N O T E 1 0 : C O M M I T M E N T S A N D C O N T I N G E N C I E S Employee Retirement Savings Plan Concentration of Credit Risk Commitments N O T E 1 1 : S T O C K O P T I O N P L A N S A N D S T O C K G R A N T S 1997 Stock Plan P 39 In 1997, we adopted a stock option and incentive plan (the “Stock Plan”) for the purpose of attracting and retaining the highest quality personnel, providing for additional incentives and promoting the suc- cess of the company by providing employees the opportunity to acquire common stock pursuant to (i) options to purchase common stock; and (ii) share awards. As of December 31, 2004, a total of 218,790 shares were reserved for the granting of future options and share awards under the Stock Plan.  Options under our plan have been granted at prices that are equal to the market value of the stock on the date of grant and expire ten years after the date of grant. Employee options vest ratably in three annual installments from the date of grant. Non-employee director options vest immediately on the date As of December 31, 2004, we were committed under the terms of construction contracts to complete the construction of properties under development at a remaining aggregate cost of $18.3 million.  As of December 31, 2004, we were also committed to fund approximately $23.2 million for the con- struction of building infrastructure improvements under the terms of leases and/or construction con- tracts and approximately $17.2 million for certain investments.  Ground lease obligations as of December 31, 2004 include leases at seven of our properties and one land development parcel.These lease obligations, of approximately $65.3 million, have remaining lease terms of 28 to 51 years, exclusive of extension options.  We generally do not require collateral or other security from our tenants, other than security deposits. In addition to security deposits held in cash, we held $32.9 million in irrevocable letters of credit avail- able from certain tenants as security deposits for 73 leases as of December 31, 2004. We are dependent on rental income from relatively few tenants in the life science industry.The inabil- ity of any single tenant to make its lease payments could adversely affect our operations.As of December 31, 2004, we held leases with a total of 213 tenants and 64 of our 112 properties were each leased to a single tenant. At December 31, 2004, our three largest tenants accounted for approximately 11.6% of our aggregate annualized base rent.  We maintain our cash and cash equivalents at insured financial institutions.The combined account bal- ances at each institution periodically exceed FDIC insurance coverage, and, as a result, there is a con- centration of credit risk related to amounts in excess of FDIC insurance coverage.We believe that the risk is not significant.  We have a retirement savings plan pursuant to Section 401(k) of the Internal Revenue Code whereby our employees may contribute a portion of their compensation to their respective retirement accounts, in an amount not to exceed the maximum allowed under the Internal Revenue Code.We have elect- ed to provide discretionary profit sharing contributions (subject to statutory limitations), which amount- ed to $515,000, $461,000 and $428,000, respectively, for the years ended December 31, 2004, 2003 and 2002. Employees who participate in the plan are immediately vested in their contributions and in the contributions of the company.  Preferred Stock and Excess Stock Authorizations Our charter authorizes the issuance of up to 100,000,000 shares of preferred stock, of which 7,485,500 shares were issued and outstanding as of December 31, 2004. In addition, 200,000,000 shares of “excess stock” (as defined) are authorized, none of which were issued and outstanding at December 31, 2004.  On or after June 29, 2009, we may, at our option, redeem our Series C preferred stock, in whole or in part, at any time for cash at a redemption price of $25.00 per share, plus accrued and unpaid dividends.