Common use of OPTION TO LEASE ADDITIONAL SPACE Clause in Contracts

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercised, Tenant shall have the option (the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) $40.00 per leasable square foot of the Additional Space; and (ii) a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space shall be added to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and shall be subject to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Additional Space Option is not deemed to grant Tenant an exclusive right to lease the Additional Space, and subject to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, to lease the Additional Space to another party or parties.

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercised, Tenant shall have the option (the “Additional Space Expansion Option”), exercisable by written notice from Tenant ) to Landlord (lease suite 100 located on the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area first floor of the Building which remain unencumbered by a lease with another third party, and which Tenant desires consisting of approximately 10,734 rentable square feet of space (hereinafter referred to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (as the “Additional Expansion Option Space”), upon ) on all of the terms and conditions applicable to provided in the Leased PremisesLease, except as follows: provided below. If Tenant desires to lease less than all of the Expansion Option Space, Tenant may do so, but only if that portion of the Expansion Option Space not leased by Tenant (athe “Remaining Expansion Option Space”) is, in Landlord’s reasonable judgment, marketable for lease to another party and Tenant pays for all costs reasonably necessary to partition the Remaining Expansion Option Space into a separate and distinct space marketable for lease, including without limitation, the cost of installing demising walls and any other improvements necessary, in Landlord’s reasonable judgment, to partition the Remaining Expansion Option Space into a space marketable for lease. Landlord and Tenant acknowledge that Landlord’s affiliated entity, Basin Street Properties (“Basin Street”) currently occupies the Expansion Option Space. The Expansion Option shall automatically terminate and expire if Basin Street no longer occupies the Expansion Option Space. Neither the Expansion Option nor any other provision of the Lease shall prohibit or prevent Landlord from leasing the Expansion Option Space to any other party prior to Tenant’s delivery of Tenant’s Expansion Option Exercise Notice (defined below) if Basin Street no longer occupies the Expansion Option Space. Tenant shall exercise the Expansion Option, if at all, by written notice (“Tenant’s Expansion Option Exercise Notice”) delivered to Landlord anytime during the Term at least ninety (90) days prior to the commencement of Tenant’s lease of the Expansion Option Space and prior to the date that Basin Street vacates the Expansion Option Space. If Tenant timely exercises the Expansion Option, then (i) Landlord and Tenant shall amend the Lease to include the Expansion Option Space as part of the Premises, (ii) Tenant’s obligation to pay Base Rent for the Additional Expansion Option Space and its percentage share of Operating Expenses and Taxes for the Expansion Option Space shall commence on the date that Landlord delivers possession of the Expansion Option Space to Tenant, which date shall be at no earlier than ninety (90) days after Tenant’s delivery of Tenant’s Expansion Option Exercise Notice, (iii) Landlord shall deliver and Tenant shall accept the same Expansion Option Space in its then current Base Rent rate as applicable existing “as-is” condition without any obligation on the part of Landlord to complete or pay for any improvements of any kind; provided, if Tenant’s lease of the Expansion Option Space (or such portion thereof) commences prior to the Leased Premises on date that is that is two (2) Lease Years and six (6) months from the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below)Date, Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the an amount equal to the product of forty dollars (i$40) $40.00 per leasable rentable square foot of that portion of the Additional Space; and (ii) a fraction, the numerator Expansion Option Space leased by Tenant. The term of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% lease of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Expansion Option Space shall be added conterminous with the Term of the Lease. If Tenant exercises its Expansion Option and Tenant’s lease of the Expansion Option Space commences prior to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date date that is that is two (2) Lease Years and shall be subject to all of the terms and conditions of the lease. six (e6) Notwithstanding the foregoing, months from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and Expansion Option Space shall be the new Term expiration date, if applicable. (g) Further notwithstanding same rate per rentable square foot as the foregoing, Base Rent for the Premises. If Tenant exercises its Expansion Option or Tenant’s Additional lease of the Expansion Option Space commences at any time after the date that is that is two (2) Lease Years and six (6) months from the Commencement Date, the Base Rent for the Expansion Option is not deemed Space shall be the fair market rent, as reasonably determined by Landlord. For the purposes of this Section 2, “fair market rent” means the monthly base rent (i.e., rent other than operating expenses, taxes and insurance premiums) expected to grant Tenant an exclusive right to lease prevail as of the Additional Space, and subject to commencement of Tenant’s Right lease of First Refusalthe Expansion Option Space for the remainder of the Lease Term with respect to leases of comparable space within buildings located in Petaluma, Landlord is free at any timeCalifornia of a quality and with interior improvements, parking, site amenities, building systems, location, identity and from time access all comparable to time, to lease that of the Additional Space to another party or partiesExpansion Option Space.

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to the first anniversary Provided that no Event of Default then exists under this Lease and provided that Tenant has not assigned this Lease nor sublet greater than fifteen percent (15%) of the Commencement Date, provided a Tenant event Rentable Area of default does not exist at the time the option may be exercisedPremises, Tenant shall have the right and option to lease all of Building C in the Project (the “"Additional Space"), a building to be constructed approximately in the location shown on EXHIBIT "B" attached hereto and consisting of approximately 51,300 square feet of Rentable Area, on the terms set forth hereinbelow; provided, however, if Tenant does not notify Landlord in writing on or before October 1, 1997 that Tenant elects to lease the Additional Space, Tenant's right to lease such space shall terminate and expire. The terms for Tenant's lease of the Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable to the Leased Premises, except be as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) Tenant's Credit (as defined in paragraph 10.c of the Work Letter) shall equal $40.00 10.00 per leasable square foot of Rentable Area within the Additional Space; and (ii) a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space shall be added to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and shall be subject to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term Rental for the Additional Space is no less than 60 monthsshall equal $0.62 per square foot of Rentable Area during years one through three, $0.65 per square foot of Rentable Area during years four and five, $0.68 per square foot of Rentable Area during years six through eight, and (ii) for any Additional Space containing 10,000 or more leasable $0.72 per square feet if the Term foot of Rentable Area for the Leased Premises and balance of the term of Tenant's lease of the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from Space. Tenant and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease Lease incorporating such Additional Space and such terms within thirty fifteen (3015) days after Tenant's notification to Landlord. If Tenant fails or refuses to execute such amendment within such 15-day period, Tenant's right to lease the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premisesterminate and expire. Except as provided above, Tenant’s Pro Rata Share 's lease of Operating Coststhe Additional Space shall be upon the same terms and conditions of the Lease (including the Work Letter); provided, however: (i) Tenant shall have the Base Rent for use of 420 parking spaces, in the aggregate, within the Permitted Parking Areas pursuant to its lease of the Building and the Additional Space, and less any spaces eliminated by Tenant's use of any proposed spaces for non-parking purposes; (ii) the new Term expiration date, if applicable. (g) Further notwithstanding term of Tenant's lease of the foregoing, Tenant’s Additional Space Option is not deemed shall commence on a commencement date calculated in accordance with paragraph 1 above, and Initials ___ ___ 18 20 shall end on the last day of the term of this Lease, as set forth in paragraph 1 herein; and (iii) within sixty (60) days after Tenant's notification to grant Tenant an exclusive right Landlord of its election to lease the Additional Space, Landlord and subject Tenant shall mutually approve plans for Base Building Work on the Additional Space and Tenant shall submit Contract Documents for the Additional Space to Landlord, provided that in any event Landlord and Tenant shall mutually approve plans for Base Building Work on the Additional Space and Tenant shall submit Contract Documents for the Additional Space to Landlord on or before the later to occur of October 1, 1997, or Landlord's completion of the building shell for the Additional Space. Landlord shall provide to Tenant plans and specifications for Base Building Work on the Additional Space on or before June 1, 1997. If, after the Commencement Date for the Additional Space, Tenant reasonably requires additional parking spaces above the 420 parking spaces described above, then, within forty-five (45) days after written request from Tenant’s Right of First Refusal, Landlord is free at any timeshall provide Tenant with such required parking spaces up to a maximum of an additional thirty (30) parking spaces (i.e., a total of 450 parking spaces, reduced as provided above) within the Permitted Parking Areas. Landlord agrees to execute and from time to timerecord in the Real Property Records of Travxx Xxxnty, Texas, a memorandum of Tenant's option to lease the Additional Space to another party or partiesunder this paragraph 26, in the form of EXHIBIT "G" attached hereto.

OPTION TO LEASE ADDITIONAL SPACE. At Provided that Tenant is not then in default hereunder beyond any time prior applicable grace period and has not, in one or more transactions pursuant to Section 2.4 above, leased an amount of space in the Adjacent Building that equals the entire rentable area of a full floor of the Adjacent Building, then subject to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercisedconditions set forth below, Tenant shall have the option (to lease additional space within the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, Project consisting of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product leases of (i) 25,000 rentable square feet or (ii) the entire rentable area of a building within the Project as described below (the "Expansion Area"). Unless required to do so sooner by the provisions below, Tenant shall exercise that option by giving written notice to Landlord not later than May 31, 2000 (the "Option Notice"). Within thirty (30) days following receipt of the Option Notice, Landlord shall determine the intended location of the Expansion Area. Such location may, at Landlord's election, either be within the Adjacent Building, if sufficient space is then available, or within another building consisting of between 20,000 and 70,000 rentable square feet to be subsequently developed by Landlord within the Project (the "Additional Building"). The Additional Building shall, if applicable, be constructed utilizing exterior and interior materials and finishes similar to those of the Building. Should Landlord determine that the Expansion Area is to be located in the Additional Building, then Landlord shall diligently pursue all necessary entitlements and penalties for the Additional Building. However, Landlord shall only be obligated to obtain a building permit and commence construction of the Additional Building if (i) Landlord can obtain financing on commercially reasonable terms for the Additional Building, (ii) Tenant's then-current Standard & Poor's credit rating, if any, is not lower then "BBB-", (iii) Landlord is able to achieve not less than the Minimum Return (as defined below) on the Additional Building, and (iv) Landlord is able to secure the necessary entitlements and permits. For purposes of this Section, the "Minimum Return" on the Additional Building shall mean a projected return, as reasonably calculated by Landlord, equal to the then-current ten (10) years treasury bond yield plus 550 basis points on the total cost of the Additional Building. The total cost of the Additional Building shall include all hard and soft costs incurred by Landlord in connection with the development and construction of the Additional Building, the improvements, therein, and all attendant infrastructure and common area improvements, together with an imputed land cost equal to Eighty Dollars ($40.00 80.00) per leasable gross building square foot of the Additional Space; and (ii) Building. Should Landlord pro-forma a fractionyield, the numerator of which is the number of months left in the initial Term from and after on the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space Building that is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord Minimum Return (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space which determination shall be added to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and shall be subject to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) made by Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after following delivery of the Option Notice), Landlord shall have no obligation to construct same unless Tenant agrees in writing to lease all of the rentable area of the Additional Space Commencement DateBuilding at a rental rate sufficient to provide the Minimum Return. In no event, which amendment however, shall the obligation to construct the Additional Building be binding on any successor to the interest of Landlord in the Building following a foreclosure of that interest or the transfer of title by deed in lieu thereof. Should Landlord obtain the necessary entitlements for the Additional Building prior to Tenant's delivery of the Option Notice, then Landlord may so notify Tenant and require that Tenant either deliver the Option Notice within twenty (20) days thereafter or waive its option rights under this Section. Should Tenant fail to deliver the Option Notice to Tenant within that period, then its right to do so thereafter shall permanently lapse and this Section shall become null and void. Landlord agrees, however, that if Tenant does timely deliver the Option Notice as a result of the foregoing demand by Landlord, then Tenant shall not be required to accept delivery of the Expansion Area prior to June 1, 2000. Subject to the Minimum Return requirement set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costsabove, the Base Rent rental rate and other economic terms for the Expansion Area shall be reasonably determined by Landlord in accordance with the criteria described in Section 3.3 below for the calculation of the "Prevailing Rate"; provided that then-current tenant improvement allowances provided by Landlord within the Project shall be utilized in such determination. Landlord's calculation of the Prevailing Rate shall be subject to Tenant's reasonable review and approval; in the event the parties are unable to agree thereon within thirty (30) days, then either party may submit same to arbitration in accordance with Section 14.7. The term of Tenant's lease of the Expansion Area shall be coterminous with the remaining Term of this Lease but in no event shall be less than sixty (60) months. Should fewer than sixty (60) months remain in the Term hereof as of the commencement date of the Expansion Area, then Tenant shall have the right, by written notice to Landlord given within thirty (30) days following that commencement date, to extend the Term of this Lease as to the remainder of the Premises to be coterminous with the Expansion Area. The rental rate for the remainder of the Premises during that extension period shall be at the rate per rentable square foot that is payable from time to time for the Expansion Area during such period. The non-economic terms for Tenant's lease of the Expansion Area shall be as set forth in this Lease. The commencement data of Tenant's lease of the Expansion Area shall be established in accordance with Section 3.1 of this Lease. Except as otherwise provided above, it is understood that Landlord may deliver the Expansion Area to Tenant at any time following Tenant's delivery of the Option Notice. In the event the Expansion Area is to be located in the Additional Building, then subject to the conditions above, Landlord shall deliver the Additional Space, ready for the commencement of the tenant improvement work by Tenant, not later than eighteen (18) months following receipt by Landlord of all necessary entitlements and permits for the new Term expiration datecommencement of construction, if applicable. (g) Further notwithstanding as such outside data shall be extended for the foregoingperiod of delays caused by Tenant and by other matters beyond the reasonable control of Landlord. Landlord shall, Tenant’s Additional Space Option is not deemed to grant upon request by Tenant an exclusive right to lease the Additional Space, and subject to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, keep Tenant advised as to lease the status of the development and construction of the Additional Space Building. Promptly following the determination of the location of the Expansion Area and all of the economic terms of Tenant's lease thereof, Landlord shall prepare an appropriate amendment to another party this Lease memorializing same and Landlord shall execute and return that amendment to Landlord within ten (10) days. Tenant's rights under this Section are personal to Pacific Investment Management Company, and may not be assigned or partiestransferred except in connection with an assignment of this Lease by a Tenant Affiliate meeting the credit standards set forth above.

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercised, Tenant Lessee shall have the option (the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease) right to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, unoccupied and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable unleased space adjacent to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at in whole or in part, on the same then current Base Rent rate as applicable terms and conditions of this lease which apply to the Leased Premises except cost for Lessee Improvements and subject to proportionate increases in base rent (but not Additional Rent), taxes, insurance and common area maintenance costs based on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below)additional square footage; provided, Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space however, in the amount equal event Lessee desires to the product lease a portion of said adjacent space, Lessee must lease no less than a 40' wide by 180' deep section (i) $40.00 per leasable square foot except that portion of the Additional Space; and (ii) immediately adjacent 40' wide section used as a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence stairwell as reflected on the Additional Space Commencement Date; (dLessee's Approved Plans) The Additional Space shall and such section must be added adjacent to the Leased Premises for Premises. In order to exercise the remainder of the Term on the Additional Space Commencement Date and shall be subject option granted herein, Lessee must provide written notice to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from Lessor. From and after the first anniversary receipt of the Commencement Datesaid written notice, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, Lessor and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant Lessee shall execute an amendment to this lease within have thirty (30) days after to negotiate the Additional Space Commencement Dateparty responsible for costs associated with improvements to be constructed in the additional space. If the parties are unable to negotiate such terms prior to expiration of said thirty (30) day period, which amendment Lessee's option as granted herein shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Additional Space Option automatically terminate. The option granted herein is not deemed valid as to grant Tenant an exclusive any portion of the adjacent space that is now occupied or leased and is inapplicable to any portion of the Warehouse which is leased or occupied in the future. In the event Lessee exercises its option to lease additional space in accordance with this paragraph, LESSEE'S right to lease occupy and use said additional space shall expire and terminate on the Additional Space, and subject same day LESSEE'S right to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, to lease use the Additional Space to another party or partiesLeased Premises expires and/or terminates.

OPTION TO LEASE ADDITIONAL SPACE. At Anything contained in the provisions of this Lease to the contrary notwithstanding, and provided that this Lease has been renewed for the Renewal Term, the Tenant shall be entitled at any time prior to during the first anniversary period of three (3) years beginning on the Commencement Date, provided a Date (hereinafter referred to as "the 3-Year Period") following the Landlord's having notified the Tenant event of default does not exist at the time the option may be exercised, Tenant shall have the option (the “in writing during such period that such Additional Space Option”is available (and provided that the Tenant is not then in default in performing its obligations under the provisions of this Lease), exercisable by written notice to Lease from Tenant the Landlord additional space containing 6,500 square feet of floor area (hereinafter referred to as "the Additional Space") on the floor above or the floor below the Premises, in the Building. The Landlord (hereby affirmatively agrees to cause Additional Spaces containing in the “Additional Space Notice”; which Additional Space Notice shall identify which portion, aggregate at least 6,500 square feet of floor area on one or all, the other of the remaining leasable area such floors of the Building to, become available during the 3-Year Period for lease by the Tenant, as aforesaid. Such Additional Space having such minimum aggregate floor area may become available for lease under not more than two (2) Additional Space Leases (which remain unencumbered may consist of amendments of this Lease) commencing at different times during the 3-Year Period, and/or may be offered at differing times during the 3-Year Period by a lease with another third party, and which Tenant desires to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable Landlord to the Leased Premises, except as follows: (a) Tenant. The Base Rent for Additional Space leased under any Additional Space Lease shall be contiguous to that leased under any other Additional Space Lease. Any such lease of the Additional Space shall be at on the same then current Base Rent rate as applicable terms hereinafter set forth; 42.1. The Tenant shall be entitled to the Leased Premises on exercise such right to lease the Additional Space Commencement Date by giving the Landlord written notice of its exercise of such right within fifteen (defined below15) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) $40.00 per leasable square foot of the Additional Space; and (ii) a fraction, the numerator of which is the number of months left in the initial Term from and business days after the Additional Space Commencement Date, and Landlord notifies the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to Tenant in writing that the Additional Space is less than available. If the Tenant either fails to notify the Landlord in writing of its intent to lease the Additional Space Allowancewithin the said period of fifteen (15) days, or fails to execute and return to the Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Lease covering such Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space shall be added to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and shall be subject to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days (as such period may be extended by written agreement of the parties hereto) after such Additional Space Lease is prepared and delivered by the Landlord to the Tenant for such purpose, the Landlord shall be entitled thereafter to lease any or all such Additional Space to any person or persons whatsoever, free and clear of the Tenant's rights under the provisions of this Lease. Any Additional Space Lease entered into by the parties hereto shall not be inconsistent with the provisions of this Section 20. No failure by the Tenant to lease any Additional Space becoming available shall be construed in any manner as a waiver of the Tenant's rights hereunder to lease any other Additional Space which may subsequently become available during the 3-Year Period, as aforesaid, until the Tenant has leased Additional Space having an aggregate floor area of at least 6,500 square feet. 42.2. The Tenant's use and occupancy of the Additional Space Commencement Date(a) shall be for a term which is co-extensive with that portion of the Term of this Lease (including the Renewal Term) remaining at the entry into such Additional Space Lease, which amendment and (b) shall be set forth in a separate lease (hereinafter referred to as an "Additional Space Lease") to be entered into upon the revised Leased Premisessame terms and subject to the same conditions as those set forth in this Lease; provided, Tenant’s Pro Rata Share that anything contained in the provisions of Operating Coststhis Lease to the contrary notwithstanding, (a) for purposes of the provisions of subsection 2.1 of this Lease, as applied to the Additional Space, the Base Rent for the Additional Space, and Space for the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Initial Lease Year under such Additional Space Option is not deemed to grant Tenant an exclusive right to lease Lease shall equal the Additional Space, and subject to Tenant’s Right result obtained by multiplying the number of First Refusal, Landlord is free at any time, and from time to time, to lease square feet of floor area of the Additional Space covered thereby by that sum per square foot which the Landlord is then quoting to another party prospective tenants of space within the Building (which sum shall be calculated by the Landlord and a satisfactory explanation thereof provided to the Tenant); (b) the Additional Space covered thereby shall be delivered by the Landlord to the Tenant "as is", the Landlord having no obligation to make any improvements to, or partiesremove any improvements from, or otherwise alter, such Additional Space; and (c) such Additional Space Lease shall, at the Landlord's option, provide for the delivery of utility services and the payment of Taxes in the same manner and using the same procedure as is set forth in this Lease.

OPTION TO LEASE ADDITIONAL SPACE. At If, during the Term, the Landlord becomes aware that any time prior space contiguous to the first anniversary Premises situate on the 4th or 6th floors of the Commencement DateBuilding or floors adjacent to the 4th or 6th floors of the Building (the "Additional Premises") will become available for leasing, the Landlord shall by written notice to the Tenant, offer to the Tenant the right to lease such Additional Premises in an "as is" condition, provided a that the Tenant event of is not in default does not exist at the time the option may be exercised, under this Lease. The Tenant shall have thirty (30) days from receipt of such notice to exercise this right, failing which the option (the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, have no further rights in respect of the remaining leasable area of Additional Premises so offered by the Building which remain unencumbered by a lease with another third partyLandlord to the Tenant in such written notice, and which the Landlord may lease the Additional Premises on whatever terms it may determine. If the Tenant desires to lease) to lease any portionaccepts such offer, or all, all the provisions of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party this Lease (the “Additional Space”), upon all of the terms and conditions applicable to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base rate of Minimum Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) $40.00 per leasable square foot of the Additional Space; and (ii) a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount Rentable Area of such excess within 30 days after Landlord’s request thereforeAdditional Premises) shall apply and except for any tenant inducements which form part of this Lease, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date shall apply with respect to the Additional Space (Premises. The Minimum Rent applicable to the “Additional Space Commencement Date”) would Premises shall be determined the then market rent for similar premises in accordance with §2(a) the vicinity of the leaseBuilding. Payment The term of Base Rent and Additional Rent the Lease with respect to the Additional Space would Premises shall commence on the Additional Space Commencement Date; (d) The Additional Space shall be added later of the date upon which the Tenant gives notice that it exercises its right with respect to the Leased Additional Premises for and the remainder of the Term on date upon which the Additional Space Commencement Date Premises are vacated by the former tenant, and shall be subject for the same length of term as then remaining with respect to all the Premises. The Landlord and Tenant shall enter into a supplement to this Lease to include the Additional Premises, mutatis mutandis, save and except with respect to the rate of the terms Minimum Rent and conditions for any tenant inducements which may form part of this Lease. RIDER NO. 5 PAYMENT FOR LEASEHOLD IMPROVEMENTS - SIXTH FLOOR EXPANSION PREMISES Provided the lease. Tenant is not in default under this Lease, the Landlord shall pay to the Tenant a leasehold improvement allowance (ethe "Improvement Allowance") Notwithstanding the foregoing, from and after the first anniversary of as a once only contribution applicable only to the Commencement Date, equal to the actual cost to the Tenant may only exercise of completing its leasehold improvements in the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable Sixth Floor Expansion Premises, but not to exceed $20.00 per square feet if foot of Rentable Area of the Term for the Additional Space is no less than 60 monthsSixth Floor Expansion Premises. The Improvement Allowance shall be paid, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease compliance with the holdback requirements of the Construction Lien Act, after presentation to the Landlord of paid invoices from the Tenant's contractors and after suppliers for completion of such leasehold improvement work, upon the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Additional Space Option is not deemed to grant Tenant an exclusive right to lease the Additional Space, and subject to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, to lease the Additional Space to another party or parties.latest of:

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to during the first anniversary twelve (12) months of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercisedPrimary Term, Tenant shall have the option to rent up to an additional 20,000 square feet of available rentable space in the Building. This option shall be expressly conditioned upon Landlord having available space in the Building, and this Paragraph shall not require Landlord to keep any amount of space available for Tenant's expansion. Tenant may exercise this option only if Tenant is in possession and occupancy of the Leased Premises and is not in default under the terms of this Lease (beyond any applicable cure period). This option shall be exercised, if at all, in the “Additional Space Option”following manner and subject to the following conditions: (i) Tenant shall notify Landlord of its intention to exercise the option granted by this section in writing within the first twelve (12) months of the Primary Term. Rent for the additional space shall commence on the actual occupancy date (but in no event later than 60 days after Landlord has given Tenant access to the unoccupied additional space for purposes of Tenant constructing its leasehold improvements), exercisable and shall be calculated based on the square footage of net useable area of additional space Tenant has notified Landlord it wishes to rent pursuant to this provision, in the same manner in which the Monthly Rental stipulated in Paragraph 3(a) was calculated. The additional net useable area and rental shall be stipulated to by written notice from Landlord and Tenant prior to occupancy of the additional space by Tenant. (ii) If Tenant exercises the option granted by this article, Landlord will use reasonable diligence to make the additional space available to Tenant no later than sixty (60) days after notification of Tenant's intent to exercise the “Additional Space Notice”; which Additional Space Notice option. Any failure to deliver possession within this time period shall identify which portionnot invalidate this Lease or the exercise of this option or extend the Lease Term provided Landlord has taken all reasonable steps necessary to deliver possession of the additional area by the required date, and provided Landlord has not acquiesced, consented to, or all, otherwise authorized any action that would in any way delay or interfere with Landlord's ability to deliver possession of the remaining leasable area space by such date, but Rent for the additional space shall not commence until Landlord is able to deliver exclusive possession of the Building which remain unencumbered by a lease with another third party, space to Tenant and which Tenant desires to lease) to lease any portion, or all, has commenced occupancy of the remaining leasable areas space; provided, however, in any event the Rent shall commence not more than 60 days after Landlord has delivered to Tenant access to the unoccupied additional space for purposes of Tenant constructing its leasehold improvements. Any space leased pursuant to this Paragraph shall be leased under the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the same terms and conditions applicable provided for in this Lease (including, by way of example and not limitation, Rent, expiration of Lease Term, and construction of leasehold improvements, i.e., Tenant, not Landlord, shall be responsible for constructing any improvements in the additional space), except that the original allowances for tenant improvement, interior architecture, construction management, relocation, and engineering fees shall be prorated to reflect the remaining Primary Term. Furthermore, the amount of the termination fee and monthly payments by Tenant to the Security Account as provided in Paragraph 41(b) shall be adjusted to reflect any additional space added to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) $40.00 per leasable square foot of the Additional Space; and (ii) a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) of the lease. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space shall be added to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and shall be subject to all of the terms and conditions of the lease. (e) Notwithstanding the foregoing, from and after the first anniversary of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Additional Space Option is not deemed to grant Tenant an exclusive right to lease the Additional Space, and subject to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, to lease the Additional Space to another party or parties.

OPTION TO LEASE ADDITIONAL SPACE. At any time prior Subject to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercised, Tenant shall have the option (the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease) to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable hereinafter set forth, and provided Tenant is not then in default under the terms of this Lease, the Landlord hereby grants to Tenant an option to lease any space on the Leased Premises, except eighth (8th) floor of the Building as follows: such space becomes available (a) the "Expansion Space"). The Base Rent for the Additional Expansion Space shall be leased to Tenant at the same then current Base Rent rate as applicable to the Leased Premises (on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of (i) $40.00 per leasable square foot of the Additional Space; and (iibasis) a fraction, the numerator of which is the number of months left in the initial Term from and after the Additional Space Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of the improvements to the Additional Space, and (iii) the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Space Commencement Date. (c) The commencement date effect with respect to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) Premises as of the leasedate Tenant exercises its option. Payment of Base Rent and Additional Rent with respect to the Additional Space would commence on the Additional Space Commencement Date; (d) The Additional Space Landlord shall be added to the Leased Premises for the remainder give Tenant notice of the Term on available space, setting forth the Additional Space Commencement Date and shall be subject to all of the material terms and conditions of the lease. (e) Notwithstanding the foregoing, Lease. Following receipt of such notice from and after the first anniversary of the Commencement DateLandlord, Tenant may only shall have five (5) business days in which to notify Tenant in writing of its intent to exercise its option with respect to the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 months, and (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for the Leased Premises and the Additional Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement DateExpansion Space. In no event may Tenant exercise the Additional Space Option in any Renewal Term. (f) Landlord and If Tenant shall exercise its option with respect to Expansion Space, Tenant shall have an additional five (5) business days to execute and deliver to Landlord a lease agreement (in the form of an amendment to this Lease) with respect to such space. Tenant acknowledges and decrees that any such Expansion Space shall be leased by Tenant in its "As Is" condition, and that Landlord shall have no obligation to alter, refurbish or improve such space, except as hereinafter provided. In the event Tenant exercises its option to lease within thirty Expansion Space on the eighth (308th) days after floor of the Additional Building, as herein set forth, such Expansion Space Commencement Date, which amendment shall set forth constitute part of the revised Leased Premises, effective as of the date an amendment to Lease is executed by both parties, and EXHIBIT "A" shall be amended to designate the expanded Premises. If, as a result of Tenant’s Pro Rata Share 's lease of Operating Coststhe Expansion Space, Tenant is the Base Rent for sole tenant on the Additional Spaceeighth (8th) floor of the Building, and the new Term expiration datePremises constitute a single suite of offices, if applicable. (g) Further notwithstanding then Landlord shall have the foregoing, Tenant’s Additional Space Option is not deemed to grant Tenant an exclusive right to lease reconfigure the Additional Spacespace on the eighth (8th) floor to reflect a one-tenant occupancy of such suite of offices. Such reconfiguration of space may include, without limitation, the elimination of common areas (including hallways, corridors, bathrooms and mechanical rooms), which areas shall be incorporated into the square footage comprising the Premises, and subject the Premises shall constitute the entire eighth (8th) floor of the Building for all purposes. Provided Tenant exercises the option to Tenant’s Right of First Refusallease Expansion Space hereunder no later than December 31, 1996, Landlord is free shall make improvements to the Expansion Space at any time, a cost not to exceed $21,152. Such improvements shall be made in accordance with plans and from time specifications to time, to lease the Additional Space to another party or partiesbe developed by Landlord and approved by Tenant. Any construction costs in excess of $21,152 shall be borne by Tenant.

OPTION TO LEASE ADDITIONAL SPACE. At any time prior to the first anniversary of the Commencement Date, provided a Tenant event of default does not exist at the time the option may be exercised, Tenant shall have the option to -------------------------------- lease either or both portions of the building located at 000 Xxxxxxxx Xxxxxx Xxxxx outlined on Exhibits "D-1" or "D-2" attached hereto and made a part hereof (the “Additional Space Option”), exercisable by written notice from Tenant to Landlord (the “Additional Space Notice”; which Additional Space Notice shall identify which portion, or all, of the remaining leasable area of the Building which remain unencumbered by a lease with another third party, and which Tenant desires to lease"Option Space") to lease any portion, or all, of the remaining leasable areas of the Office Condominium that remain unencumbered, and have not previously been encumbered, by a lease with another third party (the “Additional Space”), upon all of the terms and conditions applicable to the Leased Premises, except as follows: (a) The Base Rent for the Additional Space shall be at the same then current Base Rent rate as applicable to the Leased Premises on the Additional Space Commencement Date (defined below) with the same annual increases as set forth in this lease. (b) Subject to the Additional Space Allowance (defined below), Tenant shall be responsible for the cost of completing the improvements to the Additional Space. Landlord shall provide Tenant with a tenant improvement allowance for the Additional Space in the amount equal to the product of provided (i) $40.00 per leasable square foot Tenant shall notify Landlord of the Additional Space; and its election to exercise its option within sixty (ii60) a fraction, the numerator of which is the number of months left in the initial Term from and days after the Additional Space Premises "A" Commencement Date, and the denominator of which is 72 (the “Additional Space Allowance”). In the event the actual costs of completing the improvements to the Additional Space is less than the Additional Space Allowance, Landlord will, at Tenant’s option, credit Tenant the difference in Base Rent or pay Tenant such difference in one lump sum. In the event the actual costs of completing the improvements to the Additional Space exceeds the Additional Space Allowance, then Tenant shall pay to Landlord (i) 33% of the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than the commencement of the construction of the improvements to the Additional Space, (ii) another 33% of Tenant shall not be in default hereunder at the projected amount of such excess within 30 days after Landlord’s request therefore, but in no event earlier than completion of approximately one-half of time it exercises the improvements to option or on the Additional Commencement Date for the lease covering the Option Space, and (iii) Tenant's tangible net worth on the balance of such excess costs to be paid within 30 days after Landlord’s request therefore, but in no event earlier than the Additional Option Space Commencement Date. (c) The commencement date with respect Date shall be at least equal to the Additional Space (the “Additional Space Commencement Date”) would be determined in accordance with §2(a) its tangible net worth as of the leasedate hereof. Payment As of Base Rent and Additional Rent with respect to the Additional Space would commence on date hereof, Tenant's tangible net worth is $46,400,000. The lease for the Additional Space Commencement Date; (d) The Additional Option Space shall be added have a term equal to the Leased Premises for the remainder of the Term on the Additional Space Commencement Date and of this Lease. Such lease shall be subject to all of upon the terms and conditions rates, including leasehold improvement allowance and renewal rights, included in this Lease. The lease shall be substantially in the form of this Lease. The lease must be executed by Tenant within fifteen (15) days after Tenant receives the lease. lease from Landlord. If Tenant fails to execute the lease as set forth above within fifteen (e15) Notwithstanding days after exercise of its option for any reason, then the foregoing, from option to lease set forth in this Section 7 shall terminate absolutely and after without further notice. The improvements to the first anniversary Option Space shall be similar in quantity and quality to those provided in Premises "A" and "B". The Option Space Scheduled Commencement Date shall be the earlier of the Commencement Date, Tenant may only exercise the Additional Space Option (i) for any Additional Space containing less than 10,000 leasable square feet if the Term for the Additional Space is no less than 60 monthsJuly 1, and 1997, or (ii) for any Additional Space containing 10,000 or more leasable square feet if the Term for date on which the Leased Premises and the Additional Option Space is extended such that there are 60 months remaining on the Term for all space subject to this lease from and after the Additional Space Commencement Date. In no event may Tenant exercise the Additional Space Option in any Renewal TermSubstantially Completed. (f) Landlord and Tenant shall execute an amendment to this lease within thirty (30) days after the Additional Space Commencement Date, which amendment shall set forth the revised Leased Premises, Tenant’s Pro Rata Share of Operating Costs, the Base Rent for the Additional Space, and the new Term expiration date, if applicable. (g) Further notwithstanding the foregoing, Tenant’s Additional Space Option is not deemed to grant Tenant an exclusive right to lease the Additional Space, and subject to Tenant’s Right of First Refusal, Landlord is free at any time, and from time to time, to lease the Additional Space to another party or parties.