Common use of Expansion Clause in Contracts

Expansion. (a) In order to exercise this option, Tenant must so notify Landlord, in writing, on or before the last day of the ninth (9th) full month of the Term, time being of the essence. (b) Landlord shall deliver vacant possession of the Expansion Space to Tenant upon receipt of Tenant's exercise notice, and Tenant shall accept the Expansion Space in a strictly "as is" condition, except that Landlord shall be responsible for removing or demolishing the built-in equipment (but not any permanent improvements such as walls, floors and ceilings) that make up the cafeteria in the Expansion Space. (c) Tenant shall be responsible for all build-out and/or interior finish work that it shall require in the Expansion Space, which work (the "Expansion Work") shall be subject to the provisions of Article 15 hereof. (d) Landlord shall provide Tenant with an allowance of up to Thirty- Five Thousand and 00/100 Dollars ($35,000.00) toward the cost of the Expansion Work, which allowance shall be paid by Landlord to Tenant within thirty (30) days after the following has occurred: (i) Tenant has provided Landlord with a certificate of occupancy for the Expansion Space, and a certificate from Landlord's architect that the Expansion Work has been substantially completed in accordance with the plans and specifications that have been approved by Landlord; and (ii) Tenant has provided Landlord with a detailed invoice of the costs incurred. (e) The Expansion Space shall become part of the Leased Premises, and all of the terms and conditions of this Lease shall apply thereto, as of a date (the "Expansion Date") that is the earlier of (i) the date Tenant first commences business operations in the Expansion Space, or (ii) the first day of the thirteenth (13th) full month of the Term. (f) As of the Expansion Date: (i) Base Rent shall be increased by an amount equal to One Hundred Seventy-Six Thousand Two Hundred Fifty and 00/100 Dollars ($176,250.00) per year (which is based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for the Expansion Space for the period from the Expansion Date to the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated for any partial month. (ii) Tenant's Building Percentage shall be increased to reflect the number of Rentable Square Feet in the Expansion Space. (iii) Tenant shall be entitled to park an additional forty (40) cars in the Building Lot and an additional five (5) cars in the Adjacent Lot. (g) All of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time commencing on the date Landlord delivers vacant possession of the Expansion Space to Tenant and ending on the Expansion Date.

Expansion. Subject to the availability of permanent financing, during the first five years of the initial lease term and provided there are at least seven (7) years remaining in the Term of this Lease, including the time of exercise of any extension option, Tenant may one time only require Landlord to construct an addition to the Leased Premises of not less than 10,000 square feet nor more than 20,000 square feet and increase the parking by 1 space for every 200 square feet (or fraction thereof) the addition to be constructed. Tenant shall exercise the option in writing and Landlord shall cause the expansion to be completed within 270 days after such notice. The expansion shall be of substantially the same design and construction as the Leased Premises. Notwithstanding the provisions of paragraph 3 hereof granting Tenant three options to extend the term for five years each, if Tenant exercises this option to expand the Leased Premises then Tenant may either (a) In order to exercise this option, Tenant must so notify Landlord, in writing, on one or before the last day more of the ninth (9th) full month of the Term, time being of the essence. five year options or (b) Landlord shall deliver vacant possession extend the term of the Expansion Space lease for the number of years necessary to Tenant upon receipt increase the remaining term of Tenant's the lease to seven years from the date of exercise notice, and Tenant shall accept the Expansion Space periods of the renewing options in a strictly "as is" condition, except that Landlord paragraph 3 shall be responsible adjusted so that the total option periods including those exercised previously and by this provision total 15 years. For purposes hereof, permanent financing shall be deemed available if (a) such financing shall be non-recourse and shall otherwise be on commercially reasonable terms and (b) for removing or demolishing purposes of the built-in equipment (but not any permanent improvements such as wallsfinancing, floors and ceilings) that make up the cafeteria in the Expansion Space. (c) Tenant shall be responsible for all build-out and/or interior finish work that it shall require in the Expansion Spacecreditworthy. The annual Base Rent shall, which work (the "Expansion Work") shall be subject to the provisions of Article 15 hereof. (d) Landlord shall provide Tenant with an allowance of up to Thirty- Five Thousand and 00/100 Dollars ($35,000.00) toward the cost upon completion of the Expansion Workexpansion space, which allowance shall be paid by Landlord to Tenant within thirty (30) days after the following has occurred: (i) Tenant has provided Landlord with a certificate of occupancy for the Expansion Space, and a certificate from Landlord's architect that the Expansion Work has been substantially completed in accordance with the plans and specifications that have been approved by Landlord; and (ii) Tenant has provided Landlord with a detailed invoice of the costs incurred. (e) The Expansion Space shall become part of the Leased Premises, and all of the terms and conditions of this Lease shall apply thereto, as of a date (the "Expansion Date") that is the earlier of (i) the date Tenant first commences business operations in the Expansion Space, or (ii) the first day of the thirteenth (13th) full month of the Term. (f) As of the Expansion Date: (i) Base Rent shall be increased by an amount equal to One Hundred Seventy-Six Thousand Two Hundred Fifty 12.5% of the cost of construction of the expansion space and 00/100 Dollars ($176,250.00) per year (which the additional parking. Landlord may select a Contractor to Construct the expansion space, including all Tenant Improvements, and shall notify Tenant of the cost of such construction. If Tenant notifies Landlord that, in Tenant’s opinion, the cost is too high, then Tenant may obtain bids from other contractors reasonably acceptable to Landlord and Landlord shall either engage the contractor with the lowest cost or may utilize any contractor it selects but the rent increase shall be based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for the Expansion Space for the period from the Expansion Date to the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated for any partial monthlowest cost estimate. (ii) Tenant's Building Percentage shall be increased to reflect the number of Rentable Square Feet in the Expansion Space. (iii) Tenant shall be entitled to park an additional forty (40) cars in the Building Lot and an additional five (5) cars in the Adjacent Lot. (g) All of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time commencing on the date Landlord delivers vacant possession of the Expansion Space to Tenant and ending on the Expansion Date.

Expansion. (a) In order If Lessee requires more industrial space in addition to exercise this option, Tenant must so notify Landlord, in writing, on Module B or before the last day of the ninth (9th) full month of the Term, time being of the essence. (b) Landlord shall deliver vacant possession of the Expansion Space to Tenant upon receipt of Tenant's exercise notice, and Tenant shall accept the Expansion Space in a strictly "as is" condition, except that Landlord shall be responsible for removing or demolishing the built-in equipment (but not any permanent improvements such as walls, floors and ceilings) that make up the cafeteria in the Expansion Space. (c) Tenant shall be responsible for all build-out and/or interior finish work that it shall require in event Lessee does not exercise its option to lease Module B, Lessor agrees to use its best efforts to provide the Expansion Space, which work additional space adjacent to the Leased Premises as depicted on Exhibit H attached hereto and incorporated herein (the "Expansion Work") shall “Adjacent Space”). If the Adjacent Space cannot be subject to the provisions of Article 15 hereof. (d) Landlord delivered, Lessor shall provide Tenant with an allowance of up another building (owned by Lessor) to Thirty- Five Thousand and 00/100 Dollars ($35,000.00) toward provide the cost of the Expansion Worktotal industrial space required by Lessee. If Lessee agrees to move into another building owned by Lessor, which allowance shall be paid by Landlord Lessor agrees to Tenant within thirty (30) days after the following has occurred: (i) Tenant has provided Landlord with a certificate of occupancy reimburse Lessee for the Expansion Space, and a certificate from Landlord's architect that the Expansion Work has been substantially completed all moving expenses incurred by Lessee in accordance connection with the plans move and specifications that have been approved by Landlord; and (ii) Tenant has provided Landlord with a detailed invoice pay for fifty percent (50%) of the costs incurred. tenant improvements to be constructed in the new space. If Lessee decides to exercise its option to expand into the Adjacent Space or if parties agree on a new building to which Lessee can move its operations, the parties hereto shall either (ei) The Expansion execute an amendment to this Lease which redefines the Leased Premises to include the Adjacent Space shall become part or substitute the new building as the Leased Premises and recalculates rent by multiplying the rental rate set forth in Section 5.1 by the new square footage of the Leased Premises, and all of the terms and conditions of this Lease shall apply thereto, as of a date (the "Expansion Date") that is the earlier of (i) the date Tenant first commences business operations in the Expansion Space, Premises or (ii) enter into a new lease agreement under similar terms and conditions as those set forth herein. Notwithstanding the first day foregoing, any new lease or amendment to this Lease entered into between the parties pursuant to this Article 23 shall include language which sets forth a term or extends the Term for a period of the thirteenth (13th) full month of the Term. (f) As of the Expansion Date: (i) Base Rent shall be increased by an amount equal to One Hundred Seventy-Six Thousand Two Hundred Fifty and 00/100 Dollars ($176,250.00) per year (which is based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for the Expansion Space for the period from the Expansion Date to the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated for any partial month. (ii) Tenant's Building Percentage shall be increased to reflect the number of Rentable Square Feet in the Expansion Space. (iii) Tenant shall be entitled to park an additional forty (40) cars in the Building Lot and an additional least five (5) cars in the Adjacent Lot. (g) All of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time years commencing on the execution date Landlord delivers vacant possession of the Expansion Space amendment or the new lease or such other date as set forth therein. It is agreed by the parties that in the event the parties enter into a new lease pursuant to Tenant and ending on the Expansion Dateterms of this Article 23, Lessee shall cause a guaranty, similar to the Guaranty granted to Lessor pursuant to Exhibit F hereto, be granted to Lessor.

Expansion. (a) In order 32.1 Although Tenant does not now wish to exercise this optionhave constructed a larger facility, Tenant must so notify Landlordmay in the future desire to expand the Building. Landlord is willing to permit the construction of additional space (the "Expansion Space") to the Building and will agree to construct, or to cause the construction of, the Expansion Space requested by Tenant, all in writingaccordance with and subject to the following terms and conditions of this paragraph 32. 32.2 If Tenant decides it would like to have the Building expanded at any time prior to expiration of the Lease Term, on or Tenant shall deliver a written notice to Landlord not later than one (1) year before the last day Lease Term expires specifying the number of additional square feet requested, the ninth (9th) full month of the Term, time being of the essence. (b) Landlord shall deliver vacant possession general configuration of the Expansion Space Space, the tenant improvements requested by Tenant to Tenant upon receipt of Tenant's exercise notice, and Tenant shall accept be installed by Landlord in the Expansion Space in a strictly "as is" condition, except that Landlord shall be responsible and the target date for removing or demolishing the built-in equipment (but not any permanent improvements such as walls, floors and ceilings) that make up the cafeteria in completion of the Expansion Space. 32.3 If Tenant's notice to Landlord is delivered within the first two (c2) years of the Lease Term and if ▇▇▇▇ Companies US, Inc. is still the Landlord, then within sixty (60) days following receipt of Tenant's written request for such expansion, Landlord will deliver to Tenant shall be responsible a written response which will either (A) set forth (i) Landlord's good faith estimate of the total cost to construct the Expansion Space in adherence to the same construction standards set forth in this Lease for all build-out and/or interior finish work that it shall require the Building plus a 6% fee to Landlord; (ii) Landlord's good faith estimate of the increase in monthly base rent expected to result from the Expansion Space, which work calculated using the applicable rental constant under paragraph 3; and (iii) the "expected time to complete the Expansion Work"Space, including the projected time to prepare and agree upon plans and specifications and the time to obtain necessary financing, permits, consents and approvals; or (B) shall be subject advise Tenant that Landlord elects not to construct the provisions of Article 15 hereof. (d) Landlord shall provide Tenant with an allowance of up to Thirty- Five Thousand and 00/100 Dollars ($35,000.00) toward the cost Expansion Space for any of the Expansion Workreasons set forth in paragraph 32.5 below. If Landlord provides a response under subparagraph (A) above, which allowance shall be paid by then Tenant will notify Landlord to Tenant within thirty (30) days of Tenant's receipt of Landlord's response whether Tenant desires to proceed with the expansion. 32.4 If Tenant's notice to Landlord is delivered after the first two (2) years of the Lease Term or if ▇▇▇▇ Companies US, Inc. is not still the Landlord, then within sixty (60) days following has occurred: receipt of Tenant's written request for such expansion, Landlord will deliver to Tenant a written response which will either (A) set forth (i) Tenant has provided Landlord with Landlord's good faith estimate of the total cost to construct the Expansion Space in adherence to the same construction standards set forth in this Lease for the Building plus a certificate 6% fee to Landlord; (ii) Landlord's good faith estimate of occupancy for the increase in monthly base rent expected to result from the Expansion Space, calculated using the applicable rental constant under paragraph 3; and a certificate from Landlord's architect that (iii) the expected time to complete the Expansion Work has been substantially completed in accordance with Space, including the projected time to prepare and agree upon plans and specifications and the time to obtain necessary financing, permits, consents and approvals; or (B) advise Tenant that have been approved Landlord elects not to construct the Expansion Space for any reason whatsoever, including without limitation, the reasons set forth in paragraph 32.5 below. If Landlord provides a response under subparagraph (A) above, then Tenant will notify Landlord within sixty (60) days of Tenant's receipt of Landlord's response whether Tenant desires Landlord to proceed with the expansion, during which time Tenant, in its sole discretion, may elect to obtain competitive bids. 32.5 Landlord may decline to construct the Expansion Space requested by Landlord; andTenant if: (iia) Tenant has provided Landlord with a detailed invoice is unable to obtain financing on terms and conditions satisfactory to Landlord. (b) The Expansion Space is less than 30,000 square feet. (c) The Expansion Space is not permitted by applicable law, the Ground Lease, the Subground Lease or any recorded covenants, conditions and restrictions (including without limitation, the Declaration). (d) Tenant's financial condition has, in the sole opinion of Landlord, adversely changed since the date of the costs incurredLease so as to not be acceptable to Landlord. (e) The Tenant is, or has been during the Lease term, in default under this Lease or any event has occurred which with the giving of notice or passage of time, or both, would constitute an event of default on the part of Tenant. 32.6 If Landlord is to proceed with construction of the Expansion Space shall become part under either paragraph 32.3 or 32.4 above, then the parties will enter into a written amendment to the Lease setting forth the terms and conditions applicable to the Expansion Space, including without limitation the following: (a) If the Expansion Space is "ready for occupancy" (as defined in paragraph 2 above) after the first five (5) years of the Leased PremisesLease Term, then the initial Lease Term for the Property (including the Expansion Space) will be extended so that it expires ten (10) years from the date the Expansion Space is "ready for occupancy". This extension is independent of and in addition to the Renewal Options set forth in paragraph 31. (b) Base rent for the Expansion Space will be calculated using the applicable Rental Constant as set forth in paragraph 3 (but with the applicable Subground Lease Annual Payment included only once in calculating base rent in the aggregate for both the original Building and the Expansion Space). If the initial Lease Term is extended as provided above, then (i) the Rental Constant for calculating annual base rent for years 16 through 20, or portion thereof, and, if applicable, for years 21 through 25, or portion thereof, shall be computed on the basis of a 2% yearly increase compounded annually in base rent over years 11 through 15 for calculating base rent for years 16 through 20 and then, if applicable, over years 16 through 20 for calculating base rent for years 21 through 25, and (ii) the Subground Lease Annual Payment shall be equal to the applicable annual rent payable under the Subground Lease for the corresponding year of the Lease Term. The amendment will further state that, except as specifically provided to the contrary in this paragraph 32, all of the terms and conditions of this the Lease shall apply theretoto the Expansion Space. If the parties cannot agree upon the amendment in sufficient time for Landlord to commence and complete the Expansion Space by the target completion date, as then Landlord shall not be obligated thereafter to proceed with construction of a date the Expansion Space. 32.7 If Landlord elects under subpart (the "Expansion Date"B) that is the earlier of (i) the date Tenant first commences business operations in either paragraphs 32.3 or 32.4 not to construct or have constructed the Expansion Space, or if Tenant is not satisfied with Landlord's proposal for the Expansion Space, Tenant shall have the right to construct the Expansion Space at its own expense in accordance with the terms of this paragraph 32. If Tenant elects to construct the Expansion Space, all construction must be performed in accordance with plans mutually acceptable to Landlord and Tenant and complying with all applicable laws, rules and regulations, the Ground Lease, the Subground Lease and recorded covenants, conditions and restrictions (ii) including without limitation, the first day Declaration). Tenant will be responsible for obtaining at Tenant's expense all necessary permits, consents and approvals, and Landlord shall cooperate with and assist Tenant as necessary to enable Tenant to complete the desired construction. Tenant agrees to carry insurance in commercially reasonable coverages and amounts with respect to the construction satisfactory to Landlord. Tenant shall also obtain payment and performance bonds to insure for the benefit of Landlord the thirteenth (13th) full month of completion and payment for the Term. (f) As construction work and shall, prior to beginning construction, record a bond satisfying the statutory requirements for keeping the Premises lien free with respect to Tenant's construction of the Expansion Date: (i) Base Rent shall Space. If the construction is undertaken and paid for by Tenant, Tenant will not be increased by an amount equal required to One Hundred Seventy-Six Thousand Two Hundred Fifty and 00/100 Dollars ($176,250.00) per year (which is based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in pay base monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for rent with respect to the Expansion Space for any period during the period from Lease Term as extended, including during any Renewal Terms, but shall pay Operating Costs. Under no circumstances shall Landlord be required to obligate itself or encumber the Expansion Date Premises for financing to pay the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated costs for any partial month. (ii) Tenant's Building Percentage shall be increased to reflect the number construction of Rentable Square Feet in the Expansion Space. (iii) Tenant 32.8 The duties and obligations of Landlord under this paragraph 32 shall not be entitled to park an additional forty (40) cars in the Building Lot binding upon and an additional five (5) cars in the Adjacent Lot. (g) All need not be performed by any mortgagee, trust deed beneficiary or other holder of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time commencing a financing lien on the date Landlord delivers vacant possession of Premises or their successors and assigns; provided, however, the foregoing shall not impair or otherwise prejudice Tenant's right under paragraph 32.7 to construct the Expansion Space to Tenant and ending on the Expansion DateSpace.

Expansion. Both parties to this lease agree that it may be in their mutual best interests to expand the leased facility at a future date. The Landlord and Tenant believe that by modifying certain portions of the property, it may be possible to construct an addition with 20,000 square feet of space contiguous to the existing facility. If the parties agree to expand the facility they will work together to: (a) In order design any such addition to exercise this option, Tenant must so notify Landlord, in writing, on or before meet the last day operational needs of the ninth (9th) full month tenant by providing for the appropriate type of space and the Term, appropriate infrastructure at the time being of the essence. addition would be constructed; (b) negotiate appropriate lease rates for any such addition to meet the financial needs of the Landlord and Tenant; (c) provide appropriate returns for the Landlord’s investment; and, (d) maintain the future marketability of the property. Neither party shall be obligated to the expansion if in their sole discretion the addition is not in the mutual best interests of both the Landlord and the Tenant. The lease agreement for any expansion to this facility shall be handled as an amendment to this Lease Agreement. Should the Landlord and Tenant not agree to an expansion of the facility by at least 20,000 square feet by the end of the fifth year of the lease term, then Landlord shall deliver vacant possession have a “put” option to require Tenant to purchase the leased facility. The aforesaid “put” option shall commence at the end of the Expansion Space to Tenant upon receipt of Tenant's exercise notice60th month hereof, and Tenant shall accept the Expansion Space in a strictly "as is" conditionprovided, except however, that Landlord shall have requested that Tenant agree to an expansion of the facility by at least 20,000 square feet, and shall continue in effect through the end of the 7th year (the 84th month following the effective date hereof) of the lease term. The purchase price shall be responsible the greater of the appraisal price (determined in exactly the same manner as described with respect to Lessee’s option to purchase set forth in paragraph l.3.i) or the sum of the Landlord’s original purchase price plus 15% which the parties agree is the sum of $3,350,000. If during the time period prior to the exercise of this put option Tenant has paid for removing or demolishing the built-in equipment (but not any permanent improvements such as wallsinstallation of water and sewer utilities pursuant to paragraphs hereof, floors and ceilings) that make up the cafeteria in the Expansion Space. (c) then Tenant shall be responsible for all build-out and/or interior finish work that it shall require in able to deduct such payments from the Expansion Space, which work (the "Expansion Work") shall be subject to the provisions of Article 15 hereof. (d) Landlord shall provide Tenant with an allowance of up to Thirty- Five Thousand purchase price as established hereby. The parties have executed and 00/100 Dollars ($35,000.00) toward the cost delivered this Lease as of the Expansion Workdate on the top of page one. Landlord: COUGAR DEVELOPMENT, which allowance shall be paid by Landlord to Tenant within thirty (30) days after the following has occurred: (i) Tenant has provided Landlord with a certificate of occupancy LLC Tenant: WAMAR PRODUCTS, INC. By: /s/ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇▇▇▇ ▇. ▇▇▇▇▇▇ for the Expansion SpaceDevelopers, and a certificate from Landlord's architect that the Expansion Work has been substantially completed in accordance with the plans and specifications that have been approved by Landlord; and (ii) Tenant has provided Landlord with a detailed invoice of the costs incurred. (e) The Expansion Space shall become Inc., Member By: Its: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ CFO Guarantor: CLARION TECHNOLOGIES, INC. By: Its: /s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇ CFO That part of the Leased PremisesEast 1/2 of the Southwest 1/4 of Section 6, Town 5 North, Range 10 West, Caledonia Township, Kent County, Michigan described as: Commencing at the South 1/4 corner of said Section 6; thence North 90 degrees 00 minutes West 683.00 feet along the South line of said Section 6 to the Point of Beginning; thence North 90 degrees 00 minutes West 355.00 feet; thence North 00 degrees 00 minutes West 222.00 feet; thence South 90 degrees 00 minutes East 42.00 feet; thence North 00 degrees 00 minutes West 602.27 feet; thence South 90 degrees 00 minutes East 313.00 feet; thence South 00 degrees 00 minutes East 824.27 feet to the Point of Beginning. Together with and subject to a 20.00 foot wide drainage easement, the centerline of which is described as: Commencing at the South 1/4 corner of said Section 6; thence North 90 degrees 00 minutes West 1016.0 feet along the South line of said Section 6; thence North 00 degrees 00 minutes West 217.0 feet to the Point of Beginning for said centerline; thence North 59 degrees 22 minutes West 160.00 feet; thence North 88 degrees 39 minutes West 160 feet, more or less, to a point in the centerline of an existing drainage ditch, said point being 302.4 feet, more or less, North of the South line of said Section 6 and the point of ending for said centerline. That part of the ▇▇▇▇▇▇▇▇▇ ▇/▇, ▇▇▇▇▇▇▇ ▇, ▇▇▇▇ ▇ ▇▇▇▇▇, ▇▇▇▇▇ 10 West, Caledonia Township, Kent County, Michigan described as: Beginning at a point on the South line of said Southwest 1/4 which is North 89 degrees 56 minutes 52 seconds West 669.92 feet from the South 1/4 corner of Section 6; thence North 89 degrees 56 minutes 52 seconds West 13.08 feet along said South line; thence North 00 degrees 03 minutes 08 seconds East 824.27 feet; thence South 89 degrees 56 minutes 52 seconds East 2.00 feet; thence South 00 degrees 03 minutes 08 seconds West 506.98 feet along the Westerly right of way line of Kon-Krete Drive (86.00 feet wide); thence Southerly 211.69 feet along said Westerly line on a 4043.00 foot radius curve to the left, the chord of which bears South 01 degree 26 minutes 52 seconds East 211.67 feet; thence South 02 degrees 56 minutes 52 seconds East 105.84 feet along said Westerly line to the place of beginning. PARCELS A AND B combined are described as: That part of the East 1/2 of the Southwest 1/4 of Section 6, Town 5 North, Range 10 West, Caledonia Township, Kent County, Michigan, described as: Commencing at the South 1/4 corner of said Section 6; thence North 90 degrees 00 minutes West 669.92 feet along the South line of said Section 6 to the Point of Beginning; thence North 90 degrees 00 minutes West 368.08 feet; thence North 00 degrees 00 minutes West 222.00 feet; thence South 90 degrees 00 minutes East 42.00 feet; thence North 00 degrees 00 minutes West 602.27 feet; thence South 90 degrees 00 minutes East 315.00 feet; thence South 00 degrees 00 minutes East 506.98 feet along the Westerly right of way line of Kon-Krete Drive (86.0 feet wide); thence Southerly 211.69 feet along said Westerly line on a 4043.00 foot radius curve to the left, the chord of which bears South 01 degree 30 minutes East 211.67 feet; thence South 03 degrees 00 minutes East 105.84 feet along said Westerly line to the Point of Beginning. Together with and subject to a 20.00 foot wide drainage easement, the centerline of which is described as: Commencing at the South 1/4 corner of said Section 6; thence North 90 degrees 00 minutes West 1016.00 feet along the South line of said Section 6; thence North 00 degrees 00 minutes West 217.0 feet to the Point of Beginning for said centerline; thence North 59 degrees 22 minutes West 160.00 feet; thence North 88 degrees 39 minutes West 160 feet, more or less, to a point in the centerline of an existing drainage ditch, said point being 302.4 feet, more or less, North of the South line of said Section 6, and all the point of the terms and conditions of this Lease shall apply thereto, as of a date (the "Expansion Date") that is the earlier of (i) the date Tenant first commences business operations in the Expansion Space, or (ii) the first day of the thirteenth (13th) full month of the Termending for said centerline. (f) As of the Expansion Date: (i) Base Rent shall be increased by an amount equal to One Hundred Seventy-Six Thousand Two Hundred Fifty and 00/100 Dollars ($176,250.00) per year (which is based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for the Expansion Space for the period from the Expansion Date to the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated for any partial month. (ii) Tenant's Building Percentage shall be increased to reflect the number of Rentable Square Feet in the Expansion Space. (iii) Tenant shall be entitled to park an additional forty (40) cars in the Building Lot and an additional five (5) cars in the Adjacent Lot. (g) All of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time commencing on the date Landlord delivers vacant possession of the Expansion Space to Tenant and ending on the Expansion Date.

Expansion. (a) In order to exercise 46.1 Provided that this optionLease is in full force and effect and Tenant is not in default hereunder, Tenant must so notify Landlordshall have the right, in writing, by written notice to Landlord on or before the last day of the ninth (9th) full month of the TermOctober 20, 2000, time being of the essence, to lease all or a portion of the third floor of the Building that is not presently covered by this Lease or leased to ▇▇▇▇ ▇. ▇▇▇▇▇ and Company, Inc. (such balance of the third floor being shown on Schedule B attached hereto as "Expansion Area"), on the following terms and conditions: (a) Tenant's exercise notice must specify the portion of the Expansion Area that Tenant wishes to lease. If Tenant wishes to lease less than all of the Expansion Area, then the portion thereof that Tenant does not lease must be at least 10,000 square feet. If Tenant elects to lease less than all of the Expansion Area, then Landlord shall designate the precise location and configuration of the portion of the Expansion Area that Tenant will lease, so that the portion of the Expansion Area that Tenant does not lease will be a marketable space, taking into consideration, among other things, the size, configuration and access thereto. (b) Landlord The portion of the Expansion Area that Tenant elects to lease under this Article 46 shall deliver vacant possession be hereinafter referred to as the "Expansion Space". The Expansion Space shall be part of the Demised Premises for all purposes hereunder as of Tenant's election to lease the same and Landlord's designation of the location and configuration of the same, and, as of such date, the Rentable Area of the Demised Premises shall be increased to include the Rentable Area of the Expansion Space to Tenant upon receipt of Tenant's exercise notice, and Landlord and Tenant shall accept the Expansion Space in a strictly "as is" condition, except that Landlord shall be responsible for removing or demolishing the built-in equipment (but not any permanent improvements such as walls, floors and ceilings) that make up the cafeteria in the Expansion Space. (c) Tenant shall be responsible for all build-out and/or interior finish work that it shall require in the Expansion Space, which work (the "Expansion Work") shall be subject promptly execute an amendment to the provisions of Article 15 hereof. (d) Landlord shall provide Tenant with an allowance of up to Thirty- Five Thousand and 00/100 Dollars ($35,000.00) toward the cost of the Expansion Work, which allowance shall be paid by Landlord to Tenant within thirty (30) days after the following has occurred: (i) Tenant has provided Landlord with a certificate of occupancy for the Expansion Space, and a certificate from Landlord's architect that the Expansion Work has been substantially completed in accordance with the plans and specifications that have been approved by Landlord; and (ii) Tenant has provided Landlord with a detailed invoice of the costs incurred. (e) The Expansion Space shall become part of the Leased Premises, and all of the terms and conditions of this Lease shall apply thereto, as of a date (to reflect the "Expansion Date") that is the earlier of (i) the date Tenant first commences business operations in the Expansion Space, or (ii) the first day of the thirteenth (13th) full month of the Term. (f) As of the Expansion Date: (i) Base Rent shall be increased by an amount equal to One Hundred Seventy-Six Thousand Two Hundred Fifty and 00/100 Dollars ($176,250.00) per year (which is based on $11.75 per Rentable Square Foot and shall be adjusted if the measurement inclusion of the Expansion Space by Landlord's architect discloses a different number of Rentable Square Feet in into the Expansion Space), payable in monthly installments of Fourteen Thousand Six Hundred Eighty-Seven and 50/100 Dollars. ($14,687.50), pro-rated for any partial month, provided that if the Expiration Date is before the first day of the thirteenth (13th) full month of the Term, then Base Rent for the Expansion Space for the period from the Expansion Date to the first day of the thirteenth (13th) full month of the term shall be payable at the rate of One Hundred Sixteen Thousand Two Hundred Fifty and 00/100 Dollars ($116,250.00) per year (which is based on $7.75 per Rentable Square Foot and shall be adjusted if the measurement of the Expansion Space by Landlord's Architect discloses a different number of Rentable Square Feet in the Expansion Space), payable in monthly installments of Nine Thousand Six Hundred Eighty-Seven and 50/100 Dollars ($9,687.50), pro-rated for any partial monthDemised Premises. (ii) Tenant's Building Percentage shall be increased to reflect the number of Rentable Square Feet in the Expansion Space. (iii) Tenant shall be entitled to park an additional forty (40) cars in the Building Lot and an additional five (5) cars in the Adjacent Lot. (g) All of the terms and conditions of this Lease, except for Articles 4 and 5, shall apply to the period of time commencing on the date Landlord delivers vacant possession of the Expansion Space to Tenant and ending on the Expansion Date.