Common use of Option to Extend Lease Term Clause in Contracts

Option to Extend Lease Term. At the expiration of the original Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving Landlord written notice (the “Option Notice”) of its intention to do so not later than twelve (12) months prior to the expiration of the original Lease Term, and thereafter twelve (12) months prior to the expiration of the applicable Extended Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:

Option to Extend Lease Term. At Landlord hereby grants to Tenant one (1) option (“Option”) to extend the expiration of the original Lease Term, Tenant may extend this Lease as to the entire Premises or Term for a portion of the Premises for two (2) extended terms period of five (5) years each (each an “Extended Option Term”) immediately following the expiration of the Extension Term. The Option shall be exercised, if at all, by giving Landlord written notice (the “Option Notice”) of its intention delivered by Tenant to do so Landlord not later than nine (9) full months (but no earlier than twelve (12) months full months) prior to the expiration of the original Extension Term. Further, the Option shall not be deemed to be properly exercised if, as of the date of the Option Notice, Tenant (i) is in uncured default under the Lease continuing beyond the expiration of any applicable notice, grace and/or cure period, (ii) has assigned the Lease or its interest therein, or (iii) has sublet more than fifty percent (50%) of the Remainder Premises. Provided Tenant has properly and timely exercised the Option, the Extension Term shall be extended by the Option Term, and all terms, covenants and conditions of the Lease shall remain unmodified and in full force and effect, except for the Annual Base Rent, which shall be adjusted to the “Fair Market Rental Value” for the Remainder Premises, as reasonably determined by Landlord as provided below. As used herein, “Fair Market Rental Value” shall mean the projected prevailing rental rate (but not inducements or other concessions) as of the first day of the Option Term for similarly improved premises situated in a similar building in a similar Northwest suburban market area, within or close to the Building with similar loading, clear height, and other attributes of the Building. No additional options to extend the Option Term shall be granted or allowed unless specifically agreed to in writing between Landlord and Tenant. Landlord shall notify Tenant in writing of such determination of Fair Market Rental Value within twenty (20) days after Landlord’s receipt of the Option Notice. If Tenant shall dispute Landlord’s determination of Fair Market Rental Value, then Tenant shall notify Landlord of Tenant’s objections within ten (10) days of Tenant’s receipt of Landlord’s determination, and such objection notice shall further set forth Tenant’s determination of Fair Market Rental Value. Upon receipt of such notice from Tenant, Landlord and Tenant shall attempt in good faith to resolve their differences within thirty (30) days thereafter twelve (12the “Negotiation Period”). Should the parties be unable to resolve their differences within the Negotiation Period, Tenant may elect to rescind its Option Notice by delivering written notice thereof to Landlord within five (5) months prior to business days after the expiration of the applicable Extended Term; providedNegotiation Period. If Tenant does not rescind its Option Notice within said five (5) business day period, however, that Tenant is then each party shall have the right to submit the issue for neutral binding arbitration (and not by court action) to the American Arbitration Association in material default beyond any applicable accordance with the rules of such Association then in effect. The party submitting to arbitration shall exercise such right of arbitration by delivering written notice and cure period under the Lease on of such election within thirty (30) days after the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion objections and Tenant’s determination of the PremisesFair Market Rental Value. If Tenant elects to extend the Lease for only a portion arbitrator shall decide that Landlord’s determination of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessionsRental Value was reasonable, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of then the Fair Market Rental for Value shall be the Premises, as amount previously determined by as follows:Landlord. If the arbitrator shall determine that Landlord’s determination of Fair Market Rental Value was unreasonable, then the arbitrator shall be permitted to determine Fair Market Rental Value. The decision of the arbitrator shall be binding upon both parties. Each party shall share equally the cost of the arbitration process.

Option to Extend Lease Term. At Grant of Options Landlord hereby grants to Tenant one option (the "Option") to extend the Lease Term for additional term of five years (the "Extension)", on the same terms and conditions as set forth in the Lease, but at an increased rent as negotiated. The Option shall be exercised only by written notice delivered to Landlord at least one hundred twenty (120) days before the expiration of the original Lease Term, . If Tenant may extend this Lease as fails to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving deliver Landlord written notice (the “Option Notice”) of its intention to do so not later than twelve (12) months prior to the expiration of the original Lease Termexercise of an Option within the prescribed time period, such Option shall lapse, and thereafter twelve (12) months prior to the expiration of the applicable Extended Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) there shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s no further right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s AffiliateTerm. The Extended Term Option shall be upon all of exercisable by Tenant on the terms and express conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) at the time of the exercise, and at all times prior to the commencement of such Extension, Tenant shall not be in default under any right to rent-free possession; of the provisions of this Lease and (b) any right to further extension Tenant has not been ten (10) or more days late in the payment of rent more than a total of three (3) times during the Lease Term beyond the Extended Terms set forth herein above. The receipt and acceptance by Landlord of delinquent Rent shall not constitute a waiver of any other default; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost it shall constitute only a waiver of security timely payment for the Building; and (h) the right to the continuation particular Rent payment involved. No act or conduct of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessionslandlord, including including, without limitation, free rent, improvement allowance, base year and other monetary concessions, component the acceptance of keys to the Premises shall constitute an acceptance of the Fair Market Rental surrender of the Premises by Tenant before the expiration of the Term. Only a written notice from Landlord to Tenant shall constitute acceptance of the surrender of the Premises and accomplish a termination of the Lease. Xxxxxxxx's consent to or approval of any act by Tenant requiring Landlord's consent or approval shall not be deemed to waive or render unnecessary Landlord's consent to or approval of any subsequent act by Xxxxxx. Any waiver by Landlord of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of the Lease. The parties hereto have executed this Lease as of the dates set forth below. LANDLORD TENANT THE XXXXXXX DRUG COMPANY PACIFIC TRAIL, INC./LONDON FOG INDUSTRIES By: By:/s/ Xxxxxxx X. Xxxxxxx --------------------------- ------------------------- Title: Title:EVP & CFO ------------------------ ---------------------- By: ------------------------- Title: ---------------------- CONSULT YOUR ADVISORS - This document has been prepared for approval by your attorney. No representation or recommendation is made by Xxxxxx & Company as to the legal sufficiency or tax consequences of this document or the transaction to which it relates. These are questions for your attorney. In any real estate transaction, it is recommended that you consult with a professional, such as a civil engineer, industrial hygienist or other person, with experience in evaluating the condition of the property, including the possible presence of asbestos, hazardous materials and underground storage tanks. ACKNOWLEDGMENT OF LESSOR STATE OF WASHINGTON ) ) SS. COUNTY OF KING ) On this ____________________ day of _____________________________ ,19__ , before the undersigned, a Notary Public in and for the PremisesState of Washington, as determined by as follows:personally appeared ____________________________________________________________________________ to me known to be the __________________________ and _______________________ of the corporation that executed the within and foregoing lease, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation, for the uses and purposes therein mentioned, and on oath stated that they were authorized to execute said instrument and that the seal affixed is the corporate seal of said corporation.

Option to Extend Lease Term. At Tenant shall have one (1) right and option, which said option shall not be severed from this Lease or separately assigned, mortgaged or transferred, at its election, to extend the Original Lease Term for an additional period of three (3) years (the “Extension Period’) commencing upon the expiration of the original Original Lease Term, provided that (a) Landlord shall receive written notice from Tenant may extend this Lease as of the exercise of its election at least nine (9) months prior to the entire Premises or a portion expiration of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving Landlord written notice (the “Option Notice”) of its intention to do so not later Original Lease Term but no sooner than twelve (12) months prior to the expiration of the original Original Lease Term, (b) no Event of Default shall exist at the time of Landlord’s receipt of such notice and thereafter twelve at the expiration of the Original Lease Term; and (12c) months prior the original Tenant named herein or any Affiliate is itself occupying the entire Premises both at the time of giving the applicable notice and at the commencement of the Extension Period. If Landlord shall receive notice of the exercise of the election in the manner and within the time provided aforesaid, the Original Lease Term shall be extended upon the receipt of the notice without the requirement of any action on the part of Landlord or Tenant, except as may be required in order to determine Base Rent as hereinafter provided. Except for the amount of Base Rent (which is to be determined as hereinafter provided), all the terms, covenants, conditions, provisions and agreements in the Lease contained shall be applicable to the Extension Period, except that there shall be no further options to extend the Lease Term nor shall Landlord be obligated to make or pay for any improvements to the Premises nor pay any inducement payments of any kind or nature. Landlord hereby reserves the right, exercisable by Landlord in its sole discretion, to waive (in writing) any condition precedent set forth in clauses (a), (b) or (c) above. Time is of the essence with respect to the exercise of the option contained herein. Tenant shall not have the right to give any notice exercising such option after the expiration of the applicable Extended Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall time limitation set forth Tenant’s election herein, and any notice given after such time limitation purporting to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) exercise such option shall be void and of no force or effect, unless Landlord has waived in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: writing clause (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:.

Option to Extend Lease Term. At Lessee shall have the expiration of right, at its option, to extend the original Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises Term for two one (21) extended terms period of five (5) years each (each an “Extended the "Option Term”") immediately following the Expiration Date. Lessee shall exercise its right to extend the Term by giving Landlord delivery of written notice to Lessor at least six (6) months and not more than nine (9) months prior to the “then scheduled Expiration Date. All of the terms, covenants and conditions (including without limitation defined terms) contained in this Lease shall be applicable to the Option Notice”Term in the event of exercise by Lessee; provided, however, that the Term and the Base Rent shall be modified as provided herein and Lessee shall have no further options to extend the Term thereafter. Subject to adjustment as hereafter provided, the Base Rent for the Option Term shall be adjusted to the greater of (i) the Base Rent for the last month of its intention the Term or (ii) Prevailing Market Rent, described below. The "Prevailing Market Rent" shall be equal to do so not later than twelve the rental per square foot of rentable area of the Premises per month as of the date which is six (126) months prior to the expiration of the original Original Term of the Lease Termprevailing for comparable space in the same area where the Premises are located. In determining the Prevailing Market Rent, the particular configuration, frontage along a public thoroughfare, signage visible to the public, parking facilities, and thereafter twelve general level of quality of improvements and location of each comparison building shall be taken into account. If Lessee has timely exercised the Option, Lessor shall notify Lessee in writing of the proposed new Base Rent determined by Lessor for the Option Term at least ninety (1290) months days prior to the expiration commencement date of the applicable Extended Option Term; provided. Unless Lessee objects to the amount determined by Lessor within fifteen (15) days after receipt of such notice, however, that Tenant is not the amount stated in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:new Base

Option to Extend Lease Term. At Tenant shall have the expiration of the original Lease Termright and option, Tenant may extend which said option shall not be severed from this Lease as or separately assigned, mortgaged or transferred, at its election, to extend the entire Premises or a portion of the Premises Original Lease Term for two one (21) extended terms additional period of five (5) years each (each an “Extended Term”) by giving Landlord written notice (the “Option NoticeExtension Period”) commencing upon the expiration of the Original Lease Term, provided that (a) Landlord shall receive written notice from Tenant of the exercise of its intention to do so not later than election at least twelve (12) months prior to the expiration of the original Original Lease Term, and thereafter twelve but no sooner than fifteen (1215) months prior to the expiration of the applicable Extended Original Lease Term; provided, however, that (b) no Event of Default shall exist at the time of Landlord’s receipt of such notice and at the expiration of the Original Lease Term; and (c) the original Tenant named herein or any Affiliate is not in material default beyond any itself occupying the entire Premises both at the time of giving the applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following at the commencement of the applicable Extended TermExtension Period. Any termination Notwithstanding the foregoing, in the event that there is a monetary Event of Default by Tenant two (2) or more times during any five (5) year period (even if subsequently cured by Tenant), then the extension option set forth herein shall automatically terminate and shall be of no further force and effect. If Landlord shall receive notice of the entire exercise of the election in the manner and within the time provided aforesaid, the Original Lease Term shall be extended upon the receipt of the notice without the requirement of any action on the part of Landlord or Tenant, except as may be required in order to determine Base Rent as hereinafter provided. Except for the amount of Base Rent (which is to be determined as hereinafter provided), all the terms, covenants, conditions, provisions and agreements contained in this Lease shall result in automatic termination of this option. Tenant’s right be applicable to the Extension Period, except that there shall be no further options to extend the Lease Term provided herein is personal nor shall Landlord be obligated to Tenant and may not be assigned make or otherwise transferred except pay for any improvements to the Premises nor pay any inducement payments of any kind or nature. Landlord hereby reserves the right, exercisable by Landlord in connection with a permitted assignment of this Leaseits sole discretion, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: waive (in writing) any condition precedent set forth in clauses (a) any right to rent-free possession; ), (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; or (c) any right above. Time is of the essence with respect to continue to pay the same Base Rent; (d) any right to additional exercise of the option contained herein. Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) shall not have the right to give any notice exercising such option after the continuation expiration of the applicable time limitation set forth herein, and any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term notice given after such time limitation purporting to exercise such option shall be the actual Operating Expenses without any cap void and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:no force or effect.

Option to Extend Lease Term. At Landlord hereby grants Tenant the expiration right to extend the Term of the original 1195 Building Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two one (21) extended terms additional period of five (5) years each (each an such extended period is hereinafter referred to as the “Extended Term”) by giving on the same terms and conditions contained in the 1195 Building Lease, except that (i) Base Rent for the Extended Term shall be as set forth hereinbelow with annual three percent (3%) escalations on each anniversary of the commencement of the Extended Term, (ii) no additional options to extend shall apply following the expiration of the Extended Term, and (iii) Landlord written shall have no obligation to make any improvements to the Premises or contribute any amounts therefor. Written notice of Tenant’s exercise of its option to extend (the “Option Noticeto Extend”) the Term of its intention the 1195 Building Lease for the Extended Term must be given to do so not later Landlord no less than twelve eighteen (1218) months prior to the expiration date the Term of the original 1195 Building Lease Termwould otherwise expire. If Tenant is in default under the 1195 Building Lease, and thereafter twelve (12) months prior Tenant shall have no Option to Extend the expiration Term of the applicable Extended Term1195 Building Lease until such default is cured within the cure period set forth in the 1195 Building Lease for such default, if any; provided, howeverthat the period of time within which said Option to Extend may be exercised shall not be extended or enlarged by reason of Tenant’s inability to exercise said Option to Extend because of a default. In the event Tenant validly exercises its Option to Extend the Term of the 1195 Building Lease as herein provided, that Tenant is not in material default beyond any applicable notice and cure period under Base Rent shall be adjusted as of the Lease on the commencement date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security the fair market Base Rent for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term as follows (but in no event shall it be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to less than ninety-five percent (95%) of the Base Rent component for the month immediately prior to the commencement of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:Extended Term):

Option to Extend Lease Term. At Tenant shall have the expiration right to extend the term of the original Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms additional consecutive periods of five (5) years each (each hereinafter an “Extended "Extension Term”) "), such rights to be exercised by giving Landlord written notice from Tenant to Landlord given not less than three hundred sixty-five (the “Option Notice”365) of its intention to do so not later than twelve (12) months days prior to the applicable expiration date of the original Lease Term, and thereafter twelve (12) months prior to the expiration . Each extension right may only be exercised if no Event of the applicable Extended Term; provided, however, that Default by Tenant is not in material default beyond any applicable notice and cure period under the Lease has occurred and is continuing, either at the time of the exercise of the extension right or at the commencement of such extension. In the event this Lease is terminated for any reason, the rights granted to Tenant in this paragraph shall also terminate at the same time. In the event Tenant exercises the right to extend the term of this Lease as provided herein and subsequently an Event of Default by Tenant occurs prior to commencement of an Extension Term, Landlord may elect, by written notice to Tenant, to terminate Tenant's prior election to exercise its right to extend the term hereof, in which event Tenant shall have no rights with respect to the Extension Term or any subsequent Extension Term. Tenant's failure or inability to timely and properly exercise its right to the first Extension Term shall automatically terminate the second Extension Term. The right to extend the term of this Lease may only be exercised by Tenant and any permitted assignee under Article 10 above, and may not be transferred outside of this Lease or exercised by any other person or entity. The leasing of the Premises during any Extension Term shall be upon the same terms and conditions as are contained herein with respect to the initial term, and the Lease Term shall be deemed to include such Extension Term, except that (1) there shall be no further options to extend the term hereof after the Extension Term unless expressly granted by the Landlord in writing, (2) the provisions of this Lease shall not apply that are in the nature of concessions to induce Tenant to enter into this Lease such as rent abatement, tenant allowances, tenant improvements and the like, and (3) the monthly Base Rent rate per rentable square foot during each Extension Term shall be the then fair market rent as reasonably determined by Landlord (including periodic increases to Base Rent during each Extension Term), but in no event less than the Base Rent rate payable during the final month of the previous Lease Term. The fair market rent determined by Landlord shall be based on rents for comparable space of comparable size with a comparable level of tenant improvements for a similar term and commencement date for tenants of similar credit to that of Tenant, by reference to first-class space in other buildings comparable to the Buildings in age, quality and location (south Orange County office buildings in office/ business centers or parks as defined by CB Richxxx Xxxxx xx of the date of giving such notice or on the date of commencement of such Extended Termthis Lease). The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion Upon notification from Tenant of the Premises. If Tenant elects exercise of each extension option, Landlord shall, at least one hundred fifty (150) days prior to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Extension Term. Any termination , notify Tenant in writing of the entire Lease proposed rental for the extension term; Tenant shall result within fifteen (15) business days following receipt of same notify Landlord in automatic termination writing of the acceptance or rejection of the proposed rental. TENANT'S FAILURE TO TIMELY PROVIDE SUCH NOTICE SHALL CONSTITUTE ACCEPTANCE OF THE PROPOSED RENTAL. In the event of rejection by Tenant, the extension rental shall be determined as follows: Within fifteen (15) days following notification of rejection, Landlord and Tenant shall each appoint a disinterested and qualified real estate professional (but not an appraiser). If these two real estate professionals cannot agree upon an extension rental within fifteen (15) days following their appointment, the two appointees shall forthwith select a third disinterested and qualified real estate professional, and the decision of any two of the three real estate professionals shall be binding. Notification in writing of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term decision shall be upon all made by the real estate professionals to Landlord and Tenant within thirty (30) days following the selection of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply)third real estate professional. Landlord and Tenant hereby acknowledge shall bear the expense of the real estate professional appointed by each, and agree that the Base Rent during each Extended Term expense of the third real estate professional shall be equal to ninety-five shared equally by both parties. During such process for establishing rent, Tenant shall pay rent for the Extension Term at Landlord's rate, with retroactive adjustment made if a different rate is established as provided above. Within fifteen (95%15) days after the rental has been finally determined, the parties shall execute a written confirmation of the Extension Term and extension Base Rent component Rent. Failure or refusal of Tenant to execute the “Fair Market Rental” and one hundred percent (100%) confirming memorandum shall be an Event of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:Default.

Option to Extend Lease Term. At Tenant shall have two (2) option(s), which said option(s) shall not be severed from this Lease or separately assigned, mortgaged or transferred, at its election, to extend the Lease Term as described in “Option to Extend the Lease Term” in Article 1.1 (with each such option period being referred to as an “Extension Period”), with each Extension Period commencing upon the expiration of the original then current Lease Term, provided that (a) Landlord shall receive written notice from Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving Landlord written notice (the “Option Notice”) exercise of its intention to do so not later than election at least twelve (12) months prior to the expiration of the original then current Lease Term, and thereafter twelve Term but no sooner than fifteen (1215) months prior to the expiration of the applicable Extended then current Lease Term; provided, however, that Tenant is not in material default beyond any applicable (b) no Event of Default shall exist at the time of Landlord’s receipt of such notice and cure period under at the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion expiration of the Premises. If then current Lease Term; and (c) the original Tenant elects named herein or any transferee pursuant to extend the Lease for only a portion an assignment permitted hereunder or approved by Landlord is itself occupying at least fifty percent (50%) of the Premises, the portion rentable area of the Premises for which Tenant elects not to extend both at the time of giving the notice. If Landlord shall receive notice of the exercise of the election in the manner and within the time provided aforesaid, the Lease Term shall be: (i) either located entirely on one floor be extended upon the receipt of the Premises notice without the requirement of any action on the part of Landlord or located on one entire floor Tenant, except as may be required in order CONFIDENTIAL TREATMENT REQUESTED UNDER C.F.R. SECTIONS 200.80(b)(4), 200.83 AND 230.406. [****] INDICATES OMITTED MATERIAL THAT IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST FILED SEPARATELY WITH THE COMMISSION. THE OMITTED MATERIAL HAS BEEN FILED SEPARATELY WITH THE COMMISSION. to determine Base Rent as hereinafter provided. Except for the amount of Base Rent (which is to be determined as hereinafter provided), all the terms, covenants, conditions, provisions and a portion of agreements in the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) Lease contained shall be in a readily marketable and leasable location. Landlord applicable to the Extension Period, except that there shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right no further options to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a after Tenant’s Affiliate. The Extended Term shall be upon all exercise of the terms and conditions second option hereunder, nor shall Landlord be obligated to make or pay for any improvements to the Premises nor pay any inducement payments of this Leaseany kind or nature. Landlord hereby reserves the right, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: exercisable by Landlord in its sole discretion, to waive (in writing) any condition precedent set forth in clauses (a) any right to rent-free possession; ), (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; or (c) any right above. Time is of the essence with respect to continue to pay the same Base Rent; (d) any right to additional exercise of the options contained herein. Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) shall not have the right to give any notice exercising such options after the continuation expiration of the applicable time limitation set forth herein, and any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term notice given after such time limitation purporting to exercise any such option shall be the actual Operating Expenses without any cap void and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:no force or effect.

Option to Extend Lease Term. At Tenant shall have two (2) option(s), which said option(s) shall not be severed from this Lease or separately assigned, mortgaged or transferred, at its election, to extend the Lease Term as described in “Option to Extend the Lease Term” in Article 1.1 (with each such option period being referred to as an “Extension Period”), with each Extension Period commencing upon the expiration of the original then current Lease Term, provided that (a) Landlord shall receive written notice from Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Term”) by giving Landlord written notice (the “Option Notice”) exercise of its intention to do so not later than election at least twelve (12) months prior to the expiration of the original then current Lease Term, and thereafter twelve Term but no sooner than fifteen (1215) months prior to the expiration of the applicable Extended then current Lease Term; provided, however, that Tenant is not in material default beyond any applicable (b) no Event of Default shall exist at the time of Landlord’s receipt of such notice and cure period under at the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion expiration of the Premises. If then current Lease Term; and (c) the original Tenant elects named herein or any transferee pursuant to extend the Lease for only a portion an assignment permitted hereunder or approved by Landlord is itself occupying at least fifty percent (50%) of the Premises, the portion rentable area of the Premises for which Tenant elects not to extend both at the time of giving the notice. If Landlord shall receive notice of the exercise of the election in the manner and within the time provided aforesaid, the Lease Term shall be: (i) either located entirely on one floor be extended upon the receipt of the Premises notice without the requirement of any action on the part of Landlord or located on one entire floor Tenant, except as may be required in order to determine Base Rent as hereinafter provided. Except for the amount of Base Rent (which is to be determined as hereinafter provided), all the terms, covenants, conditions, provisions and a portion of agreements in the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) Lease contained shall be in a readily marketable and leasable location. Landlord applicable to the Extension Period, except that there shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right no further options to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a after Tenant’s Affiliate. The Extended Term shall be upon all exercise of the terms and conditions second option hereunder, nor shall Landlord be obligated to make or pay for any improvements to the Premises nor pay any inducement payments of this Leaseany kind or nature. Landlord hereby reserves the right, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: exercisable by Landlord in its sole discretion, to waive (in writing) any condition precedent set forth in clauses (a) any right to rent-free possession; ), (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; or (c) any right above. Time is of the essence with respect to continue to pay the same Base Rent; (d) any right to additional exercise of the options contained herein. Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) shall not have the right to give any notice exercising such options after the continuation expiration of the applicable time limitation set forth herein, and any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term notice given after such time limitation purporting to exercise any such option shall be the actual Operating Expenses without any cap void and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (95%) of the Base Rent component of the “Fair Market Rental” and one hundred percent (100%) of the economic concessions, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:no force or effect.

Option to Extend Lease Term. At the expiration Paragraph 2.2 of the original Original Lease Term, is hereby deleted in its entirety. Landlord hereby grants to Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms options (each individually, “Option”) to extend the Lease Term for the entire Final Remaining Premises for a period of five (5) years each (each an each, the “Extended Option Term”) immediately following the expiration of the Final Remaining Premises Term, and if applicable the Option Term following the same if the Option therefore is exercised pursuant to this paragraph. Each Option shall be exercised, if at all, by giving Landlord written notice (the “Option Notice”) of its intention delivered by Tenant to do so Landlord not later than twelve two hundred seventy days (12270) months days (but no earlier than three hundred sixty-five [365] days) prior to the expiration of the original Lease Final Remaining Premise Term or Option Term, and thereafter twelve (12) months prior as applicable. Further, each Option shall not be deemed to the expiration be properly exercised if, as of the applicable Extended Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend or at the Lease for all or a portion end of the Premises. If then applicable Final Remaining Option Premises Term or Option Term, Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of is in uncured default under the Premises or located on one entire floor and a portion of the other floor; Lease, (ii) a minimum of 15,000 RSF; has assigned the Lease or its interest therein, or (iii) adjacent to a window line and easily accessible; and has sublet more than fifty percent (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliate. The Extended Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market Rental: (a) any right to rent-free possession; (b) any right to further extension of the Lease Term beyond the Extended Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; (e) any right to terminate the Extended Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for the Building; and (h) the right to the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended Term shall be equal to ninety-five (9550%) of the Base Rent component Final Remaining Premises. Provided Tenant has properly and timely exercised the Option, the Final Remaining Premises Term shall be extended by the applicable Option Term, and Landlord shall have no obligation to provide an allowance to Tenant for, or to make or pay for any improvements or alterations to the Final Remaining Premises in connection with either Option, and all terms, covenants and conditions of the “Fair Market Rental” Lease (as amended) shall remain unmodified and one hundred percent (100%) of the economic concessionsin full force and effect, including without limitation, free rent, improvement allowance, base year and other monetary concessions, component of the Fair Market Rental except for the Annual Base Rent, which shall be adjusted to the “Market Rate” for the Final Remaining Premises, as determined by as follows:defined and in accordance with 3.1.2 of the Original Lease. No additional options to extend the second Option Term herein shall be granted or allowed unless specifically agreed to in writing between Landlord and Tenant.

Option to Extend Lease Term. At the expiration of the original Lease Term, Tenant may extend this Lease as to the entire Premises or a portion of the Premises for two (2) extended terms of five (5) years each (each an “Extended Option Term”) by giving Landlord written notice (the “Option Notice”) of its intention to do so not later than twelve (12) months prior to the expiration of the original Lease Term, and thereafter twelve (12) months prior to the expiration of the applicable Extended Option Term; provided, however, that Tenant is not in material default beyond any applicable notice and cure period under the Lease on the date of giving such notice or on the date of commencement of such Extended Term. The Option Notice shall set forth Tenant’s election to extend the Lease for all or a portion of the Premises. If Tenant elects to extend the Lease for only a portion of the Premises, the portion of the Premises for which Tenant elects not to extend the Lease shall be: (i) either located entirely on one floor of the Premises or located on one entire floor and a portion of the other floor; (ii) a minimum of 15,000 RSF; (iii) adjacent to a window line and easily accessible; and (iv) shall be in a readily marketable and leasable location. Landlord shall be responsible for any and all costs to separate the portion of the Premises for which Tenant elects not to extend the Lease from the remainder of the Premises such that the space is a separate easily accessible and readily marketable space promptly following the commencement of the applicable Extended Term. Any termination of the entire Lease shall result in automatic termination of this option. Tenant’s right to extend the Lease Term term provided herein is personal to Tenant and may not be assigned or otherwise transferred except in connection with a permitted assignment of this Lease, including to a Tenant’s Affiliatetransferred. The Extended Each Option Term shall be upon all of the terms and conditions of this Lease, except that the following rights of Tenant during the original Term of this Lease Term shall not apply during such Extended Term unless granted as part of the Fair Market RentalOption Terms: (a) any right to rent-free possession; (b) any right to further extension of the term of the Lease Term beyond the Extended Option Terms set forth herein above; (c) any right to continue to pay the same Base Rent; (d) any right to additional Tenant Allowance; and (e) any right to terminate the Extended Option Terms early. In no event shall the Base Rent for any Option Term early; (f) any right to continue to exclude HVAC Capital Expenditures; (g) cost of security for be less than the Building; and (h) Base Rent payable by Tenant during the right to full month immediately preceding the continuation of any cap on Controllable Operating Expenses from the previous year (it being understood that the Operating Expenses Option Term. The Base Rent for the first twelve (12) months of each new Extended Term shall be the actual Operating Expenses without any cap and thereafter the cap set forth in Section 4.2(e) shall apply). Landlord and Tenant hereby acknowledge and agree that the Base Rent during each Extended initial Option Term shall be equal to ninety-five (95%) of the Base Rent component of during the “Fair Market Rental” period immediately preceding the initial Option Term, and one hundred thereafter the Base Rent shall increase by six percent (1006%) of every twenty-four (24) months during the economic concessions, including without limitation, free rent, improvement allowance, base year initial Option Term and other monetary concessions, component of the Fair Market Rental for the Premises, as determined by as follows:any subsequent Option Term.