Option Agreement Between The Registrant And Ndsu Research & Technology Park, Inc.

Exhibit 10.24

OPTION AGREEMENT

THIS OPTION AGREEMENT is made as of the 3 rd day of October, 2003, between NDSU Research and Technology Park, Inc., a North Dakota non-profit corporation (" NDSURTP" ), whose address is 1735 NDSU Research Park Drive, Fargo, North Dakota 58102, and Alien Technology Corporation, a California corporation (" Alien" ), whose post office address is 18220 Butterfield Boulevard, Morgan Hill, California, 95037.

1. GRANT OF OPTION : In consideration of and subject to the agreements and obligations set forth below, NDSURTP grants the exclusive right and option to Alien to lease the entire tract of land being hereinafter described as follows (the " Option Property" ): Lot 5, Block 1, NDSU Research and Technology Park Second

Addition to the City of Fargo, Cass County, North Dakota.

2. OPTION MONEY : Upon the execution of this Agreement, Alien has simultaneously paid to NDSURTP, the sum of US $1,000.00 as " Option Money." In order to keep the option operative, Alien shall pay to NDSURTP, the sum of $1,000.00 on or before November 1, 2003 and the first day of each month thereafter through the option term and until rent becomes payable under the Lease between the parties. Alien' s failure to timely remit these payments, and the continuation of such failure for 5 days following written notice from NDSURTP, shall render this option null and void and NDSURTP shall be entitled to retain all Option Money thereto paid.

3. TERMS OF LEASE : The parties acknowledge that NDSURTP is currently negotiating a lease (" Ground Lease I" ) with Renaissance Development LLC (" Renaissance" ), whereby Renaissance will build certain improvements on Certain real property adjacent to the Option Property for use and occupancy by Alien. The parties anticipate Ground I Lease will be fully negotiated and executed by November 15, 2003. If Ground Lease I is negotiated and executed by NDSURTP and Renaissance on or prior to November 15, 2003, NDSURTP and Alien shall, for 60 days following the date of such execution and using Ground Lease I as the basis, negotiate in good faith for a final and definitive form of ground lease (" Ground Lease II" ) representing the parties leasing arrangement in the event Alien executes its option under this Agreement. When Ground Lease II has been fully negotiated, the parties shall execute an amended and restated version of this Agreement, attaching thereto the definitive Ground Lease II form, which the parties shall, without condition, promptly execute should Alien exercise its option hereunder.

4. EXPIRATION DATE : The option herein granted shall be exercised, if at all, not later than December 31, 2005 at 5:00 P.M. The Option Money payments required hereunder shall continue from the date Alien exercises its option and through the earlier to occur of: (a) the date this Agreement terminates, or (b) the date Alien exercises its option. At Alien' s sole discretion, Alien shall have the right to terminate this Option Agreement, without cost or penalty beyond Option Money Payments before then due or paid, immediately upon delivery of written notice to NDSURTP.

5. METHOD OF EXERCISE : This option shall be exercised by written notice signed by Alien and provided to NDSURTP within the time fr ...