Exhibit 10.08(a) FIRST AMENDMENT TO LEASE This FIRST AMENDMENT is made on this 21st day of October, 1994 between CEMANUDI ASSOCIATES, an Illinois Limited Partnership ("Lessor") and NELCO TECHNOLOGY, INC., an Arizona corporation ("Lessee"). A. Lessor and Lessee previously entered into that certain Lease dated August 31, 1989 for the lease of the premises commonly known as II 04 West Geneva Drive, Tempe, Arizona ("Lease"). B. Lessor and Lessee now desire to extend the term of the Lease, subject to the terms and conditions set forth in this First Amendment. Lessor and Lessee agree as follows: 1. Definitions. All of the terms used in this First Amendment shall have the same meanings set forth therefor in the Lease, except to the extent expressly set forth otherwise herein. 2. First Extension Term. The term of the Lease is hereby extended for the period ("First Extension Term") commencing on and including September 1, 1994 and ending at 11:59 P.M. (local time at the Demised Premises) on August 31, 1999. 3. First Extension Term Annual Net Basic Rent. Lessee agrees to pay to Lessor Annual Net Basic Rent during the First Extension Term as follows: (a) During the period commencing on and includ ing September 1, 1994 and ending August 31, 1997, Lessee shall pay to Lessor as Annual Net Basic Rent the greater of (i) Sixty-Nine Thousand Seven Hundred Fifty-Eight and 40/1 00 Dollars ($69,758.40), or (ii) an amount equal to the product of Sixty-Three Thousand Eight Hundred Seventeen and 20/100 Dollars ($63,817.20) multiplied by a fraction which has as its denominator the United States All Item Consumer Price Index (I 982-1984 = I 00), All Urban Consumer Section, issued by the Bureau of Labor Statistics, U.S. Department of Labor ("CPI-U") published for August, 1989 and as its numerator the CPI-U published for August, 1994 ("Initial Rent"). (b) During the period commencing on and includ ing September 1, 1997 and ending August 31, 1999, Lessee shall pay to Lessor as Annual Net Basic Rent the greater of (i) the Initial Rent, or (ii) an amount calculated by the following formula: (A)x (.50) x {(B/C - 1.00} + A = Annual Basic Rent during the last two (2) years of extended term of lease. where A = Initial Rent where B = The CPI-U published for August 1997, the period immediately prior to the commencment date of the last two year period of the extended term. where C = The CPI-U published for August 1994, the period immediately prior to the commencment date of the five year extended term. Such Annual Net Basic Rent shall be paid to Lessor in equal monthly installments on or before the first day of the First Extension Term and on or before the first day of each successive calendar month throughout the First Extension Term. 4. Full Force and Effect. Except to the extent expressly provided otherwise in this First Amendment, all of the terms and conditions set forth in the Lease shall remain in full force and effect. 5. Conflicts. In the event that any of the provisions of the Lease conflict with any of the terms and provisions of this First Amendment, the terms and provisions of this First Amendment shall prevail. 6. Time of Essence. Time is of the essence of each and every term of this First Amendment. IN WITNESS WHEREOF, said Lessor and Lessee have caused this instrument to be executed by their respective duly authorized officers, all as of the day and year first written above. LESSOR CEMANUDI ASSOCIATES, an Illinois Limited Partnership By CMD CORPORATION By:___________________ Its: Vice President LESSEE NELCO TECHNOLOGY, INC., an Arizona corporation By:___________________ Its: Vice President and General Manager [Exhibis-02-10.08a]bd