THIS LEASE, made this 11th Day of September, 2000, by and between Winton Industrial Center, Inc.
(hereinafter referred as "Landlord"), and Aradigm Corporation, a California corporation (hereinafter referred to
1. LEASED PREMISES. Landlord hereby demises and leases to Tenant that certain space located at 2704
West Winton Avenue, Hayward, California, which space contains approximately 125,880 square feet which the
northern section of Building #5 containing a total of 212,971 square feet, as more fully described on Exhibit "A",
attached hereto and made a part hereof (hereinafter referred to as the "Premises"), plus the use of all common
areas in and about Landlord's building, and the real estate thereunder (hereinafter referred to as the "Property").
Tenant has inspected the Premises and accepts the same in its present "AS IS" condition, acknowledging that the
Premises are in good order and satisfactory condition as of the date of Tenant's possession. Tenant further
acknowledges that Landlord has made no representations to Tenant with respect to any alterations, repairs or
improvements to be constructed within the Premises.
2. USE. The Premises shall be used only for the purpose of general offices and/or receiving, storing, shipping
materials and light manufacturing of products and merchandise made and/or distributed by Tenant. Outside
storage including, without limitation, drop shipments, dock storage, trucks and other vehicles, is prohibited
without Landlord's prior written consent. Tenant shall obtain, at Tenant's sole cost and expense, any and all
licenses and permits necessary for Tenant's contemplated use of the Premises. Tenant shall comply with all
existing and future governmental laws, ordinances and regulations applicable to the use of the Premises, as well as
all requirements of Landlord's insurance carrier. Tenant shall not permit any objectionable or unpleasant odors,
smoke, dust, gas, noise or vibrations to emana