Common use of Basic Annual Rent Clause in Contracts

Basic Annual Rent. Commencing on the earlier of (i) sixty (60) days after the Commencement Date (which 60-day period is hereinafter referred to as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during the Lease Term “Basic Annual Rent” payable in equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, in advance on the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if the Lease Term shall commence on a day other than the first day of a month, Tenant shall pay on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreement.

Basic Annual Rent. Commencing on Tenant shall pay as Basic Annual Rent for the earlier Premises the initial sum shown in Item 4 of (i) sixty (60) days after the Basic Lease Provisions, subject to adjustment as set forth in Item 6 of the Basic Lease Provisions. The foregoing notwithstanding, beginning upon the Commencement Date (which 60-day period is hereinafter referred to and continuing through June 30, 2002, Tenant's obligation for the payment of Basic Annual Rent and Additional Rent shall be the same as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business provided in the Building (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during the Lease Term “Basic Annual Rent” payable Sublease in equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, in advance on the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if the Lease Term shall commence on a day other than the first day of a month, Tenant shall pay on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage lieu of the Basic Annual Rent and Additional Rent otherwise stated in this Lease. The Sublease is attached hereto as Exhibit "F". Beginning on July 1, 2002, the Basic Annual Rent and Additional Rent specified herein shall be applicable as between Landlord and Tenant. The Basic Annual Rent shall be payable by Tenant in advance in equal monthly installments as shown in Item 5 of the Basic Lease Provisions without deduction or offset, commencing on the Commencement Date and continuing on the first day of each calendar month thereafter. In the event the term of this Lease commences or ends on a day other than the first or last day of a calendar month, then the Basic Annual Rent for such partial month shall be prorated in the proportion that the number of days this Lease is in effect during such periodpartial month bears to the number of days in that calendar month, which percentage and such Basic Annual Rent shall be equal to paid at the percentage commencement of the Building occupied by Tenant during such periodpartial month. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment The first monthly installment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment payable by Tenant pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term this Lease shall be determined by multiplying the Rentable Area paid to Landlord concurrently with Tenant's execution and delivery of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the this Lease Commencement Agreementto Landlord.

Basic Annual Rent. Commencing on the earlier of (ia) sixty (60) days after the Commencement Date (which 60-day period is hereinafter referred to as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during the Lease Term “Basic Annual Rent” basic annual rent for the Premises in the total amount, but payable in the equal monthly installments installments, shown in Item 5 of the Basic Lease Provisions or in the Addendum, subject to the adjustment as set forth below without any deductionsprovided in the Addendum or in Section 3.1(c) hereof, recoupments, or set-offs, due and without demand, in advance payable on the first day of each and every calendar month in each lease year during advance, commencing on the Lease Term; providedCommencement Date and continuing throughout the term of this Lease, however, except that if the Lease Term shall commence Commencement Date occurs on a day other than the first day of a month, then the rent payable hereunder shall be prorated on a daily basis and the rent for the partial month following the Commencement Date shall be payable on the first day of the term of this Lease. No demand, notice or invoice shall be required. Tenant shall pay receive a credit against the first installment or installments of minimum rental payable under this Section 3.1 in an amount equal to the prepaid rent specified in Item 9 of the Basic Lease Provisions. All rents and other sums payable by Tenant to Landlord under this Lease shall be paid to Landlord, without offset or deduction, in lawful money of the United States of America at the address for Landlord shown in Item 11 of the Basic Lease Provisions, or to such other person or at such other place as Landlord may from time to time designate in writing. (b) As used herein "Lease Year" shall be a period of twelve (12) consecutive months commencing on the Rent first full calendar month during the lease term; provided that the first Lease Year shall also include any partial calendar month following the Commencement Date. (c) Basic annual rent, as set forth in Item 5 of the Basic Lease Provisions, shall be increased once per year if the Consumer Price Index, Los Angeles-Anaheim-Riverside, All Urban Consumers, All Items (1982-1984=100), published monthly by the Bureau of Labor Statistics of the U.S. Department of Labor ("Bureau"), increases over the Base Index. The Base Index shall be the Consumer Price Index for the calendar month in which the Commencement Date occurs. The Base Index shall be compared with the Consumer Price Index for the fractional part of a same calendar month at for each subsequent year ("Comparison Month"). If the beginning Consumer Price Index for any Comparison Month is higher than the Base Index, then the Minimum Rent for the annual period commencing on the first day of the term, a prorated amount second calendar month following such Comparison Month shall be increased above that payable pursuant to Item 5 of one month’s rentthe Basic Lease Provisions for the initial year of the term by the identical percentage. Notwithstanding In no event shall the foregoing, in Minimum Rent be reduced by reason of the operation of this Section 3.1(c). (d) In the event that Tenant occupies only a portion of the Building at any time during the Fit-Up Periodterm of this Lease, then Tenant shall pay to Landlordany governmental law, for rule or regulation prohibits or postpones in whole or in part any increase in the balance rent or in the payment of the Fit-Up Period only, a percentage of the Basic Annual Rent and Additional Rent otherwise other sums payable by Tenant during hereunder to be made pursuant to this Lease, then, and in either of such periodevents, which percentage such increase or payment shall be equal made to the percentage of maximum extent permissible by law at the Building occupied by Tenant during time provided in this Lease, and/or at any time or times thereafter such period. In increase or payment, or any eventportion thereof, upon may lawfully be made and any such increase in rent, or any portion thereof, or other sums payable hereunder, or portions thereof, the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent which has been so prohibited or postponed, shall thereafter become due and Additional Rent in their full amounts. Subject payable to adjustment pursuant to Sections 1(d) the maximum extent and 1(e) above and Rider No. 4 below, at the Basic Annual Rent for each year of the original term shall be determined earliest time or times permitted by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementlaw.

Basic Annual Rent. Commencing Tenant shall pay Basic Annual Rent for the Premises as provided for in the Lease through the Original Expiration Date. Following the Original Expiration Date, Basic Annual Rent shall be increased on November 1, 2018, and each subsequent November 1st during the earlier Term through the Extended Expiration Date by multiplying the Basic Annual Rent payable immediately before such Adjustment Date by the Rent Adjustment Percentage and adding the resulting amount to the Basic Annual Rent payable immediately before such Adjustment Date. Basic Annual Rent, as so adjusted, shall thereafter be due as provided herein. Adjustments of (i) sixty (60) Basic Annual Rent for any fractional calendar month shall be prorated. Notwithstanding the foregoing, so long as Tenant provides Landlord, within 30 days after the Commencement Date (which 60-day period is hereinafter referred Tenant’s delivery to as the “Fit-Up Period”) Landlord of an executed original of this Fourth Amendment, evidence reasonably satisfactory to Landlord that Tenant has paid all amounts outstanding to all third party vendors providing goods or (ii) the date services to Tenant commences operating its business in and/or the Building (the failure of which could result in a mechanics’ lien or mechanics’ liens being filed against the Premises or the Project), such earlier that all payments to such third party vendors are current as of the date being herein the “Rent Commencement Date”)of Tenant’s delivery of such evidence to Landlord, Tenant shall not be required to pay to Landlord during the Lease Term “Basic Annual Rent” payable in equal monthly installments as set forth below without any deductionsRent for the period commencing on August 1, recoupments2013, or set-offsthrough December 31, and without demand, in advance on the first day of each and every calendar month in each lease year during the Lease Term2013 (“Abatement Period”); provided, however, that if an event of default (beyond any applicable notice and cure periods) occurs under Section 5 of this Fourth Amendment or Section 24.4 of the Lease Term shall commence on a day at any time prior to the Extended Expiration Date, then, in addition to all other than the first day of a monthrights and remedies available to Landlord, Tenant shall pay on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall be required to immediately pay to Landlord, for the balance of the Fit-Up Period only, a percentage Landlord an amount equal to all of the Basic Annual Rent and Additional Rent otherwise that would have been payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Abatement Period had Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, not been abated during the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement AgreementAbatement Period.

Basic Annual Rent. Commencing on Initial Annual (and Monthly Rental Installments) of Basic Annual Rent for the earlier Additional Premises (“Additional Premises Basic Annual Rent”) only (starting as of (i) sixty (60) days after the Additional Premises Commencement Date (which 60-day period is hereinafter referred to as defined below)) shall be as follows: Rentable s.f. Annually Total Annual Total Monthly 91,368 $ 28 $ 2,558,304 $ 213,192 Starting on the “Fit-Up Period”Additional Premises Commencement Date (as defined below) or (ii) and continuing throughout the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”)Term, Tenant shall pay to Landlord during the Lease Term “Additional Premises Basic Annual Rent” payable Rent as set forth in this Section. The Additional Premises Basic Annual Rent shall be paid in equal monthly installments as set forth below without any deductionsinstallments, recoupments, or set-offs, and without demand, each in advance on the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if . The Basic Annual Rent for the Lease Term Additional Premises shall commence be subject to an annual upward adjustment of two and one-half percent (2.5%) of the then-current Basic Annual Rent (as adjusted under this Section 4). The first such adjustment shall become effective commencing on a day other than the first (1st) annual anniversary of the Additional Premises Commencement Date. Subsequent adjustments shall become effective on every successive annual anniversary of the Additional Premises Commencement Date (except the first day of a monthany Term extension pursuant to an Option) for so long as the Amended Lease continues in effect. In addition to Additional Premises Basic Annual Rent, Tenant shall pay on to Landlord as Additional Rent at times specified in the Rent Commencement Date for the fractional part Amended Lease: (a) Tenant’s Pro Rata Share of a month at the beginning Operating Expenses as provided in Article 8 of the term, a prorated amount of one month’s rent. Notwithstanding Amended Lease with respect to the foregoing, in the event Additional Premises and (b) any other amounts that Tenant occupies only a portion assumes or agrees to pay under the provisions of the Building during the Fit-Up Period, then Tenant shall pay Amended Lease that are owed to Landlord, for including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the balance agreements, terms, covenants and conditions of the Fit-Up Period onlyAmended Lease to be performed by Tenant, a percentage after notice and the lapse of the Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementapplicable cure periods.

Basic Annual Rent. Commencing on the earlier of (i) sixty (60) days after the Commencement Date (which 60-day period is hereinafter referred Tenant agrees to as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during as basic annual rent for the Lease Term Leased Premises at such place as Landlord may designate, without prior demand therefore and without any deduction or set off whatsoever an annual amount equal to the Cost of Construction multiplied by 8.75% (“Basic Annual Rent” .”) The Basic Annual Rent shall be due and payable in twelve (12) equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, to be paid in advance on or before the first day of each and every calendar month in each lease year during the Lease Term; provided. Commencing on the first anniversary of the Rent Commencement Date and on each anniversary of the Rent Commencement Date thereafter, however, that if Basic Annual Rent shall escalate at the Lease Term shall commence Escalation Rate. In the event the Rent Commencement Date occurs on a day other than the first day of a calendar month, Tenant then rent shall pay be paid on the Rent Commencement Date for the initial fractional part calendar month prorated on a per diem basis. Prior to the Rent Commencement Date, Landlord shall deliver notice to Tenant, certified as true and accurate, of a month Landlord’s calculation of Basic Annual Rent (the “Basic Annual Rent Notice”). Tenant acknowledges that all costs and expenses comprising the Cost of Construction which are used in the calculation of Basic Annual Rent may not be available at the beginning time Landlord delivers the Basic Annual Rent Notice, therefore, Landlord shall have the right, for a period of six (6) months after Landlord delivers the Basic Annual Rent Notice, to deliver written notice to Tenant (the “Adjusted Basic Annual Rent Notice”) adjusting Basic Annual Rent to reflect the actual Cost of Construction. If Landlord delivers an Adjusted Basic Annual Rent Notice, Tenant shall pay Basic Annual Rent as set forth in the Adjusted Basic Annual Rent Notice on the first day of the term, a prorated amount month immediately following Tenant’s receipt of one month’s rent. Notwithstanding the foregoingAdjusted Basic Annual Rent Notice and, in addition, on the event that Tenant occupies only a portion first day of the Building during the Fit-Up Periodmonth following Tenant’s receipt of an Adjusted Basic Annual Rent Notice, then Tenant shall pay to Landlord, Landlord the aggregate incremental difference in Basic Annual Rent for any prior months in the balance of event Basic Annual Rent as set forth in the Fit-Up Period only, a percentage of Adjusted Basic Annual Rent Notice is greater than the Basic Annual Rent and Additional set forth in the Basic Annual Rent otherwise payable Notice. If the Adjusted Basic Annual Rent Notice indicates that the Basic Annual Rent paid by Tenant during for any prior months exceeded the Basic Annual Rent set forth in the Adjusted Basic Rent Notice, Landlord, at its election, shall within thirty (30) days of Tenant’s receipt of such periodAdjusted Basic Annual Rent Notice, which percentage shall be equal either (a) pay the amount of such excess to Tenant, or (b) apply the incremental difference in Basic Annual Rent paid pursuant to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment Basic Annual Rent Notice against future installments of Basic Annual Rent and Additional Rent until such excess is applied in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementfull.

Basic Annual Rent. Commencing (A) Tenant agrees to pay as Basic Annual Rent for the Premises the initial sum shown in Item 6 of the Basic Lease Provisions. Except for months when this Lease is not in effect for the full calendar month (partial month), the Basic Annual Rent shall be payable in U.S. currency in equal monthly installments, hereinafter sometimes referred to as "Basic Monthly Rental Installments", in advance without notice, deduction, demand, offset, or abatement. Basic Monthly Rental Installments shall be in the initial sum shown in Item 7 of the Basic Lease Provisions. Payment of Basic Annual Rent shall commence on the earlier of (i) sixty (60) days after the Commencement Date (which 60-day period is hereinafter referred to as except that the “Fit-Up Period”) or (ii) first month's rent shall be due upon the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”signing of this Lease), Tenant shall pay to Landlord during the Lease Term “Basic Annual Rent” payable in equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, in advance continue on the first day of each and every calendar month in each lease year thereafter except that Basic Rent for any partial month during the term hereof shall be prorated in the proportion that the number of days this lease is in effect during such partial month bears to the number of days in that calendar month, and shall be paid at the commencement of such partial month, and except further that the Basic Monthly Rental Installment for the first full calendar month of this Lease Term; providedfor which an installment of Basic Annual Rent is due will be paid on execution hereof. (B) In addition to the Basic Annual Rent stipulated herein, howeverTenant covenants and agrees to pay Landlord without offset or deduction as additional Rent, that if hereinafter "Additional Rent", all other sums and charges which are to be paid by Tenant pursuant to the Lease Term terms of this Lease. Except as otherwise provided in this Lease, Additional Rent shall commence be due and payable on a day other than the first day of a month, the month following the date on which Tenant shall pay on the is given notice that Additional Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rentis due. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Rent means Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement AgreementRent.

Basic Annual Rent. Commencing on (A) Tenant agrees to pay as Basic Annual Rent for the earlier Premises the initial sum shown in Item 6 of the Basic Lease Provisions. Except for months when this Lease is not in effect for the full calendar month (i) sixty (60) days after partial month), the Commencement Date (which 60-day period is Basic Annual Rent shall be payable in U.S. currency in equal monthly installments, hereinafter sometimes referred to as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during the Lease Term “"Basic Annual Rent” payable in equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demandMonthly Rental Installments", in advance without notice, deduction, demand, offset, or abatement. Basic Monthly Rental Installments shall be in the initial sum shown in Item 7 of the Basic Lease Provisions. Subject to the rental abatements provided herein, payment of Basic Annual Rent shall commence on the Manufacturing CO Date (except that the first month's rent shall be due upon the signing of this Lease), and continue on the first day of each and every calendar month in each lease year thereafter except that Basic Monthly Rental Installments for any partial month during the Term hereof shall be prorated in the proportion that the number of days this Lease Term; providedis in effect during such partial month bears to the number of days in that calendar month, howeverand shall be paid at the commencement of such partial month, and except further that if the Basic Monthly Rental Installment for the first full calendar month of this Lease for which an installment of Basic Annual Rent is due will be paid on execution hereof. (B) Notwithstanding anything above to the contrary and provided that Tenant is not in default of Tenant’s monetary obligations under this Lease after notice and the passage of any applicable cure period, Landlord hereby agrees to axxxx Tenant's obligation to pay Tenant's Basic Monthly Rental Installments for the 1st, 2nd, 3rd, 25th, 26th, and 27th months following the Manufacturing CO Date. During such abatement period, Tenant shall still be responsible for the payment of all Additional Rent and other monetary obligations under the Lease. In the event of a default by Tenant under the terms of the Lease Term that results in early termination of the Lease, Landlord shall commence be entitled to the recovery of the Basic Monthly Rental Installment that was abated under the provisions of this Section. (C) In addition to the Basic Annual Rent stipulated herein, Tenant covenants and agrees to pay Landlord without offset or deduction as additional Rent, hereinafter "Additional Rent", all other sums and charges which are to be paid by Tenant pursuant to the terms of this Lease including, without limitation, all charges for utilities incurred by Tenant in the Premises. Except as otherwise provided in this Lease, Additional Rent shall be due and payable on a day other than the first day of a month, the month following the date on which Tenant shall pay on the is given written notice that Additional Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rentis due. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Rent means Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement AgreementRent.

Basic Annual Rent. Commencing on the earlier of (i) sixty (60) days after the Commencement Date (which 60-day period is hereinafter referred to as the “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “First Expansion Premises Rent Commencement Date”), Tenant shall agrees to pay to Landlord during as basic annual rent for the Lease Term First Expansion Premises at such place as Landlord may designate, without prior demand therefore and without any deduction or set off whatsoever, except as expressly permitted herein, the sum of twenty and 13/100 dollars ($20.13) per rentable square foot per year for the First Expansion Premises. Commencing on the Second Expansion Premises Rent Commencement Date, in addition to Basic Annual Rent payable in connection with the First Expansion Premises, Tenant agrees to pay to Landlord as basic annual rent for the Second Expansion Premises at such place as Landlord may designate, without prior demand therefore and without any deduction or set off whatsoever, except as expressly permitted herein, the basic annual rent (as determined on a per rentable square foot basis) as Tenant is then paying Landlord with respect to the First Expansion Premises. The amounts payable by Tenant hereunder are referred to herein as “Basic Annual Rent.” The Basic Annual Rent shall be due and payable in twelve (12) equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, to be paid in advance on or before the first day of each and every calendar month in each lease year during the Lease Term; providedterm of the Lease. Commencing on the first anniversary of the Commencement Date and on each anniversary of the Commencement Date thereafter, howeverBasic Annual Rent shall escalate using a two and one-half of one percent (2.5%) annually compounded rate (the “Escalation Rate”). In the event the First Expansion Premises Rent Commencement Date or the Second Expansion Premises Rent Commencement Date, that if the Lease Term shall commence as applicable, occurs on a day other than the first day of a calendar month, Tenant shall pay on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage rent shall be equal to paid on such date for 6 the percentage of the Building occupied by Tenant during such period. In any event, initial fractional calendar month prorated on a per‑diem basis (based upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(da thirty (30) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementday month).

Basic Annual Rent. Commencing (a) Tenant agrees to pay during the Partial Lease Month and each Lease Year (defined below) of the term of this Lease as Basic Annual Rent ("Basic Annual Rent") for the Premises the sums shown for such periods in Item 5 of the Basic Lease Provisions. For purposes of this Lease, a "Lease Year" shall be each twelve (12) calendar month period commencing on the earlier of (i) sixty (60) days after the Commencement Date (which 60-or anniversary thereof) if the Commencement Date occurs on the first (1st) day period is hereinafter referred to as the “Fit-Up Period”) of a month, or otherwise (ii) the date Tenant commences operating its business first (1st) day of the calendar month following the Commencement Date (or anniversary thereof) if the Commencement Date occurs other than on the first (1st) day of a month. (b) Except as expressly provided to the contrary in Subparagraph 20(a) below, Basic Annual Rent shall be payable in equal consecutive monthly installments, in advance, without deduction or offset, commencing on the Building Commencement Date and continuing on the first (such earlier date being herein the “Rent Commencement Date”), Tenant shall pay to Landlord during the Lease Term “1st) day of each calendar month thereafter. The first (1st) full monthly installment of Basic Annual Rent” , described in Item 6 of the Basic Lease Provisions, shall be payable in equal monthly installments as set forth below without any deductions, recoupments, or set-offs, and without demand, in advance on upon Tenant's execution of this Lease. If the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if the Lease Term shall commence on Commencement Date is a day other than the first (1st) day of a calendar month, Tenant then the Rent (defined below) for the Partial Lease Month (the "Partial Lease Month Rent) shall pay be calculated on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, per diem basis shown therefor in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage Item 5 of the Basic Annual Lease Provisions for the number of days of such month from and including the Commencement Date. The Partial Lease Month Rent and Additional Rent otherwise shall be payable by Tenant during prior to the date that Tenant takes possession or commences use of the Premises for any business purpose (including moving in). Basic Annual Rent, all forms of additional rent payable hereunder by Tenant and all other amounts, fees, payments or changes payable hereunder by Tenant shall (i) each constitute rent payable hereunder (and shall sometimes collectively be referred to herein as "Rent"), (ii) be payable to Landlord when due without any prior demand therefor in lawful money of the United States and. except as may be expressly provided to the contrary herein, without any offset or deduction whatsoever, and (iii) be payable to Landlord at the address of Landlord described in Item 14 of the Basic Lease Provisions or to such period, which percentage other person or to such other place as Landlord may from time to time designate in writing to Landlord. (c) The parties agree that for all purposes hereunder the Premises shall be equal stipulated to contain the number of square feet of Rentable Area (defined in Exhibit "A-4") described in Item 3 of the Basic Lease Provisions. Prior to the percentage Commencement Date, Landlord's Space Planner shall verify the exact number of square feet of Rentable Area in the Premises, utilizing the BOMA Standard as defined in Exhibit "A-4" attached to this Lease. In the event there is any variation from the number of square feet specified in Item 3 of the Building occupied by Tenant during such period. In any eventBasic Lease Provisions, upon the expiration of the Fit-Up Period, Landlord and Tenant shall be obligated execute an amendment to commence payment this Lease for the purpose of Basic Annual Rent and Additional Rent in their full amounts. Subject making appropriate adjustments to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of Rent, the original term Security Deposit, Tenant's Proportionate Share (defined below) and such other provisions hereof as shall be determined by multiplying appropriate under the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementcircumstances.

Basic Annual Rent. Commencing on For purposes of this Lease, the earlier "Prevailing Market Rent" shall mean the rental rate prevailing in the Del Mar Heights office market as of the date which is six (i6) sixty months prior to the expiration of the Lease Term, for renewals of space of equivalent quality, size, utility and location, and in buildings with comparable construction and amenities, with the length of the Extension Term, rent concessions then available in the Del Mar Heights office market for renewal tenants, and the credit standing of the Tenant to be taken into account. In no event however shall the Prevailing Market Rent for each Lease Year of the Extension Term be less than the Basic Annual Rent payable by Tenant for the last twelve (6012) months of the initial Lease Term. If Tenant has timely exercised the option, Landlord shall notify Tenant in writing of the proposed new, Basic Annual Rent determined by Landlord for the Extension Term at least ninety (90) days prior to the Commencement Date of the Extension Term. Unless Tenant objects to the amount determined by Landlord within fifteen (15) days after receipt of such notice, the amount stated in such notice shall be the new Basic Annual Rent. If Tenant objects to Landlord's proposal, then the new Basic Annual Rent shall be determined by an MAI Appraiser chosen by Landlord and approved by Tenant. If Tenant does not disapprove of Landlord's choice of an appraiser by delivery of written notice of disapproval naming a Tenant's appraiser within five (5) days after written notice of such choice by Landlord, then Landlord's appraiser shall be deemed to be approved by Tenant. If Tenant does disapprove of Landlord's choice of an appraiser within the said five (5) days, then Tenant's notice of disapproval shall name an MAI Appraiser designated by Tenant. Within ten (10) days after the Commencement Date date of Tenant's notice of disapproval, Landlord's appraiser and Tenant's appraiser together shall select a neutral third MAI Appraiser. If they are unable to agree on a third MAI Appraiser within the said ten (which 60-day period 10) days, then upon the application of either party, the third MAI Appraiser shall be designated by the Presiding Judge of the Superior Court the County where the property is hereinafter referred located. Landlord's appraiser and Tenant's appraiser each shall determine a Prevailing Market Rent, to as be submitted in writing to Landlord, Tenant, and the “Fit-Up Period”third MAI Appraiser within thirty (30) or (ii) days after the date of Tenant's notice of disapproval. Within fifteen (15) days after receipt of those two appraisals, the third MAI Appraiser shall select one or the other of those two appraisals, and the one so selected shall be and become the Prevailing Market Rent effective as of the commencement date of the Extension Term. The cost of the third MAI Appraiser shall be split equally by Landlord and Tenant, and Landlord and Tenant commences operating its business in shall each be responsible for the Building fees and costs of the appraiser which it appoints. If the Basic Annual Rent shall not have been determined by the commencement date of the Extension Term, then until it is determined, Tenant shall pay Basic Monthly Rent when due during the Extension Term determined using the Basic Annual Rent payable for the twelve (such earlier date being herein 12) month period immediately preceding commencement of the “Extension Term, and when the actual adjusted Basic Annual Rent Commencement Date”)is determined, Tenant shall pay to Landlord during any additional rent due for the Lease Term “Basic Annual Rent” payable months which have elapsed in equal monthly installments as set forth below without any deductions, recoupmentsthe Extension Term, or set-offs, and without demand, in advance on the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if the Lease Term Landlord shall commence on a day other than the first day of a month, Tenant shall pay on the Rent Commencement Date credit any excess payment for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal elapsed months to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of next Basic Annual Monthly Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent shall be confirmed in the Lease Commencement Agreementbecoming due.