   

  	
   

  	
  Peter Unvericht

  
	
   

  	
   

  	
   

  
	
  Printed name

  	
   

  	
  Printed name

  

 

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]