On February 5, 2019, we, through our wholly owned subsidiary Chembio Diagnostic Systems Inc., entered into a commercial real estate lease with Myra Properties, LLC for new corporate headquarters comprised of 70,000 square feet of office, research and development, and warehouse space located at 555 Wireless Boulevard, Hauppauge, New York. The lease has an initial term of eleven years that can be extended, at our option, for two additional terms of five years each. Rent under the lease, which is payable in monthly installments, totals approximately $900,000 for the initial year and then increases by approximately three percent each succeeding year. The lease contains customary representations, warranties, covenants and termination provisions.

On February 5, 2019, we, through Chembio Diagnostic Systems Inc., also entered into an agreement of sublease with Reliance Communications of New Jersey, LLC, an affiliate of Myra Properties, LLC, to sublet space located at 91-1A Colin Drive, Holbrook, New York that currently provides us with warehouse space and supplemental administrative offices. We lease these premises from Sherwood Corporate Center, LLC to a commercial real estate lease dated February 4, 2013 that, as modified by an extension letter dated September 19, 2017, will terminate on April 30, 2020. The sublease has a term that will (a) commence on the later of March 18, 2019 and the date we vacate the premises and (b) terminate on April 29, 2020. Reliance Communications, Inc. will pay us 50% of our rent and additional rent payments, which will total approximately $100,000 per year during the term of the sublease.

The foregoing descriptions do not purport to be complete and are subject to, and qualified in their entirety by, the full text of the lease and sublease, which are included as Exhibits 10.1 and 10.2, respectively, to this report and are incorporated herein by reference.