San
Diego Lease
On
January 7, 2022, StemoniX, Inc. (“StemoniX”), a subsidiary of the Company, entered into a lease agreement (the “San
Diego Lease”) with Nancy Ridge Technology Center, L.P. for the lease of approximately 4,995 rentable square feet of laboratory
and office space (the “San Diego Premises”) known as Suite 111 located at 6370 Nancy Ridge Drive, San Diego, California 92121
(the “San Diego Project”) for the StemoniX’s research, development manufacturing, laboratory, office and related uses.
The San Diego Lease is guaranteed by the Company pursuant to that certain Guaranty of Lease dated January 7, 2022.
The
term of the San Diego Lease is for five (5) years and two (2) months and the term of the San Diego Lease shall commence on the date that
is the later of (i) February 1, 2022 or (ii) the date on which the landlord substantially completes landlord’s buildout of the
San Diego Premises. The Company will initially pay $22,477.50 per month in base rent during the first year of the San Diego Lease term,
which base rent will increase by three and one-half percent (3.5%) on each anniversary of the commencement date during the San Diego
Lease term. Base rent is abated for the first two (2) months of the San Diego Lease term after the commencement date. In addition to
base rent, the Company is responsible for payment of its pro rata share of operating expenses and property taxes for the San Diego Project.
StemoniX
anticipates constructing certain improvements in the San Diego Premises.
The
foregoing description of the San Diego Lease does not purport to be complete and is qualified in its entirety by reference to the full
and complete terms of the San Diego Lease. The San Diego Premises replaces our expiring lease at a different San Diego facility at a
lower ongoing cost structure.
Hershey
Lease Amendment
On
January 20, 2022, vivoPharm, LLC. ( “vivoPharm”)[, a subsidiary of the Company,] entered into a Second Amendment to Lease
(the “Hershey Lease Amendment”) with Hershey Research Two, LLC, amending that certain Lease Agreement dated as of November
23, 2010, as amended by that certain First Amendment to Lease dated May 5, 2013 (as amended, the “Hershey Lease”) for the
lease of approximately 6,146 rentable square feet of laboratory and office space (the “Hershey Premises”) on the first (1st)
floor of the commercial condominium known as Hershey Research One, a Condominium, located at 1214 Research Boulevard, Hershey, Pennsylvania
(the “Hershey Project”) for vivoPharm’s laboratory and office use. vivoPharm also has a right of first offer to lease
certain space in the basement and second (2nd) floor of the Hershey Project. The Hershey Lease is guaranteed by vivoPHARM
Pty, Ltd., pursuant to a Guaranty of Lease dated November 23, 2010.
The
Hershey Lease Amendment extended the term of the Hershey Lease for five (5) years. Such extended term shall commence on February 1, 2022
and expire on January 31, 2027. vivoPharm has one (1) remaining option to renew the Hershey Lease for a period of five (5) years
pursuant to the terms and conditions set forth in the Hershey Lease. Beginning on the extended term commencement date, vivoPharm will
initially pay $16,389.33 per month in base rent during the first year of the extended term, which base rent will increase by two and
one-half percent (2.5%) on each anniversary of the extended term commencement date during the Hershey Lease term. In addition to base
rent, vivoPharm is responsible for payment of its pro rata share of operating expenses and property taxes for the Hershey Project.
vivoPharm
anticipates constructing certain improvements in the Hershey Premises, and is entitled to reimbursement of the cost of certain tenant
improvements to the Hershey Premises in an amount not to exceed $73,752.00.
The
foregoing description of the Hershey Lease Amendment does not purport to be complete and is qualified in its entirety by reference to
the full and complete terms of the Hershey Lease Amendment. The Hershey Lease Amendment does not materially change the Company’s
cost structure for this facility.