$1,880,000 Uses in Landlord's Costs Related to Seismic Work Clause

Landlord's Costs Related to Seismic Work from Amendment to Lease Agreement

THIS SECOND AMENDMENT TO LEASE AGREEMENT (this "Amendment") is made and entered into as of May 6, 2014, by and among DAGMAR DOLBY, AS TRUSTEE OF THE DOLBY FAMILY TRUST DATED MAY 7, 1999, DAGMAR DOLBY, AS TRUSTEE OF THE RAY DOLBY 2002 TRUST A DATED APRIL 19, 2002, and DAGMAR DOLBY, AS TRUSTEE OF THE RAY DOLBY 2002 TRUST B DATED APRIL 19, 2002 (collectively, "Landlord"), and DOLBY LABORATORIES, INC., a California corporation ("Tenant").

Landlord's Costs Related to Seismic Work. Provided that Tenant hires MBCSE as the structural engineer for the design of the Seismic Work, (A) Landlord shall pay, in addition to the Seismic Allowance, all design costs associated with the Seismic Work incurred by MBCSE, and (B) in the event the actual hard construction costs vary from the amount of the Seismic Allowance set forth in Section 8(c)(i) above (i.e., $1,880,000), the amount of the Seismic Allowance shall be adjusted to equal the amount of such actual hard construction costs; provided, however, that the amount of the Seismic Allowance shall not be increased due to (and Tenant shall pay for) any costs increases resulting from: (i) any increased scope in the Seismic Work beyond that contemplated in the MBCSE Structural Schematic Design, dated February 26, 2014 to the extent such increased scope is requested by Tenant (and not related to any compliance with Law or deficiency in the MBCSE design as raised by SFDBI or any other governmental authority reviewing the Seismic Work in the course of review of the plans and specifications for the Seismic Work by SFDBI or such other governmental agency), or (ii) Tenant's failure to commence construction of the Seismic Work by March 1, 2015 or to diligently complete the Seismic Work thereafter.