1. Leases for the premises and parking spaces 80 Peter Merian-Strasse, Basel, Switzerland

     4002 Basel

     [Switzerland]

Rent payments begin on April 1, 2001. Duration of lease is for 8 years thereafter, until Mar. 31, 2009

180 Sw. Fr. per m² per yr. = 297,000.00 Sw. Fr.

300 Sw. Fr. per m² per yr. =  330,000.00 Sw. Fr.

300 Sw. Fr. per m² per yr. = 2,190,000.00 Sw.Fr.

0 Sw. Fr. per m² per yr. =                    0.00 Sw.Fr.

Operating Exp.: Sw. Fr. 20,930.00 per mo.

(Note: Operating expenses for the parking spots are included in the rent.)

Shared Costs: Sw. Fr. 16,750.00 per mo.

(Note: the shared costs for the parking spots are included in the rent.)

Value-added tax not included.

Operating expenses and shared costs will be adjusted proportionately to the amount of office space still being rented.

HK and BK Account:

(prior to increase effective 8/1/2003:)

(after increase effective 08/01/2003:)

7.60% Value Added Tax:

(prior to increase effective 8/1/2003:)

(after increase effective 08/01/2003:)

Rents are adjusted, with the rent in the original lease as the base rent, according to the changes in the Regional Consumer Price Index of the Federal Authority for Industry, Trade and Labor. If the index has changed since the beginning of the lease or the last rent adjustment, whichever applies, the rent may be adjusted on April 1 of every year, beginning on April 1, 2002.

Rent Increase Adjustment of 101.40 P. as of 09/30/2001 to 102.80 P. as of 05/31/2003

(after increase effective 8/1/2003:)

•

[as per original leases of 12/8/2000 - 1/17/2001:]

The tenant has the right to renewing the original lease for another 3 years.

Effective date: March 31, 2009 (upon expiry of original lease)

Notice period: At least 12 months before expiry of original lease.

•

•

[as per original leases of 12/8/2000 - 1/17/2001:]

During the 8-year firm duration of the lease the tenant has the right to terminate the lease, effective 3/31/2009, with a notice period of 12 months.

During the firm duration of a possible renewed lease (4/1/2009-3/31/2012) the tenant has the option of terminating the lease effective at the end of any month, with a notice period of 12 years.

[as per supplement to lease dated 11/8/2002:]

The tenant, with the landlord’s consent, is terminating the lease with regard to the following areas in a phased schedule, with the lease for these areas being taken over by Novartis Pharma AG:

2^nd [American: 3^rd] floor: by January 31, 2003

3^rd [American: 4^th] floor: by January 31, 2003

4^th [American: 5^th] floor: by February 28, 2003

5^th [American: 6^th] floor: by February 28, 2003

20 parking spots: by January 31, 2003

30 parking spots: by March 31, 2003.

For the remaining leased areas, the existing leases remain in effect unchanged.

[as per original leases of 12/8/2000 - 1/17/2001:]

Adjustments may be made on April 1 of every year, starting with April 1, 2002. See “Rent Increases” above for details.

The increase is calculated according to the formula:

: 80% of base rent x new index + 20% of base rent = new rent

                base index

That is, 80% of the base rent is adjusted, while 20% of the base rent remains stable..

[as per original lease, 12/8/2000-1/17/2001:]

6^th [American: 7^th] floor (Technology):

1^st-5^th [American: 2^nd-6^th] floors (Offices):

Ground floor (Offices):

1^st and 2^nd basement levels (Storage):

(of which 775 m² with daylight, and 875m² solely for storage)

[as per supplement to lease dated 11/8/2002 (as of April 1, 2003):]

1^st and 2^nd basement levels

Ground floor:

1^st [American: 2^nd] floor

[as per original lease, 12/8/2000-1/17/2001:]

2^nd Basement:

Ground floor:

Total:

Rent: 2^nd Basement:

          Ground Floor:

          Total:

[as per supplement to lease dated 11/8/2002 (as of April 1, 2003):]

16 parking spots (Nos. 100-115)

Basic rent for the 16 parking spaces:

(Sw. Fr. 4,317.00 per m²)                            Sw. Fr. 69,072.00

1.      Lease for the office space, dated 12/8/2000-1/17/2001, signed by tenant and landlord.

2.      General provisions for all business leases in 80 Peter Merian-Strasse, Basel, applicable unless other provisions are made for any specific point in the individual leases. Dated 12/8/2000-1/17/2001, signed by landlord and tenant.

3.      Separate unsigned page regarding architecture and art in the Peter Merian-Haus, labeled as an integral part of the lease, dated 11/7/2000.

4.      Separate lease for the parking spaces, dated 12/8/2000-1/21/2001, signed by tenant and landlord

5.      Supplement No. 1 to the lease for the office space, dated 1/16/2001, signed by tenant and landlord.

6.      Supplement No. 1 to the lease for the parking spaces, dated 1/16/2001, signed by tenant and landlord.

7.      Supplement to lease, dated 11/8/02, signed by landlord and tenant.

8.      Notification from management company dated Nov. 11, 2002, signed by the management company (Wincasa)

9.      Amendment to Lease (tent increase notice) dated 06/17/2003, effective 08/01/2003, signed by management company.

[as per original leases of 12/8/2000 - 1/17/2001:]

After the expiry of the 8-year period (or, if the lease is renewed, the 11-year period), the lease will automatically be extended from year to year, so long as neither the landlord nor the tenant has exercised their right to terminate.

[as per general provisions for all business leases at 80 Peter Merian-Strasse:]

Premises must be returned completely cleared and flawless. The tenant must return the premises to their original condition. Should the tenant not make any repairs which he is obligated to make, the landlord may have them made at the tenant’s expense.

Note: Both the original lease for the office space (§ 11) and the original lease for the parking spots (§ 13) state that in all circumstances not expressly mentioned in the lease (presumably including also the general provisions), the provisions of the Swiss Code of Obligations, Title 8,

“Leases and Rentals,” and the Regulations Concerning the Leasing and Rental of Residential and Business Spaces of 05/09/1990, automatically apply.

[as per original leases, 12/8/2000-1/17/2001]

Office space:

Owner/Lessor:

Management Company:

Lessee/Tenant:

Parking Spots:

Owner/Lessor:

Ost [Bahnhof Ost (Railroad Station East)

Urban Building Association]

(value-added tax no. 461,056)

Management Company:

Lessee/Tenant:

Owner/Lessor:

Management Company:

[Wincasa Real Estate Services]

[Basel Branch]

Person dealing with the account: Remo Fumagali

Tel.: 061/270 90 72;

E-mail: ***@***

Lessee/Tenant