Common use of Options to Extend Clause in Contracts

Options to Extend. 2.1 Landlord further agrees to grant to Subtenant the option to enter into a direct lease with Landlord upon termination of the Sublease in 2008 upon the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord all of the Subleased Premises. In order to exercise an Option, Subtenant shall give Landlord written notice not later than 180 days prior to the termination date of this Sublease (and of the termination of the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option for the first Option period, the Base Rent shall be the scheduled rent for the last year under Master Lease, increased by 3%, and the Base Rent shall increase by 3% each year of the Option period. If Subtenant exercises the Option for the second Option period, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. Landlord shall pay any increases in excess of 10% per year.

Options to Extend. 2.1 Landlord further agrees to grant to Subtenant Provided that Lessee is not in default of the terms, covenants and conditions of this Lease, Lessee shall have the option to enter into a direct lease with Landlord upon termination extend the Term of the Sublease in 2008 upon the following terms and conditionsthis Lease for nine (9) successive one year periods. Regardless of whether Sublandlord exercises its Lessee shall exercise each such option to renew extend the Master Term of this Lease pursuant by written notice (an "Extension Notice") to Section 6 of the Second Addendum, Subtenant's that effect sent to Lessor. To validly exercise an option to enter into a direct lease with Landlord extend, Lessee shall commence in 2008, at deliver the Extension Notice therefore to Lessor no later than thirty (30) days prior to the expiration of the initial term Term or subsequent extension. Term of the Master Lease, as defined in the Second Addendumapplicable. Sublandlord's right If an option to renew the Master extend is properly and timely exercised, this Lease shall not include continue during the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord extension period on all of the Subleased Premises. In order to exercise an Optionsame covenants, Subtenant shall give Landlord written notice not later than 180 days prior to conditions, agreements, terms, limitation, exceptions and reservations as are contained in this Lease (unless changed or modified by mutual agreement), except for such of the termination date provisions of this Sublease (Lease as are pertinent only to and applicable only during the initial Term or any prior extension Term of the termination of the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option for the first Option periodthis Lease, and except that the Base Rent during the extension period shall be equal to the scheduled rent Base Rent in effect immediately preceding the extension period increased by the same percentage, if any, by which the Consumer Price Index figure for the last year under Master Leasecalendar month preceding the extension period shall have increased over the Consumer Price Index figure for the same calendar month of the preceding calendar year. "Consumer Price Index" shall refer to the Consumer Price Index:, increased All Urban Consumers, Los Angeles - Anaheim - Riverside Metropolitan Area (All Items), compiled by 3%the U.S. Department of Labor, Bureau of Labor Statistics (1982-1984 = 100). If the 1982-1984 base of the Consumer Price index should be changed, then the new base shall be converted to the 1982-1984 base and the base as so converted shall be used. In the event the Bureau shall cease to publish the Consumer Price Index:, then the successor or most nearly comparable index, shall be used. In no event shall the Base Rent shall be decreased at any time pursuant to the provisions of this paragraph notwithstanding any decrease in the Consumer Price Index. In the event an increase by 3% each year in Base Rent for an extension period is not, because of the Option period. If Subtenant exercises publishing date of the Option for applicable Consumer Price Index, determinable as of the second Option beginning of the extension period, Lessee shall continue to pay the Base Rent then in effect until the applicable increase is determined, at which time Lessee shall continue pay Lessor an amount equal to such increase multiplied by 3% per year. In addition to the number of months since the beginning of the extension period for which Lessee had not yet paid the increased Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. Landlord shall pay any increases in excess of 10% per year.

Options to Extend. 2.1 Provided no Event of Default under this Lease has ----------------- occurred and is continuing, Tenant shall have the right and option, exercisable by giving Landlord further agrees written notice at least nine (9) months prior to grant to Subtenant the option to enter into a direct lease with Landlord upon termination of the Sublease in 2008 upon the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term then current Lease Term, to extend the Lease Term for two (2) additional periods of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options five (5) years each (each, an "OptionExtended Term")) and, upon the giving of such notice, this Lease shall automatically be extended for such five (5) year periods and no further agreement of extension need be executed. In the event that Tenant fails to give such notice to Landlord as herein provided, this Lease shall automatically terminate at the rental amount described in Section 2.2 below, to lease directly from Landlord all end of the Subleased then current Lease Term and Tenant shall have no further right or option to extend this Lease. Each Extended Term shall be upon the same covenants, agreements, provisions, terms and conditions as during the original Lease Term except that the Annual Fixed Rent during each Extended Term shall equal the Fair Market Rent for the Leased Premises. In order The "Fair Market Rent" for the Leased Premises shall mean the rent for comparable space in a Class A mid-rise building in upper Bucks County for a new tenant entering into a new five (5) year lease and with the Operating Expense Allowance being adjusted to exercise an Option, Subtenant shall give Landlord written notice not later than 180 days reflect the expense allowance used in calculating the Fair Market Rent. At least twelve (12) months prior to the termination date of this Sublease (and expiration of the termination of then current Lease Term, Tenant may request Landlord to quote the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option Fair Market Rent effective for the first Option day of the Extended Term. If Tenant objects thereto, Landlord and Tenant shall negotiate for a period of thirty (30) days to determine whether the Fair Market Rent can be agreed upon. In the event Landlord and Tenant cannot agree on the Fair Market Rent within such thirty (30) day period, Landlord and Tenant shall mutually select a real estate appraiser (MAI or equal) knowledgeable of rents obtained in Class A mid-rise office buildings in upper Bucks County, Landlord shall submit to such appraiser the Base lowest Annual Fixed Rent which Landlord is willing to accept, together with any information with respect thereto that Landlord deems relevant and Tenant shall be submit to such appraiser the scheduled rent for the last year under Master Leasehighest Annual Fixed Rent which Tenant is willing to pay, increased by 3%together with any information with respect thereto that Tenant deems relevant, and the Base appraiser will then select which of Landlord's or Tenant's submissions most clearly reflect the Fair Market Rent for Class A mid-rise office buildings in upper Bucks County for new leases for a five (5) year term as aforesaid. The appraiser's decision shall increase by 3% each year be rendered within forty-five (45) days following his selection and to determine the Fair Market Rent of the Option periodLeased Premises as aforesaid. If Subtenant exercises the Option for the second Option periodSuch determination shall be final, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. binding and conclusive on Landlord shall pay any increases in excess of 10% per yearand Tenant.

Options to Extend. 2.1 Landlord further agrees to grant to Subtenant the option to enter into a direct lease with Landlord upon termination of the Sublease in 2008 upon the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant Tenant is not in monetary default hereunder beyond under any applicable notice of the terms, covenants and cure periodsconditions hereof at the time of the exercise of its option, Subtenant Tenant shall have two five-year four (4) consecutive options to extend the term of this lease for a period of eight (8) years each. Each such option shall be exercised by Tenant giving Landlord a written notice that it is exercising the same at least six (6) months prior to the date upon which this lease would otherwise terminate if such option were not exercised. In computing this six (6) month period the provisions of Article 10 shall be disregarded. Any extended term hereof, an "Option")pursuant to the exercise of said option or options, at the rental amount described in Section 2.2 below, shall be subject to lease directly from Landlord all of the Subleased Premisesterms, covenants and conditions of this lease, save and except that the rental for the applicable extended term or terms shall be the fair market rental value of the demised premises as of the time of the commencement of the applicable extended term. If the parties hereto shall be unable to agree as to the fair market rental value for the extended term or terms, then it shall be determined by arbitration in accordance with the rules of the American Arbitration Association then in effect and judgment upon the award may be entered in any court having jurisdiction thereof. Any improvements constructed on the demised premises by Tenant at its expense shall not be taken into consideration by determining the fair market value. In order to exercise an Option, Subtenant shall give Landlord written notice the event the monthly rental for the first extended term hereof is not later than 180 days determined prior to the termination date commencement of this Sublease (and such extended term, Tenant shall pay Landlord monthly rental at the rate payable during the immediately preceding extension until such monthly rental is determined. In the event the monthly rental as finally determined exceeds the monthly rental therefore paid by Tenant to Landlord for any such extension, rental shall be due following the determination of such monthly rental in addition to the monthly rental due for said month, an amount equal to the sum total of the termination difference between monthly rental therefore paid to Landlord by Tenant during such extended term and the actual monthly rental so determined to be due hereunder for such portion of the first Option extended term) of its intent to exercise . In the Option. If Subtenant exercises event the Option monthly rental as actually determined for the first Option periodextended term is less than that theretofore paid to Landlord by Tenant, Landlord shall remit to Tenant, following the Base Rent shall be determination of such monthly rental, an amount equal to the scheduled rent for sum total of the last year under Master Lease, increased difference between monthly rental theretofore paid to Landlord by 3%, Tenant during such extended term and the Base Rent shall increase by 3% each year actual monthly rental so determined to be due hereunder for such portion of the Option periodextended term. If Subtenant exercises However, in no event shall the Option for the second Option period, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share monthly rental during any extended period be less than One Thousand Six-Hundred and Sixty-six Dollars and Sixty-seven Cents (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. Landlord shall pay any increases in excess of 10% per year$1,666.67).

Options to Extend. 2.1 Provided no Event of Default under this Lease has occurred and is CONTINUING, TENANT shall have the right and option, exercisable by giving Landlord further agrees written notice at least nine (9) months prior to grant to Subtenant the option to enter into a direct lease with Landlord upon termination of the Sublease in 2008 upon the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term Term, to to extend the Lease Term for one (1) additional period of four (4) years (the "Extended Term") and, upon the giving of such notice, this Lease shall automatically be extended for such four (4) year period and no further agreement of extension need be executed. In the even that Tenant fails to give such notice to Landlord as herein provided, this Lease shall automatically terminate at the end of the Master then current Lease Term and Tenant shall have no further right or option to extend this Lease. The Extended Term shall be upon the same covenants, agreements, provisions, terms and conditions as defined during the original Lease Term except that the Annual Fixed Rent during the Extended Term shall equal the Fair Market Rent for the Leased Premises, but not less than the aggregate rent paid during the last year of the initial Term. The "Fair Market Rent" for the Leased Premises shall mean the rent for comparable space in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter a Class A mid-rise building in lower Bucks County for a new tenant entering into a direct new four (4) year lease and with Landlord for the Subleased PremisesOperating Expense Allowance being adjusted to reflect the expense allowance used in calculating the Fair Market Rent. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options At least nine (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord all of the Subleased Premises. In order to exercise an Option, Subtenant shall give Landlord written notice not later than 180 days 9) months prior to the termination date of this Sublease (and expiration of the termination of then current Lease Term, Tenant may request Landlord to quote the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option Fair Market Rent effective for the first Option day of the Extended Term. If Tenant objects thereto, Landlord and Tenant shall negotiate for a period of thirty (30) days to determine whether the Fair Market Rent can be agreed upon. In the event Landlord and Tenant cannot agree on the Fair Market Rent within such thirty (30) day period, Landlord and Tenant shall mutually select a real estate appraiser (MAI or equal) knowledgeable of rents obtained in Class A mid-rise office buildings in lower Bucks County, Landlord shall submit to such appraiser the Base lowest Annual Fixed Rent which Landlord is willing to accept, together with any information with respect thereto that Landlord deems relevant and Tenant shall be submit to such appraiser the scheduled rent for the last year under Master Leasehighest Annual Fixed Rent which Tenant is wining to pay, increased by 3%together with any information with respect thereto that Tenant deems relevant, and the Base appraiser will then select which of Landlord's or Tenant's submissions most clearly reflect the Fair Market Rent for Class A mid-rise office buildings in lower Bucks County for new leases for a four (4) year term as aforesaid. The appraiser's decision shall increase by 3% each year be rendered within forty-five (45) days following his selection and to determine the Fair market rent of the Option periodleased premises as aforesaid. If Subtenant exercises the Option for the second Option periodSuch determination shall be final, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. binding and or conclusive on Landlord shall pay any increases in excess of 10% per yearand Tenant.

Options to Extend. 2.1 Landlord further agrees Provided that Tenant is not then in default under the terms of this Lease, Tenant shall have two (2) successive options to grant extend the term hereof, each extension to Subtenant the option be for a period of five (5) years. Each of said options shall be exercised by written notice to enter into a direct lease with Landlord upon termination of the Sublease in 2008 upon the following terms and conditions. Regardless of whether Sublandlord exercises its option Landlord, delivered not less than six (6) months prior to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of said term. Each of the option periods shall be on the same terms and conditions contained herein except that the initial term Guaranteed Minimum Monthly Rental during the initial option period shall be an amount determined by multiplying the Guaranteed Minimum Monthly Rental in effect upon the commencement of the Master initial lease term by a fraction (i) which fraction shall have as its numerator the Consumer Price Index in effect for the month preceding the commencement of the option period and (ii) which fraction shall have as its denominator the Consumer Price Index in effect for the month preceding the commencement of the initial lease term. However, in no event shall the initial Guaranteed Minimum Monthly Rental during the initial option period be less than the Guaranteed Minimum Monthly Rental in effect immediately preceding the commencement of the option period. Effective on July 1st of each year during the option periods of this Lease, the Guaranteed Minimum Monthly Rental shall be adjusted by multiplying the Guaranteed Minimum Monthly Rental then in effect by a fraction, (i) which fraction shall have as defined in its numerator the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord Consumer Price Index for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice preceding month of June and cure periods, Subtenant (ii) which fraction shall have two five-as its denominator the Consumer Price Index for the month of June for the prior year options (eachexcept during the first year of the initial option period of this Lease, an "Option"the month during which the option period commences shall be used rather than June of the prior year). However, in no event shall the rent be reduced below that Guaranteed Minimum Monthly Rental in effect immediately preceding such adjustment. The Consumer Price Index to be used is the Consumer Price Index for All Urban Consumers - All Items, for the United States, published monthly by the United States Department of Labor, in which 1967 equals 100. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new Index. EXHIBIT A EXHIBIT “B” Landlord shall provide Tenant with a “shell building” consisting only of: exterior walls, not including the storefront (masonry and/or stud walls not including paint, drywall or insulation), foundations (not including concrete floor slab), roof, rear door at the rental amount described in Section 2.2 below, location to lease directly from Landlord all of the Subleased Premises. In order to exercise an Option, Subtenant shall give Landlord written notice not later than 180 days prior to the termination date of this Sublease (and of the termination of the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option for the first Option period, the Base Rent shall be the scheduled rent for the last year under Master Lease, increased approved by 3%Landlord, and the Base Rent following utilities: one (1) 200-amp service to be located in a separate electrical room and primary electrical conduits (without cable) to Tenant’s space; one (1) four inch (4”) sewer lateral stubbed to Tenant’s space, and one (1) one and one-half inch (1.5”) water service lateral (not including water meter or related fees). All utilities will be stubbed and capped to the demised premises. Tenant shall increase be responsible for furnishing and installing all secondary electrical conduit and/or wiring from the point of connection of Landlord’s work to the actual Tenant electrical panel. Tenant shall be responsible for all fees, permits, or utilities charges necessitated by 3% each year Tenant’s use of the Option periodPremises. If Subtenant exercises the Option for the second Option period, the Base Rent shall continue Tenant agrees to increase complete and fixturize said Premises in accordance with plans and specifications to be prepared by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per yearTenant and approved by Landlord. Landlord shall pay any increases in excess to Tenant the sum of THIRTY THOUSAND DOLLARS ($30,000.00) as Landlord’s contribution to the cost of Tenant’s improve­ments, which sum shall be paid within ten (10% per year) days following the commencement of the term hereof.

Options to Extend. 2.1 Landlord further agrees to grant to Subtenant Provided that Tenant is not then in default either at the time Tenant delivers the written notice required by this section or at the time of commencement of an extension term, Tenant shall have the option to enter into a direct lease with Landlord upon termination extend the term of this Lease for up to fifteen years in three separate and additional terms of five years each (provided that Tenant may, if it chooses, combine the Sublease in 2008 upon first two extension options and extend the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord all ten years upon delivery of the Subleased Premises. In order to exercise an Option, Subtenant shall give Landlord written notice not later than 180 days prior to requisite notice) under the termination date of same terms and conditions as set forth in this Sublease (and of the termination of the first Option term) of its intent to exercise the Option. If Subtenant exercises the Option for the first Option period, Lease except that the Base Rent shall be adjusted as hereafter provided. Tenant shall exercise any of its options to extend this Lease by delivering written notice of such exercise to Landlord at least one year prior to the scheduled rent expiration of the original or extended term of the Lease, as the case may be. The Base Rent for the last year under Master Lease, increased by 3%, and the Base Rent shall increase by 3% each first year of each extension term shall be 95% of the Option period. If Subtenant exercises the Option for the second Option period, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share Fair Market Rental (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998as hereafter determined); provided, however, that Subtenant in no event shall not the Base Rent for the Premises for the first year of each extension term be obligated to pay increases that exceed a 10less than 100% of the average per rentable square foot of the Base Component of the Base Rent for the entire Premises during the immediately preceding year nor more than 102.5% of the average per rentable square foot of the Base Component of the Base Rent for the entire Premises during the immediately preceding year. Thereafter, the Base Rent for the Premises for each year of the extension term shall increase by 2 1/2% per year. For each five year extension exercised by Tenant, Tenant shall receive a Tenant improvement allowance of $2.00 per rentable square foot of the Premises, which allowance shall be credited against the monthly rental payments next due and payable by Tenant under the Lease until the full amount has been credited to Tenant. If Tenant elects to exercise its first option to extend the Lease for a period of ten years rather than five years, then the tenant improvement allowance to Tenant shall be $4.00 per rentable square foot rather that $2.00 per rentable square foot. For purposes of this section, Fair Market Rental shall mean the base rent for comparable space in the Project's market area. The determination of Fair Market Rental shall take into account the tenant improvement allowance offered to Tenant and all other relevant factors. If Landlord and Tenant are unable to agree on the Fair Market Rental within thirty days after Tenant's exercise of each of the options to extend, then the Fair Market Rental shall pay any increases be determined by appraisal. Landlord and Tenant shall each designate by written notice within ten days after the expiration of said thirty day period, the name of a qualified appraiser who shall have at least five years experience relative to office space in excess said market area. Each of 10% per yearthe appraisers shall submit to Landlord and Tenant within thirty days after his or her appointment, a written determination of the Fair Market Rental for the applicable option period. If both of the appraisers' determinations are within the minimum and maximum Base Rent amounts previously set forth in this section, then the Fair Market Rental shall be the average of the two appraisals. If only one of the appraiser's determinations is within such minimum and maximum Base Rent amounts, then the Fair Market Rental shall be equal to such determination. If neither appraiser's determinations is within the minimum and maximum Base Rent amounts, then the Fair Market Rental shall be the average of such minimum and maximum Base Rent amounts.

Options to Extend. 2.1 Landlord further agrees to grant to Subtenant the option to enter into a direct lease with Landlord upon termination Paragraph X of the Sublease in 2008 upon Lease is amended to read as follows: Landlord hereby grants to Tenant three (3) five (5)-year options to extend the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant On condition that Tenant is not then in monetary default hereunder under any of the terms and conditions of the Lease beyond any applicable notice and cure periods, Subtenant shall have two five-year options (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord all Tenant may exercise each of the Subleased Premises. In order options to exercise an Option, Subtenant shall give extend by giving Landlord at least one hundred eighty (180) days prior written notice of its exercise of the applicable option to extend. All of the terms and conditions of this Lease shall be in effect during each of the extended terms, except that the annual rental to be paid by Tenant during the first year of the applicable extended term shall be adjusted to equal the fair market rental value of the Premises as of the first day of such extended term, as Landlord and Tenant shall agree as provided in the following paragraph. If Tenant has timely exercised its option to extend as set forth above, Landlord shall promptly give Tenant notice of Landlord's opinion of the fair market rental value (as defined below) applicable to the Premises during the first year of the extended term. Thereafter, Landlord and Tenant shall attempt to agree in good faith in writing on such fair market rental value. If Landlord and Tenant do not later than 180 agree in good faith on the fair market rental value of the Premises by the date which is one hundred twenty (120) days prior to the termination date of this Sublease (and end of the termination original term, or current renewal term, as applicable, then Landlord and Tenant shall each select, within fifteen (15) days after such one hundred twentieth (120th) day, an appraiser (the "Appraisers") with a minimum of five (5) years experience appraising real property for commercial rental purposes in the Reno, Nevada area, to determine the fair market rental value of the first Option termPremises. Within fifteen (15) days of its intent to exercise the Option. If Subtenant exercises the Option for the first Option periodappointment, the Base Rent Appraisers shall be mutually select a third appraiser (the scheduled rent for "Neutral Appraiser") who has the last year under Master Lease, increased by 3%, same minimum qualifications as the Appraisers and the Base Rent shall increase by 3% each year of the Option period. If Subtenant exercises the Option for the second Option period, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant shall not be obligated to pay increases that exceed a 10% increase per year. Landlord shall pay any increases in excess of 10% per year.who has not

Options to Extend. 2.1 Landlord further agrees Tenant shall have the right (each an “Extension Option”) to grant to Subtenant extend the option to enter into a direct lease with Landlord upon termination Lease Term for two (2) consecutive periods of the Sublease in 2008 upon five (5) years (each an “Extension Period”) on the following terms and conditions. Regardless of whether Sublandlord exercises its option to renew the Master Lease pursuant to Section 6 of the Second Addendum, Subtenant's option to enter into a direct lease with Landlord shall commence in 2008, at the expiration of the initial term of the Master Lease, as defined in the Second Addendum. Sublandlord's right to renew the Master Lease shall not include the Subleased Premises if Subtenant elects to enter into a direct lease with Landlord for the Subleased Premises. Provided Subtenant is not in monetary default hereunder beyond any applicable notice and cure periods, Subtenant shall have two five-year options (each, an "Option"), at the rental amount described in Section 2.2 below, to lease directly from Landlord all of the Subleased Premises. In order If Tenant wishes to exercise an Option, Subtenant Extension Option it shall give Landlord written notice not (the “Election Notice”) no later than 180 days twelve (12) months prior to the termination date of this Sublease (and commencement of the termination Extension Period. Time is of the first Option termessence and late notice shall not be effective. The Election Notice shall be irrevocable. Notwithstanding the foregoing, if either (a) an Event of its intent Default is outstanding when Tenant delivers the Election Notice or at the time the Extension Period is to exercise commence, or (b) within the Optionimmediately preceding twelve (12) months Landlord gave Tenant more than one (1) notice of an alleged default which ripened into an actual Event of Default, then Landlord shall not be required to give effect to Tenant’s Election Notice. If Subtenant exercises the above conditions are satisfied with respect to the exercise of the Extension Option or if Landlord elects in its discretion to recognize the Election Notice even though the conditions are not satisfied, then the Lease Term shall be extended on the same legal terms and conditions contained in this Lease except that Base Rent for the first Option period, the Base Rent Extension Period shall be the scheduled rent for the last year under Master Lease, increased by 3%, determined as provided below and the Base Rent applicable Extension Option shall increase by 3% each year be of the Option periodno further force and effect. If Subtenant exercises the Option for the second Option period, the Base Rent shall continue to increase by 3% per year. In addition to Base Rent, Subtenant shall pay its proportionate share (27.70%) of annual increases in Property Taxes for the Subleased Premises, over a base year of 1998; provided, however, that Subtenant Landlord shall not be obligated to provide any concessions or allowances to Tenant or to pay increases that exceed a 10% increase per yearany fee or commission to the brokers identified in the Lease Summary if Tenant exercises an Extension Option (except as may otherwise have been agreed to by Landlord pursuant to any separate fully executed agreement between Landlord and said brokers). Tenant may not exercise the second Extension Option unless the first Extension Option was validly exercised. If Tenant exercises an Extension Option, Base Rent for the Extension Period shall be the Market Rent for the Premises during the Extension Period determined pursuant to Paragraph 4 below. Landlord shall pay and Tenant shall, upon request of either party after the determination of the Market Rent, execute an amendment to this Lease, to document the extension and the Market Rent applicable to the Extension Period. The Extension Options are personal to the Tenant originally named herein and any increases in excess Permitted Transferee who has assumed all of 10% per yearTenant’s obligations under this Lease and may not be exercised by or for the benefit of any other party.