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LEASE AGREEMENT

Lease Agreement

LEASE AGREEMENT | Document Parties: SCIENTIFIC INDUSTRIES INC You are currently viewing:
This Lease Agreement involves

SCIENTIFIC INDUSTRIES INC

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Title: LEASE AGREEMENT
Governing Law: Pennsylvania     Date: 9/28/2007
Industry: Scientific and Technical Instr.     Sector: Technology

LEASE AGREEMENT, Parties: scientific industries inc
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                        LEASE AGREEMENT
                               
THIS LEASE is made and entered into this 1st day of August
2006 by and between Allegheny Homes, LLC whose principal
address is P.O. Box 38356, Pittsburgh, Pa 15238 (hereinafter)
referred to as "Landlord").

                              AND

Altamira Instruments, Inc., a Delaware Corporation, whose
principal address is 149 Delta Drive, Suite 200,
Pittsburgh,Pa. 15238 (hereinafter referred to as "Tenant")

1.    DISMISSED PREMISES: Landlord hereby leases to Tenant an
     area containing approximately 6,560 s.f. of
     office/warehouse/lab space (known currently as "Suite
     200", and as currently leased by the same tenant for the
     entire lease term.

2.    TERM:
       a.        The term of this lease shall be for a period
                of 60 months commencing as of August 1, 2006
                and expiring at the end of the 60th full
                calendar month thereafter.

       b.        Provided Tenant is not in default hereunder,
                Tenant shall have the right to renew the lease
                for five (5) years at the prevailing market
                rate as indicated by rentals charged for
                similarly situated real estate with the RIDC
                 Park, not to exceed 135% of the initial base
                rental rate.   Tenant must notify Landlord of
                its intentions via written notice 180 days
                prior to the lease termination.

3.    RENT: Tenant covenants and agrees to pay to Landlord at
     P.O. Box 38356, Pgh. Pa. 15238, or any other address as
     specified by Landlord during the first two years of this
     lease, as rent for the demised Premises an annual rental
     of $54,000.00 in monthly installments of $4,500.00. For
     years three, four and five the annual rent will be
     $56,400.00 in monthly installments of $4,700.00.

     The aforementioned rental shall be payable in advance in
     monthly installments as stated herein.   In the event any
      installment of rent is not paid on or before the fifth
     (5th) day of the month, a monthly late charge of fifteen
     (15%) percent of that installment of rent shall be due
     and payable by Tenant as additional rent.        

4.    SECURITY DEPOSIT: The Tenant has paid $5,125.00 to the
     Landlord as a deposit to the Landlord to stand as
     security for the payment by the Tenant of any and all
     present and future debts and liabilities of the Tenant to
     the Landlord and for the performance by the Tenant of all
     its obligations arising under or in connection with its
     lease collectively hereinafter the "Obligations".   In the
     event the Landlord disposes of its interest in this
     lease, the Landlord shall credit the deposit to its
     successors and thereupon shall have no liability to the
     Tenant.   Subject to the foregoing and to the Tenant not
     being in default under this lease, the Landlord shall
     repay the security deposit to the Tenant without interest
     at the end of the Term or sooner termination of the lease
     provided that all obligations of the Tenant to the
     Landlord are paid.   
 
5.    INSPECTION: Tenant covenants and agrees to permit
     Landlord or Landlord's authorized representative to enter
     the Premises for the inspection thereof, at any
     reasonable time during normal business hours, and during
     the 120 days prior to the expiration of Tenant's final
     lease term, for the purpose of showing the same to
     prospective tenants and/or purchasers.   Landlord may
     place signs on or about said premises to indicate that
     same are for sale or rent, which signs shall not be
     removed or obliterated or hidden by Tenant.   Landlord
     shall further have the right to access to make such
     repairs to the building, or any parts thereof, which
     Landlord may deem desirable or necessary for the safety
     or preservation of the same.

6.    BUILDING EXPENSES: During the term of this lease and any
     renewal thereof, Landlord shall be responsible for direct
     payment of all operating costs associated with the
     premises including electric, gas, water and sewer
     consumption, real estate taxes, insurance, snow removal
     and landscaping.

7.    ADDITIONAL RENT: During the term of this lease, and any
     extension or renewal thereof, Tenant shall pay within
     thirty (30) days of billing by Landlord, as additional
     rent, their pro-rata share of any increases after the
     first base year of 2005, in real estate taxes, insurance
     premiums, water, sewer, maintenance, lawn care and snow
     removal expenses relating to the operation of the
     building, at the option of the Landlord.   If the Landlord
     chooses to bill for such increases, Landlord shall
     provide the bill within 60 days of such increases.
     Landlord shall provide the bill within 60 days of such
     increase and shall provide Tenant an accounting of such
     increases.

8.    JANITORIAL/RUBBISH: Tenant shall be responsible for the
     sole cost of janitorial service and rubbish removal.

9.    REPAIRS: Landlord shall be responsible for the following
     repairs:

      (a)        Landlord shall deliver HVAC, electrical,
                plumbing, and other systems to Tenant in good
                working order upon lease commencement and
                shall be responsible for repairs and
                maintenance of same throughout this lease.
      (b)        Landlord shall be responsible for the
                maintenance, repair and/or replacement of the
                roof, exterior walls, and structural
                components of the building.
      (C))       Tenant shall be responsible for all routine
                maintenance and upkeep to the Premises.

     However, in no event shall Landlord be required to make
     any repairs or replacements caused by the acts,
     omissions, or negligence of Tenant, its agents, servants,
     employees, contractors, business invitees, and persons
     making deliveries to the demised Premises.
    
10.   ALTERATIONS: Tenant shall not make any alterations,
     additions or improvements to the demised Premises without
     the prior written consent of Landlord, which consent
     shall not be unreasonably withheld.

11.   AMERICANS WITH DISABILITIES ACT: Landlord makes no
     representation that the Premises are in compliance with
     the Americans With Disabilities Act, any regulations
     promulgated thereunder or any similar state or local
     regulatory scheme.   Tenant assumes full liability and
     responsibility for any alterations necessary to render
     the Premises to compliance with such laws.

12.   FIRE OR OTHER CASUALTY: If the building is damaged by
     fire or any other casualty to such an extent that the
      cost of restoration, as reasonable estimated by Landlord,
     will equal or exceed fifty (50%) percent of the
     replacement value of the building(exclusive of
     foundations) just prior to the occurrence of the damage,
     then Landlord may, within sixty (60) days of the date of
     the fire or other casualty, terminate the lease by notice
     in writing to Tenant.   Said termination shall be
     effective on the last day of the month in which notice is
     given or within ten (10) days of the date notice is
     given, whichever date is later.   Tenant shall surrender
     possession of the demised Premises on the effective date
     of termination of the lease and prepaid and unpaid rent
     and additional rent shall be apportioned as of said date.

     If the cost of restoration as reasonably estimated by
     Landlord shall amount to less than fifty (50%) percent of
     said replacement value of the building, or if despite the
     cost Landlord does not elect to terminate this lease,
     Landlord shall restore the building with reasonable
     promptness, subject to Force Majeure, as hereinafter
     defined, and neither Landlord nor Tenant shall have the
     right to terminate this lease.   Landlord shall not be
     required to restore the fixtures and improvements owned
     or installed by Tenant.

     In the event the demised Premises are rendered totally
     unusable as a result of fire or other casualty, Landlord
     shall not be required to restore or repair the demised
     Premises but shall have the sole choice or option to do
     so and shall notify Tenant of Landlord's choice or option
     within sixty (60) days of the fire or other casualty.   In
     the event Landlord elects not to restore or repair the
     demised Premises, all rights and obligations of the
     Landlord and Tenant hereunder shall cease and terminate
     as of the day of such fire or other casualty and prepaid
     or unpaid rent shall be immediately adjusted as of such
     date.    

     In any case in which the use of the demised Premises is
     affected by any such damage, there shall be either an
     abatement or an equitable reduction in rent depending on
     the period for which and to the extent the demised
     premises are not reasonably useable for the purposes for
     which they are leased hereunder.   If the damage results
     from the fault of Tenant, or Tenant's agents, servants,
     invitees or licensees, Tenant shall not be entitled to
     any abatement or reduction of rent, except to the extent,
     if any, that Landlord receives the proceeds of rent
     insurance in lieu of rent.             

13.   INDEMNITY AND INSURANCES: Landlord and Tenant each
     covenant and agree that it will protect and save and keep
     the other party forever free and harmless and indemnified
     against and from any and all claims on account of any and
     all losses, costs, damages or expenses arising out of any
     failure of Landlord or Tenant in any respect to comply
     with and perform all the terms, conditions, covenants and
     provisions in the within lease to be performed by such
     party.   Notwithstanding the foregoing, Landlord and
     Tenant shall not indemnify or hold harmless the other
     party for any claims, loss, cost, damage and/or expenses
     arising or resulting from any intentional act, negligence
     or omission of such other party.   The parties'
     obligations under this Paragraph are subject to the
     Waiver of Subrogation set forth in Paragraph 28, hereof.
      Tenant shall, during the term of this lease and any
     extension thereof, Tenant shall provide and maintain
     comprehensive general public liability insurance insuring
     Landlord and Tenant against all bodily injury or property
     damage occurring on the Premises with limits of One
     Million Dollars ($1,000,000.00) in respect to any one
     occurrence with such deductibles as Tenant may
     customarily carry in the conduct of its business.

     Insurance hereof shall be written with a reputable
     company or companies authorized to engage in the business
     of general liability insurance in the Commonwealth of
     Pennsylvania.   Policies of insurance issued by said
     companies shall name the Landlord as an additional
     insured.   Tenant shall furnish Landlord, at least fifteen
     (15) days prior to the commencement of the term of this
     lease, and thereafter at least fifteen (15) days prior to
     the expiration of any policy, with customary insurance
     certificate evidencing such insurance, which provided
     that Landlord shall receive at least fifteen (15) days
     prior notice in writing of the cancellation of any such
     insurance policy.   In the event Tenant fails to furnish
     such certificate, Landlord may, but shall not be required
     to, obtain such insurance and the premiums on such
     insurance shall be deemed additional rental to be paid by
     Tenant to Landlord upon demand.

     Landlord shall maintain during the term of this lease all
     risk insurance insuring the building and property of
     which the Premises are a part in an amount equal to the
     replacement value thereof.

14.   PROPERTY IN DEMISED PREMISES: All personal property of
     every kind or description that may at any time be in or
     on the demised Premises shall be at Tenant's sole risk or
     at the risk of other claiming under the Tenant and the
     Landlord shall not be liable for any damage to said
     property or loss suffered by the business or occupation
     of Tenant caused in any matter whatsoever.

     At the expiration of the term herein provided or any
     renewals thereof, the Tenant may remove al the trade
     fixtures, provided all the terms and conditions of this
     lease have been fully performed by Tenant and rents
     hereinbefore stipulated are paid in full and all damage
     to the demised Premises caused by the removal of said
     trade fixtures is repaired.   Subject to the foregoing,
     all alterations, leasehold improvements, and additions
     affixed to the demised Premises installed by Tenant at
     the demised Premises shall remain upon the demised
     Premises at the end of the term of the lease and shall
     become the property of Landlord, except as may be set
     forth on an exhibit to this lease, and which Tenant may
     remove, without injury or defacement of the demised
     Premises and provided all of the terms and conditions of
     this lease have been fully performed by Tenant and rents
     hereinbefore stipulated are paid in full, and all damage
     to the demised Premises caused by the removal of said
     items is repaired.

15.   ASSIGNMENT AND SUBLETTING: Tenant may not assign this
     lease or sublet the whole or any part of the demised
     Premises or permit any other person to occupy the whole
     or any part of the demised Premises without the prior
     written consent of Landlord to Tenant, which consent
     shall not be unreasonably withheld.   Tenant shall provide
     Landlord with all information reasonably requested to
     enable Landlord to make an informed decision as to any
     assignment or subletting, and Landlord shall inform
     Tenant of its decision as to any assignment or
     subletting, and Landlord shall inform Tenant of its
     decision within a reasonable period of time after receipt
     of such information.

16.   CONDEMNATION: If the whole of the demised Premises shall
     be taken by any government or publ  


 
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