Document:

Form of Representative's Warrant

 Exhibit 4.2 
  

THIS WARRANT HAS NOT BEEN REGISTERED 
 UNDER
THE SECURITIES ACT OF 1933 
 AND IS NOT TRANSFERABLE 
 EXCEPT AS PROVIDED HEREIN 
  
 Lumera Corporation 
  
 PURCHASE WARRANT 

 
 Issued to: 
  
 PAULSON INVESTMENT COMPANY, INC. 
  
 Exercisable to Purchase 
  
              Shares of Common Stock 
  
 of 
  
  
 LUMERA CORPORATION 
  
 Void after
            , 2009 
  

 This is to certify that, for value received and subject to the terms and conditions set forth below, the
Warrantholder (as defined below) is entitled to purchase, and the Company promises and agrees to sell and issue to the Warrantholder, at any time on or after             , 2005 and
on or before             , 2009, up to              Shares (as defined below) at the Exercise Price (as defined
below). 
  
 This Warrant Certificate is issued subject to the
following terms and conditions: 
  
 1. Definitions. Except
as may be otherwise clearly required by the context, the following terms have the following meanings: 
  
 (a) “Act” means the Securities Act of 1933, as amended. 
  
 (b) “Cashless Exercise” means an exercise of Warrants in which, in lieu of payment of the
Exercise Price, the Holder elects to receive a lesser number of Securities such that the value of the Securities that such Holder would otherwise have been entitled to receive but has agreed not to receive, as determined by the closing price of such
Securities on the date of exercise or, if such date is not a trading day, on the next prior trading day, is equal to the Exercise Price with respect to such exercise. A Holder may only elect a Cashless Exercise if Securities issuable by the Company
on such exercise are publicly traded securities. 
  
 (c) “Closing Date” means the date on which the Offering is closed. 
  
 (d) “Commission” means the Securities and Exchange Commission. 
  
 (e) “Common Stock” means the common stock,
$.001 par value, of the Company. 
  
 (f)
“Company” means Lumera Corporation, a Delaware corporation. 
  
 (g) “Company’s Expenses” means any and all expenses payable by the Company or the Warrantholder in connection with an offering described in Section 6 hereof, except Warrantholder’s Expenses.

  
 (h) “Effective Date” means
the date on which the Registration Statement is declared effective by the Commission. 
  
 (i) “Exercise Price” means the price at which the Warrantholder may purchase one Share upon exercise of Warrants as
determined from time to time pursuant to the provisions hereof. The initial Exercise Price is $             per Share. 
  
 (j) “Offering” means the public offering of Shares made pursuant to the Registration
Statement. 
  
 (k) “Participating
Underwriter” means any underwriter participating in the sale of the Securities pursuant to a registration under Section 6 of this Warrant Certificate. 
  

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 (l) “Registration Statement” means the Company’s registration
statement (File No. 333 -            ) as amended on the Closing Date. 
  
 (m) “Rules and Regulations” means the rules and regulations of the Commission adopted under the Act. 
  
 (n) “Securities” means the securities
obtained or obtainable upon exercise of the Warrant or securities obtained or obtainable upon exercise, exchange, or conversion of such securities. 
  
 (o) “Share” means a share of Common Stock. 
  
 (p) “Warrant Certificate” means a certificate evidencing the Warrant. 
  
 (q) “Warrantholder” means a record holder of
the Warrant or Securities. The initial Warrantholder is Paulson Investment Company, Inc. 
  
 (r) “Warrantholder’s Expenses” means the sum of (i) the aggregate amount of cash payments made to an underwriter,
underwriting syndicate, or agent in connection with an offering described in Section 6 hereof multiplied by a fraction the numerator of which is the aggregate sales price of the Securities sold by such underwriter, underwriting syndicate, or agent
in such offering and the denominator of which is the aggregate sales price of all of the securities sold by such underwriter, underwriting syndicate, or agent in such offering and (ii) all out-of-pocket expenses of the Warrantholder, except for the
fees and disbursements of one firm retained as legal counsel for the Warrantholder that will be paid by the Company. 
  
 (s) “Warrant” means the warrant evidenced by this certificate, any similar certificate issued in connection with the
Offering, or any certificate obtained upon transfer or partial exercise of the Warrant evidenced by any such certificate. 
  
 2. Exercise of Warrant. All or any part of the Warrant represented by this Warrant Certificate may be exercised commencing on the first anniversary
of the Effective Date and ending at 5 p.m. Pacific Time on the fifth anniversary of the Effective Date by surrendering this Warrant Certificate, together with appropriate instructions, duly executed by the Warrantholder or by its duly authorized
attorney, at the office of the Company, 19910 North Creek Parkway, Bothell, Washington 98041; or at such other office or agency as the Company may designate. The date on which such instructions are received by the Company shall be the date of
exercise. If the Holder has elected a Cashless Exercise, such instructions shall so state. Upon receipt of notice of exercise, the Company shall immediately instruct its transfer agent to prepare certificates for the Securities to be received by the
Warrantholder upon completion of the Warrant exercise. When such certificates are prepared, the Company shall notify the Warrantholder and deliver such certificates to the Warrantholder or as per the Warrantholder’s instructions immediately
upon payment in full by the Warrantholder, in lawful money of the United States, of the Exercise Price payable with respect to the Securities being purchased, if any. If the Warrantholder shall represent and warrant that all applicable registration
and prospectus delivery requirements for their sale have been complied with upon sale of the Securities received upon exercise of the Warrant, such certificates shall not bear a legend with respect to the Securities Act of 1933. 
  

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 If fewer than all the Securities purchasable under the Warrant are purchased, the Company will, upon such
partial exercise, execute and deliver to the Warrantholder a new Warrant Certificate (dated the date hereof), in form and tenor similar to this Warrant Certificate, evidencing that portion of the Warrant not exercised. The Securities to be obtained
on exercise of the Warrant will be deemed to have been issued, and any person exercising the Warrants will be deemed to have become a holder of record of those Securities, as of the date of the payment of the Exercise Price. 
  
 3. Adjustments in Certain Events. The number, class, and price of
Securities for which this Warrant Certificate may be exercised are subject to adjustment from time to time upon the happening of certain events as follows: 
  
 (a) If the outstanding shares of the Company’s Common Stock are divided into a greater number of shares or a dividend in Common Stock
is paid on the Common Stock, the number of Shares for which the Warrant is then exercisable will be proportionately increased and the Exercise Price will be proportionately reduced; and, conversely, if the outstanding shares of Common Stock are
combined into a smaller number of shares of Common Stock, the number of Shares for which the Warrant is then exercisable will be proportionately reduced and the Exercise Price will be proportionately increased. The increases and reductions provided
for in this Section 3(a) will be made with the intent and, as nearly as practicable, the effect that neither the percentage of the total equity of the Company obtainable on exercise of the Warrants nor the price payable for such percentage upon such
exercise will be affected by any event described in this Section 3(a). 
  
 (b) In case of any change in the Common Stock through merger, consolidation, reclassification, reorganization, partial or complete liquidation, purchase of substantially all the assets of the Company, or other change
in the capital structure of the Company, then, as a condition of such change, lawful and adequate provision will be made so that the holder of this Warrant Certificate will have the right thereafter to receive upon the exercise of the Warrant the
kind and amount of shares of stock or other securities or property to which it would have been entitled if, immediately prior to such event, it had held the number of Shares k obtainable upon the exercise of the Warrant. In any such case,
appropriate adjustment will be made in the application of the provisions set forth herein with respect to the rights and interest thereafter of the Warrantholder, to the end that the provisions set forth herein will thereafter be applicable, as
nearly as reasonably may be, in relation to any shares of stock or other property thereafter deliverable upon the exercise of the Warrant. The Company will not permit any change in its capital structure to occur unless the issuer of the shares of
stock or other securities to be received by the holder of this Warrant Certificate, if not the Company, agrees to be bound by and comply with the provisions of this Warrant Certificate. 
  
 (c) When any adjustment is required to be made in the number of shares of Common Stock, other securities, or
the property purchasable upon exercise of the Warrant, the Company will promptly determine the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (i) prepare and retain on file a statement
describing in reasonable detail the method used in arriving at the new number of such shares or other securities or property purchasable upon exercise of the Warrant and (ii) cause a copy of 

  

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such statement to be mailed to the Warrantholder within thirty (30) days after the date of the event giving rise to the adjustment. 
  
 (d) No fractional Shares or other securities will be issued
in connection with the exercise of the Warrant, but the Company will pay, in lieu of fractional shares, a cash payment therefor on the basis of the mean between the bid and asked prices of the Common Stock in the over-the-counter market or the last
sale price of the Common Stock on the principal exchange or other trading facility on which the Common Stock is traded on the day immediately prior to exercise. 
  

(e) Except in a situation to which Section 3(a) applies, if securities of the Company or securities of any subsidiary of the Company
are distributed pro rata to holders of Common Stock, such number of securities will be distributed to the Warrantholder or its assignee upon exercise of its rights hereunder as such Warrantholder or assignee would have been entitled to if this
Warrant Certificate had been exercised prior to the record date for such distribution. The provisions with respect to adjustment of the Common Stock provided in this Section 3 will also apply to the securities to which the Warrantholder or its
assignee is entitled under this Section 3(e). 
  
 (f) Notwithstanding anything herein to the contrary, there will be no adjustment made hereunder on account of the sale by the Company of the Common Stock or other Securities purchasable upon exercise of the Warrant. 
  
 4. Reservation of Securities. The Company agrees that the number of
shares of Common Stock or other Securities sufficient to provide for the exercise of the Warrant upon the basis set forth above will at all times during the term of the Warrant be reserved for exercise. 
  
 5. Validity of Securities. All Securities delivered upon the exercise
of the Warrant will be duly and validly issued in accordance with their terms, and the Company will pay all documentary and transfer taxes, if any, in respect of the original issuance thereof upon exercise of the Warrant. 
  
 6. Registration of Securities Issuable on Exercise of Warrant
Certificate. 
  
 (a) The Company will register
the Securities with the Commission pursuant to the Act so as to allow the unrestricted sale of the Securities to the public from time to time commencing on the first anniversary of the Effective Date and ending at 5:00 p.m. Pacific Time on the fifth
anniversary of the Effective Date (the “Registration Period”). The Company will also file such applications and other documents necessary to permit the sale of the Securities to the public during the Registration Period in those
states in which the Shares were qualified for sale in the Offering or such other states as the Company and the Warrantholder agree to. In order to comply with the provisions of this Section 6(a), the Company is not required to file more than one
registration statement. No registration right of any kind, “piggyback” or otherwise, will last longer than five years from the Effective Date. 
  
 (b) The Company will pay all of the Company’s Expenses and each Warrantholder will pay its pro rata share of the Warrantholder’s
Expenses relating to the registration, offer, and sale of the Securities. 
  

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 (c) Except as specifically provided herein, the manner and conduct of the registration,
including the contents of the registration, will be entirely in the control and at the discretion of the Company. The Company will file such post-effective amendments and supplements as may be necessary to maintain the currency of the registration
statement during the period of its use. In addition, if the Warrantholder participating in the registration is advised by counsel that the registration statement, in their opinion, is deficient in any material respect, the Company will use its best
efforts to cause the registration statement to be amended to eliminate the concerns raised. 
  
 (d) The Company will furnish to the Warrantholder the number of copies of a prospectus, including a preliminary prospectus, in conformity
with the requirements of the Act, and such other documents as it may reasonably request in order to facilitate the disposition of Securities owned by it. 
  
 (e) The Company will, at the request of Warrantholders holding at least 50 percent of the then outstanding Warrants, (i) furnish an
opinion of the counsel representing the Company for the purposes of the registration pursuant to this Section 6, addressed to the Warrantholders and any Participating Underwriter, (ii) furnish an appropriate letter from the independent public
accountants of the Company, addressed to the Warrantholders and any Participating Underwriter, and (iii) make representations and warranties to the Warrantholders and any Participating Underwriter. A request pursuant to this subsection (e) may be
made on three occasions. The documents required to be delivered pursuant to this subsection (e) will be dated within ten days of the request and will be, in form and substance, equivalent to similar documents furnished to the underwriters in
connection with the Offering, with such changes as may be appropriate in light of changed circumstances. 
  
 7. Indemnification in Connection with Registration. 
  
 (a) If any of the Securities are registered, the Company will indemnify and hold harmless each selling Warrantholder, any person who
controls any selling Warrantholder within the meaning of the Act, and any Participating Underwriter against any losses, claims, damages, or liabilities, joint or several, to which any Warrantholder, controlling person, or Participating Underwriter
may be subject under the Act or otherwise; and it will reimburse each Warrantholder, each controlling person, and each Participating Underwriter for any legal or other expenses reasonably incurred by the Warrantholder, controlling person, or
Participating Underwriter in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities, joint or several (or actions in respect thereof), arise out of or
are based upon any untrue statement or alleged untrue statement of any material fact contained, on the effective date thereof, in any such registration statement or any preliminary prospectus or final prospectus, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading; provided, however, that the Company will not be
liable in any case to the extent that any loss, claim, damage, or liability arises out of or is based upon any untrue statement or alleged untrue statement or omission or alleged omission made in any registration statement, preliminary prospectus,
final prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished by a Warrantholder for use in the preparation 

  

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thereof. The indemnity agreement contained in this subparagraph (a) will not apply to amounts paid to any claimant in settlement of any suit or claim unless
such payment is first approved by the Company, such approval not to be unreasonably withheld. 
  
 (b) Each selling Warrantholder, as a condition of the Company’s registration obligation, will indemnify and hold harmless the
Company, each of its directors, each of its officers who have signed any registration statement or other filing or any amendment or supplement thereto, and any person who controls the Company within the meaning of the Act, against any losses,
claims, damages, or liabilities to which the Company or any such director, officer, or controlling person may become subject under the Act or otherwise, and will reimburse any legal or other expenses reasonably incurred by the Company or any such
director, officer, or controlling person in connection with investigating or defending any such loss, claim, damage, liability, or action, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any untrue or alleged untrue statement of any material fact contained in said registration statement, any preliminary or final prospectus, or other filing, or any amendment or supplement thereto, or arise out of or are based upon the
omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, but only to the extent that such untrue statement or alleged untrue statement or omission or
alleged omission was made in said registration statement, preliminary or final prospectus, or other filing, or amendment or supplement, in reliance upon and in conformity with written information furnished by such Warrantholder for use in the
preparation thereof; provided, however, that the indemnity agreement contained in this subparagraph (b) will not apply to amounts paid to any claimant in settlement of any suit or claim unless such payment is first approved by the Warrantholder,
such approval not to be unreasonably withheld. 
  
 (c) Promptly after receipt by an indemnified party under subparagraphs (a) or (b) above of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party,
notify the indemnifying party of the commencement thereof; but the omission to notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party otherwise than under subparagraphs (a) and (b). 

 
 (d) If any such action is brought against any indemnified
party and it notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel satisfactory to such indemnified party; and after notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party will not be liable to such indemnified
party for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation. 
  
 8. Restrictions on Transfer. This Warrant Certificate and the Warrant may not be sold, transferred, assigned or
hypothecated for a one-year period after the Effective Date except to underwriters of the Offering or to individuals who are either a partner or an officer of such an underwriter or by will or by operation of law. The Warrant may be divided or
combined, upon 

  

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request to the Company by the Warrantholder, into a certificate or certificates evidencing the same aggregate number of Warrants. 
  
 9. No Rights as a Shareholder. Except as otherwise provided herein,
the Warrantholder will not, by virtue of ownership of the Warrant, be entitled to any rights of a shareholder of the Company but will, upon written request to the Company, be entitled to receive such quarterly or annual reports as the Company
distributes to its shareholders. 
  
 10. Notice. Any
notices required or permitted to be given hereunder will be in writing and may be served personally or by mail; and if served by mail will be addressed as follows: 
  
 If to the Company: 
  
 Lumera Corporation 
 19910 North Creek Parkway 
 Bothell, Washington 98041 
 Attention: Chief Executive Officer; 
  
 If to the Warrantholder: 
  
 at the address furnished 
 by the Warrantholder to the 
 Company for the purpose of 
 notice. 
  
 Any notice so given by mail will be deemed effectively given 48 hours after mailing when deposited in the United States mail, registered or certified
mail, return receipt requested, postage prepaid and addressed as specified above. Any party may by written notice to the other specify a different address for notice purposes. 
  
 11. Applicable Law. This Warrant Certificate will be governed by and construed in accordance with the laws of the
State of Delaware, without reference to conflict of laws principles thereunder. 
  
 (Remainder of page intentionally blank; signature page follows) 
  

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 Dated as of             , 2004

  

			
	 LUMERA CORPORATION

		
	By:	 	 
	 	 	

	 	 	 Thomas D. Mino
 Chief Executive Officer

  
  

 8Sublease effective January 1, 2004, with Microvision, Inc.

 Exhibit 10.3 
  
 SUBLEASE 
  
 THIS SUBLEASE (“Sublease”) is made as of January 1, 2004, (“Effective Date”) by and between MICROVISION, INC., a
Delaware corporation (“Sublessor”), and LUMERA CORPORATION, a Washington corporation (“Sublessee”). 
  
 RECITALS 
  
 A. Sublessor and Landlord entered into a lease dated November 27, 1998 (the “Lease”), as amended from time to time, a copy of which is attached
hereto as Exhibit A, whereby Sublessor leased from Landlord certain Premises described in the Lease located in Buildings F and E in the North Creek Technology Campus I, Bothell, Washington. 
  
 B. Sublessor wishes to sublease a portion of the Premises to Sublessee (the
“Subleased Premises”), and Sublessee wishes to sublease the Subleased Premises from Sublessor. 
  
 AGREEMENT 
  
 1. DEFINITION OF TERMS. Terms not otherwise defined in this Sublease shall have the meanings ascribed to them in the Lease. 
  
 2. SUBLEASED PREMISES. The Subleased Premises consist of
approximately 15,194 rentable square feet located in Building F of North Creek Technology Campus I, designated as Suite 101. The Subleased Premises consists of 10,710 occupied square feet and 4,484 square feet of allocated common area. 

 
 3. SUBLEASE TERM. The term of this Sublease shall commence
on January 1, 2004 (“Commencement Date”), and shall expire on April 6, 2006. 
  
 4. RENT. 
  
 4.1 Sublessee’s Base Rent. Beginning as of the Commencement Date, Sublessee shall pay to Sublessor the amount of $20,715.50 per month (the “Sublessee’s Base Rent”). Base Rent is determined by
multiplying the rentable square feet of the Subleased Premises by the same rate per square foot that Sublessor pays as Base Rent under the Lease, which, as of the Effective Date, is $1.3634 per rentable square foot. Sublessee shall pay
Sublessee’s Base Rent at Sublessor’s address set forth below or via wire transfer as directed by Sublessor on or before the first day of each month during the Sublease Term. Any unpaid portion of Sublessee’s Base Rent for any prior
period and the remainder of the calendar month in which the Term of this Sublease commences, shall be paid upon execution of the Sublease. 
  

 1 

 4.2 Additional Rent. 
  
 (a) Payment. Beginning as of the Commencement Date,
Sublessee shall pay to Sublessor, Sublessee’s Share of Additional Rent (as described in Section 5.02 of the Lease) (Sublessee’s “Additional Rent”). Monthly payments of Additional Rent are due on or before the first day of each
month during the Sublease Term. Other payments of Additional Rent, including annual adjustments, are due upon demand from Sublessor. 
  
 (b) Estimates; Adjustments. When Landlord adjusts the Additional Rent under the Lease, the obligations of Sublessor and Sublessee
shall be adjusted in a like manner. Upon Sublessee’s written request, Sublessor shall furnish Sublessee with copies of statements of actual or estimated Additional Rent received by Sublessor from Landlord applicable to the Sublease term.

  
 4.3 Sublessee’s Share. For
purposes of this sublease “Sublessee’s Share” is based on Sublessee’s pro-rata share of space it occupies in the Subleased Premises calculated by dividing Sublessee’s occupied square feet by the total occupied square feet of
Building F. As of the Effective Date, Sublessee’s Share is 22.52%. Sublessee’s Share is subject to modification if there is a change in Sublessee’s occupied or allocated space. 
  
 4.4 Late Payment Charge. Sublessee shall pay a
late payment charge of 5% of the total amount of Sublessor’s Rent due if any portion of any payment of Sublessee’s Base Rent or Sublessee’s Additional Rent (together, “Sublessee’s Rent”) is not received by
Sublessor by the due date. In addition, Sublessee shall immediately reimburse Sublessor for any payment of Sublessee’s Rent that Sublessor is required to make in order to avoid an Event of Default under the Lease, together with any late charge
or interest assessed against Sublessor with respect to such payment. 
  
 5. PREMISES. 
  
 5.1
Condition. Sublessor shall deliver the Premises to Sublessee in good condition, ordinary wear and tear excepted. 
  
 5.2 Use. The Subleased Premises shall be used only for office, laboratory, research and development, and light manufacturing
purposes, all of which uses shall not vary substantially from Sublessee’s business as conducted on the Commencement Date of this Sublease without Sublessor’s prior written consent, which consent may be withheld in Sublessor’s sole
discretion. 
  
 5.3 Tenant
Improvements. Sublessee shall not make any alterations or improvements to the Subleased Premises without Sublessor’s prior written consent, which consent may be withheld in Sublessor’s sole discretion. Any permitted alterations or
improvements to the Subleased Premises shall be at Sublessee’s expense and shall comply with all of the obligations pertaining thereto under the Lease, including but not limited to obtaining any consent required of Landlord, complying with all
applicable laws and the quality standards 

  

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required by the Lease, and removal if required by Sublessor or Landlord. All of Sublessee’s personal property and trade fixtures shall remain the
property of Sublessee, shall be maintained in good condition while on the Subleased Premises and shall be removed by Sublessee upon the expiration or earlier termination of this Sublease. As a covenant that shall survive the expiration or earlier
termination of this Sublease, Sublessee shall repair, at Sublessee’s sole expense, all damage caused by the installation or removal of Sublessee’s trade fixtures, equipment, furniture or improvements. If Sublessee fails to remove the
foregoing items prior to or upon the expiration or earlier termination of this Sublease, Sublessor, at its option and without liability to Sublessee for loss thereof, may keep and use them or remove any or all of them and cause them to be stored or
sold in accordance with applicable law, and Sublessee shall, upon demand of Sublessor, pay to Sublessor as Additional Rent hereunder all costs and expenses incurred by Sublessor in so removing storing and/or selling said items. In the event any such
fixtures, equipment, and/or furniture of Sublessee are sold by Sublessor, the proceeds of such sale shall be applied, first, to all expenses of Sublessor incurred in connection with removal, storage and sale; second, to any amounts owed by Sublessee
to Sublessor under this Sublease or otherwise, and, third, the remainder, if any, shall be paid to Sublessee. 
  
 5.4 Signs. Sublessee shall, at its expense, erect only such signs on or about the Subleased Premises as are permitted by the
Lease, Sublessor and Landlord. 
  
 6. INSURANCE.

  
 6.1 Required Coverages.
Sublessee shall at all times carry and pay for the same type of insurance and policy amounts required of Sublessor under the Lease. A certificate of insurance in the form required by the Lease for the insurance policy (and renewals thereof) shall be
delivered by Sublessee to Sublessor upon execution of this Sublease and, thereafter, at least 30 days prior to the expiration of such policy. The commercial liability insurance required under Section 7.02 of the Lease shall name Sublessor as an
additional insured. In the event Sublessee does not meet the insurance requirements of the Lease, Sublessor may procure such insurance on Sublessee’s behalf and at Sublessee’s expense, and Sublessee shall immediately reimburse Sublessor
for the cost thereof. 
  
 6.2 Waiver of
Subrogation. Landlord and Sublessor reaffirm and Sublessee agrees that each of them waives any rights or recovery against the other for injury or loss due to hazards covered by insurance containing the waiver of subrogation clause described
on the endorsement described in Section 7.06 of the Lease to the extent of the injury or loss covered thereby. 
  
 6.3 Sublessee’s Property. Sublessee shall be solely responsible for insuring its own property on the Subleased
Premises. Sublessor shall not be responsible for loss or damage to the personal property of Sublessee, its sublessees, employees, agents, contractors, customers or invitees, unless such loss or damage was occasioned by the intentional or grossly
negligent act of Sublessor, its agents, servants or employees. 
  
 7. ASSIGNMENTS. Sublessee shall not sublet or assign (directly or by way of merger, sale or operation of law) the Subleased Premises in whole or in part without Sublessor’s prior 

  

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written consent in each instance. In lieu of granting consent to an assignment or sublease requested by Sublessee, Sublessor may, at its discretion, elect to
terminate this Sublease as to the portion of the Subleased Premises that is the subject of the request. The giving or withholding of Landlord’s consent shall be governed by the terms of the Lease. In no event shall an assignment or sublease of
the Subleased Premises release Sublessee from liability under this Sublease. 
  
 8. OBLIGATIONS UNDER THE LEASE. 
  
 8.1 Assumption by Sublessee. All applicable terms and conditions of the Lease are incorporated into and made a part of this Sublease as if Sublessor were the lessor thereunder, Sublessee the
lessee thereunder, and the Subleased Premises the Premises. Sublessee assumes and agrees to perform the tenant’s obligations under the Lease during the Sublease Term to the extent that such obligations are applicable to the Subleased Premises,
except that the obligation to pay rent to Landlord under the Lease shall be considered performed by Sublessee to the extent and in the amount rent is paid to Sublessor in accordance with the provisions of this Sublease. Sublessee shall not commit or
suffer any act or omission that will violate any of the provisions of the Lease. Sublessee shall indemnify, defend and hold Sublessor free and harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities and
losses (including, without limitation, sums paid in settlement of claims, attorneys’ fees, consultant fees and expert fees) which arise during or after the Term of the Lease as a result of Sublessee’s occupancy of the Subleased Premises or
breach of the Lease. Sublessor shall exercise due diligence in attempting to cause Landlord to perform its obligations under the Lease for the benefit of Sublessee. If the Lease terminates, this Sublease shall terminate and the parties shall be
relieved of any further liability or obligation under this Sublease, provided however, that if the Lease terminates as a result of a default or breach by Sublessor or Sublessee under this Sublease and/or the Lease, then the defaulting party shall be
liable to the non defaulting party for the damage suffered as a result of such termination. Notwithstanding the foregoing, if the Lease gives Sublessor any right to terminate the Lease in the event of the partial or total damage, destruction, or
condemnation of the Premises or the Building or Project, the exercise of such right by Sublessor shall not constitute a default or breach hereunder. 
  
 8.2 Compliance with Laws; Hazardous Materials. Without limiting the generality of Sublessee’s obligations under
Section 8.1, Sublessee confirms that its occupancy and use of the Subleased Premises (a) shall be in compliance with Section 10.01 of the Lease and in particular shall comply with all requirements of municipal, county, state, federal and other
applicable governmental authorities now or hereafter in force pertaining to Sublessee’s business operations and use of the Subleased Premises; and (b) shall not violate Section 10.02 of the Lease concerning Hazardous Materials. Any Hazardous
Materials used in Sublessee’s business shall be handled and managed with state-of-the-art procedures, equipment and machinery at all times by employees, agents or contractors properly, and consistently trained (and certified, when necessary) in
the current and best practices of the handling and management of such materials. Sublessee shall also comply with Sublessor’s Building Security Policy, Safety Policy and associated rules. In addition, Sublessee shall prepare and implement,
maintain and enforce a Safety Policy, subject to approval by Microvision, for the management and handling of 

  

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hazardous materials including responding to spills, leakage, and accidents in accordance with all applicable laws and Sublessor requirements. 
  
 8.3 Sublessor’s Obligations. Sublessor
covenants with Sublessee to perform all of its obligations under the Lease to the extent Sublessee complies with its obligations under this Sublease and its assumption of the Lease. Sublessor acknowledges that this Sublease shall not limit or impair
Sublessor’s liability to Landlord under the Lease. 
  
 9.
DEFAULT. 
  
 9.1 Notice;
Cure. Sublessor shall give Sublessee the same notices and rights to cure monetary and nonmonetary defaults as are afforded to Sublessor under the Lease, with all such periods commencing on the effective date of written notice of such default
given by Sublessor to Sublessee. 
  
 9.2
Remedies. Sublessor shall have the right to cancel this Sublease if Sublessee does not cure any default within any applicable period after notice as provided above, and may exercise any other legal or equitable remedy under applicable
law. 
  
 10. NOTICES. 
  
 10.1 Under Sublease. All notices given
under this Sublease shall be in writing and delivered to all the parties in the manner set forth in Section 17.01 of the Lease. All notices shall be delivered to the parties at the following addresses, or at such other address as a party may
designate in writing: 
  

					
	 	  	Sublessor:	  	 Microvision, Inc.
 19910 North Creek Parkway
 P.O. Box 3008
 Bothell WA
98011
 Attn: Chief Financial Officer

			
	 	  	 	  	 With a copy to the General Counsel

			
	 	  	Sublessee:	  	 Lumera Corporation
 P.O. Box 3008
 19910 North Creek Parkway
 Bothell, WA
98011
 Attn: Chief Executive Officer

  
 10.2
Under Lease. Sublessor and Sublessee shall each promptly provide the other with a copy of all notices received from Landlord regarding the Subleased Premises or this Sublease. 
  
 11. LANDLORD’S CONSENT. The effectiveness of this Sublease
is expressly conditioned upon the execution of a Landlord’s Consent in the form attached hereto as 

  

 5 

 
Exhibit B by Landlord evidencing its consent to the terms of this Sublease. 
  
 12. MISCELLANEOUS. 
  
 12.1 Successors. Subject to Section 7 hereof, this Sublease shall bind and inure to the
benefit of the respective successors and assigns of Sublessor, Sublessee and Landlord. 
  
 12.2 Brokers. Neither party to this Sublease shall be liable for the fees of any other brokers or agents unless and to the
extent the party to be charged with such fee or commission otherwise agrees in writing. No broker or agent has the authority to make any representation for or obligate either party to this Sublease. 
  
 12.3 Attorneys’ Fees. In the event of any
action or proceeding by either party against the other under this Lease, the prevailing party shall be entitled to recover for the fees of its attorneys in such action or proceeding, including costs of appeal, if any, in such amount as the court may
adjudge reasonable as attorneys’ fees. 
  
 12.4 Waivers; Time. No waiver shall arise or result from any act or omission by any party to this Sublease except when made in writing signed by such party. 
  
 12.5 Controlling Law; Venue. This Sublease shall be governed and construed in accordance with
the laws of the State of Washington and the venue of any action to interpret or enforce the provisions of this Sublease shall be laid in King County. 
  
 12.6 Validity. If a court of competent jurisdiction determines that any portion of this Sublease is invalid or
unenforceable, that determination shall not affect the validity or enforceability of the remaining provisions of this Sublease so long as the principal purpose of this Sublease is not materially impaired. 
  
 12.7 Counterparts. This Sublease may be
executed in two or more counterparts, all of which shall constitute but one and the same Sublease. 
  

 6 

 12.8 Entire Agreement. This Sublease constitutes the entire agreement among
the parties and supersedes all prior oral or written understandings relating to the Lease or the Subleased Premises. This Sublease may be modified only by written agreement between the parties or their successors subsequent to the date of this
Sublease. 
  
 Executed effective as of the date first written
above. 
  

					
	 SUBLESSOR:

	
	 MICROVISION, INC., a
 Delaware corporation

		
	 By:
	 	 /s/ Richard A. Raisig

	 	 	

	 	 	 Printed Name:
	 	 Richard A. Raisig

	 	 	 	 	

					
	 	 	 Its:
	 	CFO
	 	 	 	 	

	
	 SUBLESSEE:

	
	 LUMERA CORPORATION, a
 Washington corporation

		
	 By:
	 	 /s/ Thomas D. Mino

	 	 	

	 	 	 Printed Name: Thomas D. Mino

	 	 	 Its: CEO

  

 7 

			
	 STATE OF WASHINGTON
	  	)
	 	  	) ss.
	 COUNTY OF KING
	  	)

  
 On this 28th day of April, 2004, before me personally appeared Thomas Mino, to me known to be the CEO of Lumera Corporation, the Washington
corporation, that executed the within and foregoing instrument, and acknowledged said instrument to be the free and voluntary act and deed of said limited liability partnership, for the uses and purposes therein mentioned, and on oath stated that
(s)he was authorized to execute said instrument on behalf of said limited liability partnership. 
  
 IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. 
  

			
		
	 Signature:
	 	 /s/    Lindsey L. Stibbard

	 	 	

	 Name (Print):
	 	 Lindsey L. Stibbard

	
	 NOTARY PUBLIC in and for the State of
 Washington, residing at King County
 My appointment expires: 8/5/2007

  
 [SEAL]

  

 Exhibit A 
  

Lease 
  

 Exhibit B 
  

Form of Landlord Consent

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