Common use of Option to Extend Term Clause in Contracts

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term ("Option to Extend") for an additional period of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior to the expiration of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend the

Option to Extend Term. Notwithstanding anything Lessee is given the option to extend the contrary term --------------------- on all the provisions contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to except for monthly rent, for a five (5) year period ("extended term") following the terms of Paragraph 39 expiration of the Leaseinitial term, Lessor hereby grants Lessee a one time by giving written notice of exercise of the option to extend the Term ("Option to Extendoption notice") to Lessor at least 180 days but not more than 365 days before the expiration of the term. Provided that, if Lessee is in default on the date of giving the option notice, the option notice shall be totally ineffective, or if Lessee is in default on the date the extended term is to commence, the extended term shall not commence and this lease shall expire at the end of the initial term. The monthly rent for the first year of the extended term shall be the then prevailing market rent of comparable premises within close proximity of the Premises ("Extended Term Rent") and shall be agreed xxxx.xx the parties. The parties shall have thirty (30) days after Lessor receives the option notice in which to agree on the Extended Term Rent. If the parties agree on the Extended Term Rent during that period, they shall immediately execute an additional amendment to this lease stating the Extended Term Rent. In no case shall the monthly rent be less than the monthly rent for month 60 of the Lease as provided in paragraph 50 herein. If the parties are unable to agree on the Extended Term Rent within the period specified herein, then within ten (10) days after the expiration of that period the parties shall appoint a mutually acceptable real estate appraiser or broker with at least five (5) years full time commercial real estate experience in the area in which the Premises are located to appraise and set the Extended Term Rent. Any associated costs will be split equally between the parties. If the parties cannot agree on the appointment of a mutually acceptable real estate appraiser or broker within the time period specified, then each party shall have ten ("Option Period")10) days to select a real estate appraiser or broker of its choice to establish the Extended Term Rent within thirty (30)-days of his or her selection. Such right shall apply only to Lessee's entire Premises, Each party shall be responsible for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior payment of compensation to the expiration appraiser or broker chosen by that party. If for any reason either one of the initial Termappraisals is not completed within thirty (30) days, as provided herein, then the appraisal that is completed at that time shall establish the Extended Term Rent. If Lessee exercises its Option to Extend both appraisals are completed and the Term, Lessee shall continue to lease two appraisers /brokers cannot agree on the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate monthly rent for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings extended term, then they shall select a third mutually acceptable appraiser or broker to establish a third Extended Term Rent within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise noticehis or her selection. Lessee The average of the two appraisals closest in value shall have twenty (20) days then become the Extended Term Rent. The costs of the third appraisal shall be split equally between the parties. The monthly rent for the extended term shall be subject to adjustment at the commencement of the second year of the extended term and each year thereafter ("Lessee's Review Periodthe adjustment date") after receipt as follows: the base for computing the adjustment is the Consumer Price Index for All Urban Consumers for San Xxxxxxx co-Oakland-San Xxxx published by the U.S. Department of Lessor's notice Labor, Bureau of Labor Statistics ("Index") which is in effect on the date the extended term commences ("Beginning Index"). The Index published two months prior to the adjustment date in question ("Extension Index") is to be used in determining the amount of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writingadjustment. If Lessee objects the Extension Index has increased over the Beginning Index, the monthly rent for the following year shall be set by multiplying the monthly rent for the previous year by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning Index. In no case shall the monthly rent be less than the monthly rent in effect immediately prior to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend theadjustment date then occurring.

Option to Extend Term. Notwithstanding anything to the contrary contained Provided that Tenant is not in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 Default as of the Leasetime of exercise of this option and the commencement date of the First Option Period, Lessor hereby grants Lessee and provided that as of such date there is no act or omission of Tenant that would become a one Default with the passage of time or the giving of notice, Tenant shall have an option ("First Extension Option") to extend the Term of the Lease for the Premises in "as is" condition at the expiration of the original Lease Term for a period ending on September 30, 2005 ("Option to Extend") for an additional period of five (5) years ("First Option Period"). Such right All of the terms and conditions of this Lease except for Base Rent and the provisions of this Paragraph shall apply only be applicable to Lessee's entire the First Option Period. Provided that Tenant is not in Default as of the time of exercise of this option and the commencement date of the Section Option Period, that as of said date there is no act or omission of Tenant that would become a Default with the passage of time or the giving of notice, and that Tenant has duly exercised the First Extension Option, Tenant shall have a second option ("Second Extension Option") to extend the Term of the Lease for the Premises in "as is" condition at the expiration of the First Option Period for a period ending on the last day of the 120th full calendar month following the original Term Commencement Date ("Second Option Period"). All of the terms and conditions of this Lease except for Base Rent and the provisions of this Paragraph shall be applicable to the Second Option Period. The Base Rent for the Premises under each option shall be the then current market rent for comparable facilities in the proximate South San Francisco market area. The definition of comparable facilities shall incorporate the parking amenities of the Premises, and the Building's location, age, quality, amenities, identity, exterior appearance, interior improvements, and type of construction, excluding laboratory and manufacturing improvements paid for by Tenant. Tenant shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving give Landlord written notice of its intent to Lessor exercise its option at lease nine least twelve (912) but nor more than eighteen (18) months prior to the expiration of the initial Termthen current Term for the Premises. Within fifteen (15) days after Tenant exercises its option to extend, Landlord shall provide Tenant with the Base Rent, as determined by Landlord, for the Option Period. The parties are obligated to negotiate in good faith to agree on the Base Rent. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that parties have not mutually agreed on the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt from notification by Landlord to Tenant of LesseeLandlord's exercise noticedetermination of Base Rent, each party hereto shall appoint one representative who shall be a licensed real estate broker experienced in the leasing of comparable facilities in the County of San Mateo to act as an arbitrator. Lessee The two (2) arbitrators so appointed shall determine the Base Rent for the relevant Option Period. The determination of said Base Rent shall be made by said two (2) arbitrators within sixty (60) days from notification by Landlord to Tenant of Landlord's determination of Base Rent and they shall submit said determination in writing and signed by said arbitrators in duplicate. One of the written notifications shall be delivered to Landlord and the other to Tenant. In the event the two (2) arbitrators of the parties hereto cannot agree on the Base Rent for the Premises herein, said two (2) arbitrators shall appoint a third arbitrator who shall be a licensed real estate broker experienced in the leasing of comparable facilities in the County of San Mateo, to act as an arbitrator. The Base Rent for the relevant Option Period shall be independently determined by the third of said arbitrators, which said determination shall be made within ninety (90) days from notification by Landlord to Tenant of Landlord's determination of Base Rent. The role of the third arbitrator shall then be to immediately select from the proposed resolution of arbitrators #1 and #2 the one that most closely approximates the third arbitrator's determination of Base Rent. The third arbitrator shall have twenty no right to adopt a compromise or middle ground or any modification of either of the two final proposed resolutions. The resolution that the third arbitrator chooses as most closely approximating his determination of the Base Rent shall constitute the decision of all arbitrators and shall be final and binding upon the parties. The parties hereto shall pay the charges of the arbitrator appointed by it and any expenses incurred by such arbitrator. The charges and expenses of the third arbitrator, as provided herein, shall be paid by the parties hereto in equal shares. In the event either arbitrator #1 or arbitrator #2 fails to present a Base Rent figure within the thirty (2030) days day period, the Base Rent presented by the other arbitrator shall be considered final and binding on both parties. Notwithstanding anything to the contrary herein contained, Tenaxx'x xight to extend the term by exercise of the foregoing Option shall be conditioned upon the following: ("Lessee's Review Period"i) after receipt at the time of Lessor's the exercise of the Option, and at the time of the commencement of the extended term, Tenant shall be in possession of and occupying the Premises for the conduct of its business therein and the same shall not be occupied by any assignee, subtenant or licensee, and (ii) the notice of exercise shall constitute a representation and promise by Tenant to Landlord effective as of the fair market rental rate within which date of the exercise and as of the date of commencement of the extended term, that Tenant shall not assign the lease in whole or in part, or sublet all of any portion of the Premises, the election to accept such fair market rental rate or to reasonable object thereto extend the term being for purposes of utilizing the Premises for Tenant's purposes in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise conduct of its Option to Extend theTenaxx'x xusiness therein.

Option to Extend Term. Notwithstanding anything to Tenant shall have the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term of this Lease for three ("Option to Extend"3) for an separate and additional period periods of five (5) years ("Option Period")each. Such right shall apply only to Lessee's entire Premises, Each such option shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised exercisable by Lessee by giving written notice from Tenant to Lessor Landlord at lease nine least six (96) months prior to the expiration of the initial Termthen expiring term. If Lessee exercises its Option to Extend Base Rent for the Term, Lessee shall continue to lease the Leased Premises for such extended each extension period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the Prevailing Market Rate which shall mean the prevailing fair market annual rental rate for per square foot of rentable area in comparable office buildings in the Premises based upon property's market area. The determination of Prevailing Market Rate shall take into consideration the prevailing fair market rental rate for similar space in similar industrial buildings lack of tenant improvements, no rent concessions, and all other relevant factors. If the Landlord and Tenant are unable to agree on a Prevailing Market Rate within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lesseeafter Tenant's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which option to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessorextend, Lessor Tenant may cancel and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel rescind its exercise of its the option. If the Tenant does not rescind them, the Prevailing Market Rate shall be determined by appraisal. Landlord and Tenant shall each designate by written notice within ten (10) days after the expiration of said thirty (30) day period, the name of a qualified appraiser who shall have at least five (5) years experience relevant to office space in the market area. Each of the appraisers shall submit to Landlord and Tenant within thirty (30) days after his or her appointment, a written determination of the Prevailing Market Rate for the applicable option period. If the lower of the two appraisers' determinations is not less than 95% of the other determination, then the average of the two determinations shall be deemed to be the then Prevailing Market Rate. If such is not the case, then the two appraisers shall mutually select a third qualified and impartial appraiser who shall have had at least five (5) years experience relevant to office space in the market area. Such third appraiser shall issue a determination of said Prevailing Market Rate within thirty (30) days of his or her appointment. The Prevailing Market Rate shall be the average of the two determinations which are closest. Minimum Rent shall then be calculated at the rate of 95% of such Prevailing Market Rate. In no case shall the rate for any Option to Extend thePeriod be less than the previous year's rate.

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph In accordance with paragraph 39 of this lease and Lessee is in possession of the LeasePremises, Lessor hereby grants Lessee a one time option shall have two (2) five (5) year options to extend the Term term of this lease at a rental rate which shall be ninety-five (95%) percent of the prevailing market rental rate for similar office / industrial space. Lessee must give notice, in writing, to Lessor one hundred eighty (180) days prior to expiration of the original lease term of this lease in order to exercise said option(s). If Lessor and Lessee are not able to reach a written agreement on the rent of this extension within thirty (30) days, of Lxxxxx's exercise of notice then the prevailing "Option fair market rental rate" shall be determined by appraisers appointed as hereinafter set forth, based on comparable rentals for similar office / industrial space, for non-renewing non- encumbered tenants then charged and collected in North San Diego County taking into account items that professional real estate appraisers customarily consider including location, credit of the tenants of other properties, size, age, design, utility and other relevant factors of other properties in the area as they compare to Extendthe subject premises. The option(s) to extend is personal to Lessee and may not be exercised or assigned voluntarily or involuntarily by or to any person or entity other than Lessee, except to an assignee not requiring Lxxxxx's consent as provided in the section above. The option(s) hereby granted to Lxxxxx is not assignable separate and apart from this lease, as provided in paragraph 39 above. The rent thereafter shall be adjusted in accordance with paragraph 39.6 of the lease (Cost of Living Adjustment [for options]). Any required appraisal in regard to "fair market rental value" shall be made as follows: If Lessor and Lessee are unable to come to written agreement in regard to the rent for each option period within thirty (30) for days of the exercised date, then Lessor and Lessee shall each appoint in writing an additional period independent qualified real estate appraiser, who shall be a member of the American Institute of Real Estate Appraisers or equivalent, with at least five (5) years experience appraising industrial property. Each of these two ("Option Period")2) appraisers shall prepare a written determination of Fair Market Rental Value within thirty (30) days. Such right shall apply only If the two (2) appraisals are within five (5%) percent, with respect to Lessee's entire Premises, the annual base rent then the average shall be for a term that calculated and the value thus determined shall begin immediately following Lessee's initial Term and shall conclusively be exercised by Lessee by giving written notice deemed to Lessor at lease nine (9) months prior to the expiration of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate value of the leased premises for the Premisespurposes of this paragraph and shall accrue from the first (1st) day of the extended term thereof. However, if the two (2) appraisals are not later than thirty within (305%) days following receipt percent then upon mutual agreement, Lessor and Lessee shall instruct each of Lessee's exercise noticetheir appraisers to appoint a third appraiser with qualifications as outlined above within ten (10) days. Lessee Such independent third appraiser shall have twenty (20) days (to make his own determination of "Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within value" which shall then conclusively be deemed to accept such be the "fair market rental rate or to reasonable object thereto in writingvalue" of the lease premises for the purposes of this paragraph and shall accrue from the first (1st) day of the extended term hereof. Each party shall pay for the cost of its appointed appraiser and one-half (1/2) of the of the third (3rd) appraiser. If Lessee objects either Lxxxxx and Lxxxxx fails to appoint an appraiser, then the appraiser appointed by the party appointing an appraiser shall make the required appraisal acting alone and the decision of such appraiser as to "fair market rental rate submitted by Lessor, value" of the premises shall be conclusive and binding upon Lessor and Lessee. In no event shall, delay in the determination of the "fair market ----------------------------------------------------------------------------- ADDENDUM TO AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAL / COMMERCIAL SINGLE-TENANT LEASE - NET DATED DECEMBER 19, 1998 BY AND BETWEEN MITSUI FUDOSAN (USA), INC., A CALIFORNIA CORPORATION, AS LESSOR, AND PACIFIC RESEARCH AND ENGINEERING CORPORATION, A CALIFORNIA CORPORATION, AS LESSEE =============================================================================== value" of the premises effect Lxxxxx's obligation to pay the amount of rent as is then in force, or the amount of increase, if any, immediately upon receipt of notification of same. Lessee shall attempt in good faith have the option to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel withdraw its exercise of the option to extend within five (5) days after final determination of fair market value by written notice to Lessor, in which event the Lease shall expire at the end of the current term and Lxxxxx shall reimburse Lessor for its Option to Extend theshare of the appraisals (if any).

Option to Extend Term. Notwithstanding anything Provided that an Event of Default is not then continuing, Tenant shall have the right and option ("Extension Option") to extend the contrary contained in Paragraphs 1.3Term for two (2) additional periods of five (5) years each (each an "Extension Term"), 3.1 or elsewhere exercisable in the Leasefollowing manner. If Tenant is desirous of exercising an Extension Option under this Section 28, subject to the terms of Paragraph 39 Tenant shall give Landlord prior written notice, at least ten (10), but no more than fifteen (15) months in advance of the Leasenext scheduled Expiration Date, Lessor hereby grants Lessee a one time option of Tenant's intention to extend the Term ("Option to Extend") for an additional period of five (5) years ("Option PeriodTenant's Extension Notice"). Such right shall apply only to Lessee's entire Premises, shall be for a term it being agreed that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior to the expiration time is of the initial Termessence. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than Within thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of LessorTenant's notice Extension Notice, Landlord shall notify Tenant of the fair market rental rate within Landlord's determination of rent, which shall be equivalent to accept such fair market rental rate or ninety-five (95%) percent of Fair Market Rental Value (defined below) as determined pursuant to reasonable object thereto in writing. If Lessee objects this Section 28, which Landlord proposes to be applicable to the fair market rental rate submitted by LessorExtension Term ("Landlord's Extension Rent Notice"). Landlord shall include with Landlord's Extension Rent Notice data in support of Landlord's determination of Fair Market Rental Value. Within ten (10) days following Tenant's receipt of Landlord's Extension Rent Notice, Lessor Tenant shall notify Landlord in writing (the "Tenant Response") that Tenant either (1) accepts Landlord's determination of rent for the Extension Term ("Landlord's Determination"), or, (2) disagrees with Landlord's Determination and Lessee proposes Tenant's determination of rent for the Extension Term ("Tenant's Determination"), in which case the procedure set forth in Section 28(a)(i) shall attempt in good faith to agree upon such fair market rental rateoperate, using their best good faith effortsand Fair Market Rental Value will be determined as follows. If Lessor and Lessee fail to reach agreement on such fair market rental rate within During the fifteen (15) days following LesseeTenant's Review Period Response, Landlord and Tenant shall attempt to agree on the rent for the Extension Term, or if not successful, upon a single appraiser who (a) shall be an MAI member of the Appraisal Institute certified to perform appraisals in Pennsylvania in accordance with applicable law (b) shall have a minimum of ten (10) years experience in real estate leasing in Cxxxxxx County, Pennsylvania, or appraisal of leases in first class suburban office buildings located in the Great Valley/Malvern, Pennsylvania area and (c) has not conducted within the previous one (1) year, does not presently conduct, and does not anticipate conducting a material amount of business with either Landlord or Tenant or their affiliates, or otherwise have a financial interest in either Landlord or Tenant or their affiliates and who is otherwise independent (the "Outside Agreement DateAppraiser Qualification"). If Landlord and Tenant are unable to agree upon a single appraiser within such fifteen (15) day period, then Landlord and Tenant shall draw by lot to determine which of them (the "First Party") thenwithin the following seven (7) days shall provide the other party (the "Second Party") with the names and qualifications of three (3) appraisers who are acceptable to the First Party and who meet the Appraiser Qualifications. Such list shall be accompanied by a statement of all business conducted by each such proposed appraiser with the First Party and its affiliates within the previous one (1) year. The Second Party within seven (7) days thereafter shall select one (1) of the three (3) appraisers and shall notify the First Party in writing of its selection. The appraiser so selected shall be the appraiser hereunder for purposes of the determination of Fair Market Rent. The parties shall share equally the cost of the appraiser. During the seven (7) days following the selection of the appraiser, at LesseeLandlord and Tenant shall each prepare a written critique of the other's election delivered determination of Fair Market Rental Value, as set forth in its Determination Notice, and on the seventh (7th) day Landlord and Tenant shall deliver to Lessor each other their written critiques. On the tenth (10th) day following delivery of the critiques to each other, Landlord's and Tenant's determinations of Fair Market Rent (as originally set forth in writingtheir Determination Notices, Lessee may either cancel its with no modifications or additions whatsoever permitted), and Landlord's and Tenant's critiques shall be submitted to the appraiser. Within fifteen (15) days thereafter, the appraiser shall decide in writing whether the Landlord's or the Tenant's determination of the Fair Market Rental Value is more correct, and shall state in detail the reasons therefor. The determination so chosen shall be the Fair Market Rental Value. The appraiser shall be empowered to choose only between the Landlord's and the Tenant's determinations, and shall reach no other or compromise decision. The appraiser's decision shall be final and binding on Landlord and Tenant. Each Extension Term shall begin on the Expiration Date and thereafter the Expiration Date shall be deemed to be, following the exercise of its the first Extension Option, twelve and one-half (12-1/2)years following the Commencement Date, and following the exercise of the second Extension Option, seventeen and one-half (17-1/2) years following the Commencement Date. Upon the exercise of the first Extension Option there shall be only one option remaining, and following the exercise of the second Extension Option, or upon failure to Extend theexercise the first Extension Option, there shall be no further options to extend. The Minimum Annual Rent payable by Tenant shall be ninety-five (95%) per cent of the Fair Market Rental Value, as defined below, as of the commencement of each Extension Term; provided, however, that in no event shall the Minimum Annual Rent payable by Tenant during any lease year of any Extension Term be less than the Minimum Annual Rent payable by Tenant during the final lease year immediately preceding the current Extension Term. For the purposes of this Section 28, "Fair Market Rental Value" shall mean, as of the date in question, the then current annual rental charge, including provisions for subsequent increases and other adjustments for leases or agreements to lease then currently being negotiated, or executed in comparable space located in the Building (if applicable), Great Valley Corporate Center, Malvern, Pennsylvania, and leases or agreements to lease then currently being negotiated or executed for comparable class "A" office space located elsewhere in office buildings owned by Landlord located in the Great Valley/Malvern, Pennsylvania area, for a term commencing on or about the then scheduled Expiration Date of this Lease. In determining Fair Market Rental Value, the following factors, among others, shall be taken into account and given effect: size, location of premises, lease term, condition of Building, condition of the premises, economic concessions (including tenant improvements being performed by landlords for tenants, or tenant improvement allowances being granted by landlords to tenants), then being granted by Landlord to tenants and services provided by the Landlord. Landlord and Tenant shall enter into an amendment setting forth the Extension Term .

Option to Extend Term. Notwithstanding anything to (2.3 N) COUNTY’s Chief Real Estate Officer shall have the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term of this Lease for two ("Option to Extend"2) for an additional period of five (5) years year periods ("the “Extension Period”) beyond September 30, 2022 on the same terms and conditions of this Lease except for the base rent (the “Extension Option Period"). Such right shall apply only to Lessee's entire Premises, Base Rent”) which shall be for a term that shall begin immediately following Lessee's initial Term and shall negotiated at the time of the option as set forth below. Notification of said exercise of option must be exercised by Lessee by giving written notice to Lessor done in writing at lease nine least six (96) months prior to the Lease termination date. Subject to other provisions contained in this Lease, including Clauses 9 (PAINTING BY LESSOR) and 10 (CARPETING BY LESSOR), COUNTY shall accept the Premises during the Extension Period in its “as-is, where-is” condition. The Extension Option Base Rent shall be defined as 90% of the then Fair Market Rental Rate, defined and determined as set forth below in this Clause. Following COUNTY’s notice to LESSOR of its intent to extend the Lease for the Extension Period, COUNTY and LESSOR shall work in good faith and with commercially diligent and good faith efforts for sixty (60) days (“Initial Negotiation Period”) to come to an agreement as to the Fair Market Rental Rate. When the Parties agree that negotiations are concluded, or by the expiration of the initial Term. If Lessee exercises its Option to Extend Initial Negotiation Period, LESSOR will provide COUNTY written notification of either the Term, Lessee shall continue to lease the Premises for such extended period agreed upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate Fair Market Rental Rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their LESSOR’s last best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend theoffer ( “Last Best Offer”).

Option to Extend Term. Notwithstanding anything So long as Tenant is not in default under Article 7 beyond the applicable grace periods set forth in Article 7, Tenant may extend the Term of this Lease for two (2) extension periods of three (3) years each, (each, a "Renewal Term") by giving notice to the contrary contained Landlord of its election to extend at least six (6) months in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 advance of the Leasecommencement of the applicable Renewal Term. Except as otherwise hereinafter set forth, Lessor hereby grants Lessee a one time option all terms and conditions of this Lease shall remain in full force and effect with respect to each such Renewal Term, provided, however, that Tenant shall be entitled to no further right to extend the Term ("Option of this Lease. With respect to Extend") for an additional period of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premiseseach such Renewal Term, Fixed Rent shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice increased to Lessor at lease nine (9) months prior to the expiration of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate rent of the Premises taking into account the Landlord Improvements but not the Tenant Improvements for such period (further taking into account the Premises, fact that the base amounts applicable to the computation of Additional Rent under Section 4.2 are not later than to be modified). In the event that the parties have not mutually agreed upon said fair market rent in writing within thirty (30) days following receipt of LesseeTenant's exercise noticeof the applicable option, the same shall be determined by appraisers, one to be chosen by Landlord, one to be chosen by Tenant and a third to be selected by the two first chosen. Lessee All appraisers chosen or selected thereunder shall be independent of the parties, shall have twenty received the M.A.I. (20Member, Appraisal Institute) days designation from the American Institute of Real Estate Appraisers and shall have had at least five ("Lessee's Review Period"5) after receipt years of Lessor's notice experience in appraising commercial office space comparable to the Premises. The unanimous written decision of the fair market rental rate within which to accept such fair market rental rate two first chosen, without selection and participation of a third appraiser, or to reasonable object thereto in writingotherwise the written decision of a majority of the three appraisers chosen and selected as aforesaid, shall be conclusive and binding upon Landlord and Tenant. If Lessee objects to Landlord and Tenant shall each notify the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate other of its chosen appraiser within fifteen (15) days following Lessee's Review Period expiration of the aforesaid thirty (30) day period and, unless such two appraisers shall have reached a unanimous decision within forty-five (45) days from said expiration they shall within a further fifteen (15) days elect a third appraiser and notify Landlord and Tenant thereof. Landlord and Tenant shall each bear the "Outside Agreement Date"expense of the appraiser chosen by it and shall equally bear the expense of the third appraiser (if any). If, as contemplated by this Section, Fixed Rent with respect to any Renewal Term shall not have been determined prior to commencement of such Renewal Term, then said Renewal Term may commence, and from and after such date until the amount of such Fixed Rent is determined. Tenant shall make payments of Fixed Rent at the current rates then applicable, subject to retroactive adjustment in conformity with and within thirty (30) then, at Lessee's election delivered days of the determination of Fixed Rent pursuant to Lessor this Section. In no event shall the determination of Fixed Rent pursuant to this Section result in writing, Lessee may either cancel its exercise a reduction thereof or any modification of its Option the base amounts applicable to Extend thethe computation of Additional Rent under Section 4.2.

Option to Extend Term. Notwithstanding anything to Tenant is given the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term for a 5-year period ("Option to ExtendExtended Term") for an additional period following expiration of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premisesthe initial term, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice of exercise of the option ("Option Notice") to Lessor Landlord at lease least nine (9) months prior before the expiration of the term. Commencing on the first day of the Extended Term Tenant shall pay Landlord ninety-five percent (95%) of the fair market value of the Premises for the extended Term. The fair market value shall include but not be limited to all economic benefits to Landlord such as monthly rent, periodic rent adjustments, expense reimbursements, and all other monetary consideration, exclusive of any and all concessions being given in the market place, which constitutes a part of the fair market value of the Premises at the time of the expiration of the initial term of the Lease that is chargeable for similar use for comparable space in the geographic area of the Premises. If Tenant is in default on the date of giving the Option Notice, the Option Notice shall be totally ineffective, or if Tenant is in default on the date the Extended Term is to commence, the Extended Term shall not commence and this Lease shall expire at the end of the initial term. The parties shall have 30 days after Landlord receives the Option Notice in which to agree on fair market value during the Extended Term If the parties agree on the fair market value for the Extended Term during that period, they shall immediately execute an amendment to the Lease stating the fair market value. If the parties are unable to agree on the fair market value for the Extended Term within that period, then within 10 days after the expiration of that period each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least 5 years full-time commercial appraisal experience in the area in which the Premises are located to appraise and set the fair market value for the Extended Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease two appraisers are appointed by the Premises for such extended period upon the same terms and conditions set forth parties as stated in this Lease except that paragraph, they shall meet promptly and attempt to set the Base Rent payable by Lessee fair market value for the Extended Term. If they are unable to Lessor during agree within 30 days after the Option Period second appraiser has been appointed, they shall attempt to elect a third appraiser meeting the qualifications stated in this paragraph within 10 days after the last day the two appraisers are given to set the fair market value. Each of the parties shall bear one half of the cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, however selected, shall be at 95% a person who has not previously acted in any capacity for either party. Within 30 days after the selection of the prevailing third appraiser, a majority of the appraisers shall set the fair market rental rate value for the Extended Term. If a majority of the appraisers are unable to set the fair market value within the stipulated period of time, the three appraisals shall be added together and their total divided by three; the resulting quotient shall be the fair market value for the Premises based upon during the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the buildingExtended Term. Lessor shall provide Lessee with written notice of In setting the fair market rental rate value for the PremisesExtended Term, the appraiser or appraisers shall consider the use to which the Premises are restricted under this Lease, and shall not later consider the highest and best use for the Premises without regard to the restriction on use of the Premises contained in this Lease. If, however, the low appraisal and/or the high appraisal are/is more than thirty (30) days following receipt of Lessee's exercise notice10% lower and/or higher than the middle appraisal, the low appraisal and/or the high appraisal shall be disregarded. Lessee If only one appraisal is disregarded, the remaining two appraisals shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of be added together and their total divided by two; the resulting quotient shall be the fair market rental rate within which to accept such value for the Premises during the Extended Term. If both the low appraisal and the high appraisal are disregarded as stated in this paragraph, the middle appraisal shall be the fair marker value for the Premises during the Extended Term. After the fair market rental rate or to reasonable object thereto in writingvalue for the Extended Term has been set, the appraisers shall immediately notify the parties. If Lessee Tenant objects to the fair market rental rate submitted by Lessorvalue that has been set, Lessor and Lessee Tenant shall attempt have the right to have this Lease expire at the end of the term, provided that Tenant pays all the costs in good faith to agree upon such connection with the appraisal procedure that set the fair market rental rate, using their best good faith effortsvalue. Tenant's election to allow this Lease to expire at the end of the term must be exercised within 10 days after receipt of notice from the appraisers of the fair market value for the Extended Term. If Lessor and Lessee fail Tenant does not exercise its election within the 10-day period, the term of this Lease shall be extended as provided in this paragraph. Tenant shall have no other right to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (extend the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend theterm beyond the Extended Term.

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph In accordance with paragraph 39 of this lease and Lessee is in possession of the LeasePremises, Lessor hereby grants Lessee a one time option shall have two (2) five (5) year options to extend the Term term of this lease at a rental rate which shall be ninety-five (95%) percent of the prevailing market rental rate for similar office / industrial space. Lessee must give notice, in writing, to Lessor one hundred eighty (180) days prior to expiration of the original lease term of this lease in order to exercise said option(s). If Lessor and Lessee are not able to reach a written agreement on the rent of this extension within thirty (30) days, of Xxxxxx's exercise of notice then the prevailing "Option fair market rental rate" shall be determined by appraisers appointed as hereinafter set forth, based on comparable rentals for similar office / industrial space, for non-renewing non- encumbered tenants then charged and collected in North San Diego County taking into account items that professional real estate appraisers customarily consider including location, credit of the tenants of other properties, size, age, design, utility and other relevant factors of other properties in the area as they compare to Extendthe subject premises. The option(s) to extend is personal to Lessee and may not be exercised or assigned voluntarily or involuntarily by or to any person or entity other than Lessee, except to an assignee not requiring Xxxxxx's consent as provided in the section above. The option(s) hereby granted to Xxxxxx is not assignable separate and apart from this lease, as provided in paragraph 39 above. The rent thereafter shall be adjusted in accordance with paragraph 39.6 of the lease (Cost of Living Adjustment [for options]). Any required appraisal in regard to "fair market rental value" shall be made as follows: If Lessor and Lessee are unable to come to written agreement in regard to the rent for each option period within thirty (30) for days of the exercised date, then Lessor and Lessee shall each appoint in writing an additional period independent qualified real estate appraiser, who shall be a member of the American Institute of Real Estate Appraisers or equivalent, with at least five (5) years experience appraising industrial property. Each of these two ("Option Period")2) appraisers shall prepare a written determination of Fair Market Rental Value within thirty (30) days. Such right shall apply only If the two (2) appraisals are within five (5%) percent, with respect to Lessee's entire Premises, the annual base rent then the average shall be for a term that calculated and the value thus determined shall begin immediately following Lessee's initial Term and shall conclusively be exercised by Lessee by giving written notice deemed to Lessor at lease nine (9) months prior to the expiration of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate value of the leased premises for the Premisespurposes of this paragraph and shall accrue from the first (1st) day of the extended term thereof. However, if the two (2) appraisals are not later than thirty within (305%) days following receipt percent then upon mutual agreement, Lessor and Lessee shall instruct each of Lessee's exercise noticetheir appraisers to appoint a third appraiser with qualifications as outlined above within ten (10) days. Lessee Such independent third appraiser shall have twenty (20) days (to make his own determination of "Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within value" which shall then conclusively be deemed to accept such be the "fair market rental rate or to reasonable object thereto in writingvalue" of the lease premises for the purposes of this paragraph and shall accrue from the first (1st) day of the extended term hereof. Each party shall pay for the cost of its appointed appraiser and one-half (1/2) of the of the third (3rd) appraiser. If Lessee objects either Xxxxxx and Xxxxxx fails to appoint an appraiser, then the appraiser appointed by the party appointing an appraiser shall make the required appraisal acting alone and the decision of such appraiser as to "fair market rental rate submitted by Lessor, value" of the premises shall be conclusive and binding upon Lessor and Lessee. In no event shall, delay in the determination of the "fair market ----------------------------------------------------------------------------- ADDENDUM TO AMERICAN INDUSTRIAL REAL ESTATE ASSOCIATION STANDARD INDUSTRIAL / COMMERCIAL SINGLE-TENANT LEASE - NET DATED DECEMBER 19, 1998 BY AND BETWEEN MITSUI FUDOSAN (USA), INC., A CALIFORNIA CORPORATION, AS LESSOR, AND PACIFIC RESEARCH AND ENGINEERING CORPORATION, A CALIFORNIA CORPORATION, AS LESSEE =============================================================================== value" of the premises effect Xxxxxx's obligation to pay the amount of rent as is then in force, or the amount of increase, if any, immediately upon receipt of notification of same. Lessee shall attempt in good faith have the option to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel withdraw its exercise of the option to extend within five (5) days after final determination of fair market value by written notice to Lessor, in which event the Lease shall expire at the end of the current term and Xxxxxx shall reimburse Lessor for its Option to Extend theshare of the appraisals (if any).

Option to Extend Term. Notwithstanding anything to Provided that Tenant is not in default under the contrary contained in Paragraphs 1.3Lease after the lapse of any applicable cure periods, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a Tenant shall have one time (1) option (“Option”) to extend the Term ("Option to Extend") of the Lease for an additional period of five (5) years ("“Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9Term”) months prior to the expiration on all of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth of the Lease, except as expressly provided below in this Section 2.4. Tenant may exercise the Option by delivering written notice to Landlord of its intention to so extend the term of the Lease except that the no later than June 30, 2011. Base Rent payable by Lessee to Lessor during the Option Period Term shall be at the greater of (a) Eighty Thousand Eight Hundred Seventy Four and 67/100 ($80,874.67) per month, plus cumulative annual increases of three percent (3%) during the Option Term, or (b) ninety-five percent (95% %) of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity Market Rate (as defined below) as of the buildingdate on which Tenant exercises the Option. Lessor The “Market Rate” shall mean the terms and conditions which would be offered to a non-equity, non synthetic-lease tenant for comparable laboratory space with improvements of comparable age, appearance and quality of construction located in the Sorrento Mesa submarket of San Diego, taking into account the value of existing tenant improvements over standard tenant improvements, parking ratios, rental rates, rent concessions, operating expense base year, rent increases and equivalent location, access, visibility and signage. Comparable lease terms shall be based on five (5) year transactions with corresponding adjustments to rental rates and concessions. Landlord shall determine the Market Rate by using its good faith judgment and shall provide Lessee with written notice of the fair market rental rate for Market Rate to Tenant within fifteen (15) days after Tenant delivers notice of exercise of the Premises, not later than Option. Tenant shall have thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's “Tenant’s Review Period"”) after receipt of Lessor's Landlord’s notice of the fair market rental rate Market Rate within which to accept such fair market rental rate rent or to reasonable reasonably object thereto in writing. If Lessee objects to In the fair market rental rate submitted by Lessorevent that Tenant objects, Lessor Landlord and Lessee Tenant shall attempt in good faith to agree upon such fair market rental rate, the Market Rate using their best good faith efforts. If Lessor Landlord and Lessee fail Tenant are unable to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Tenant’s Review Period (the "“Outside Agreement Date") then”), at Lessee's election delivered then the matter shall be submitted to Lessor arbitration as provided in writing, Lessee may either cancel its exercise of its Option to Extend thethis Section 2.4 below:

Option to Extend Term. Notwithstanding anything to Provided that Tenant is not in default under the contrary contained in Paragraphs 1.3Lease after the lapse of any applicable cure periods, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a Tenant shall have one time (1) option (“Option”) to extend the Term ("Option to Extend") of the Lease for an additional period of five (5) years ("“Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9Term”) months prior to the expiration on all of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth of the Lease, except as expressly provided below in this Section 2.4. Tenant may exercise the Option by delivering written notice to Landlord of its intention to so extend the term of the Lease except that the no later than June 30, 2012. Base Rent payable by Lessee to Lessor during the Option Period Term shall be at the greater of (a) Eighty-Four Thousand Four Hundred Sixty-One and 13/100 Dollars ($84,461.13) per month, plus cumulative annual increases of three percent (3%) during the Option Term, or (b) ninety-five percent (95% %) of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity Market Rate (as defined below) as of the buildingdate on which Tenant exercises the Option. Lessor The “Market Rate” shall mean the terms and conditions which would be offered to a non-equity, non synthetic-lease tenant for comparable laboratory space with improvements of comparable age, appearance and quality of construction located in the Sorrento Mesa submarket of San Diego, taking into account the value of existing tenant improvements over standard tenant improvements, parking ratios, rental rates, rent concessions, operating expense base year, rent increases and equivalent location, access, visibility and signage. Comparable lease terms shall be based on five (5) year transactions with corresponding adjustments to rental rates and concessions. Landlord shall determine the Market Rate by using its good faith judgment and shall provide Lessee with written notice of the fair market rental rate for Market Rate to Tenant within fifteen (15) days after Tenant delivers notice of exercise of the Premises, not later than Option. Tenant shall have thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's “Tenant’s Review Period"”) after receipt of Lessor's Landlord’s notice of the fair market rental rate Market Rate within which to accept such fair market rental rate rent or to reasonable reasonably object thereto in writing. If Lessee objects to In the fair market rental rate submitted by Lessorevent that Tenant objects, Lessor Landlord and Lessee Tenant shall attempt in good faith to agree upon such fair market rental rate, the Market Rate using their best good faith efforts. If Lessor Landlord and Lessee fail Tenant are unable to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Tenant’s Review Period (the "“Outside Agreement Date") then”), at Lessee's election delivered then the matter shall be submitted to Lessor arbitration as provided in writing, Lessee may either cancel its exercise of its Option to Extend thethis Section 2.4 below:

Option to Extend Term. Notwithstanding anything to the contrary contained If Lessee is not in Paragraphs 1.3, 3.1 or elsewhere in the default under this Lease, subject to then Lessee shall have the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term on all of the provisions contained in this Lease, except for rent, for three additional five-year periods ("Extended Term") following expiration of the initial Term, by giving notice of exercise of this option ("Option to ExtendNotice") for an additional period of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine least six (96) months but no more than twelve (12) months prior to the expiration of the Term except that the number of option periods remaining to be exercised will in each case be reduced by one. Notwithstanding anything contained herein to the contrary, if Lessee is in default on the date of giving the Option Notice, the Option Notice shall be totally ineffective and shall be deemed null and void, or if Lessee is in default on the date an Extended Term is to commence, the Extended Term shall not commence and this Lease shall expire at the end of the Term then in effect. If Lessee fails to exercise any option by the required date specified above, then Lessee shall have no further options to extend the Term of the Lease. Monthly rent for each Extended Term shall be determined in the following manner: The Consumer Price Index [All Urban Consumers] (base years 1982-1984 = 100) for San Francisco-Oakland-San Xxxx CMSA, published by the United States Department of Labor, Bureau of Labor Statistics ("Index"), which is published most immediately preceding the date the Extended Term commences ("Extension Index"), shall be compared with the Index which is published most immediately preceding the date the initial Term commences ("Beginning Index"). If the Extension Index has increased over the Beginning Index, the monthly rent payable during each Extended Term shall be set by multiplying the monthly rent set forth in paragraph 4 by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning Index; provided that such increase shall not exceed three percent (3%) per annum compounded annually. As soon as the monthly rent for the Extended Term is determined, Lessor shall give notice of the amount of minimum monthly rent for the Extended Term. For subsequent extensions, rent shall be determined in the same manner by comparing the index for the current Extended Term with the index for the immediately preceding Extended Term. If Lessee exercises its Option to Extend the Index is changed so that the base year differs from that used as of the month most immediately preceding the date of Term commences, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or revised during the Term, Lessee such other government index or computation with which it is replaced shall continue be used in order to lease the Premises for such extended period upon obtain substantially the same terms and conditions set forth in this Lease except that result as would be obtained if the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, Index has not later than thirty (30) days following receipt of Lessee's exercise noticebeen discontinued or revised. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of no other right to extend the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writingTerm beyond the Extended Term.] The parties hereto have executed this Lease at San Francisco, California on July 1997. If Lessee objects to the fair market rental rate submitted by LessorLESSOR LESSEE XXXXXX HOTEL PARTNERS, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rateLLC CALIFORNIA CULINARY ACADEMY, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") thenA California limited liability company INC., at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend thea California corporation By: By: -------------------------

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere Provided that Landlord has not given Tenant notice of default more than two (2) times in the Leasetwenty four (24) months immediately preceding the exercise of this option to extend, subject to that there then exists no event of default by Tenant under this Lease nor any event that with the terms giving of Paragraph 39 notice and/or the passage of tune would constitute a default, and that Tenant occupies all of the LeasePremises, Lessor hereby grants Lessee a one time Tenant shall have the right and option to extend the Term for one ("Option to Extend"1) for an additional period of five thirty-six (536) years months, exercisable by giving Landlord prior written notice, at least twelve (12) months in advance of the Expiration Date, of Tenant's election to extend the Term; it being agreed that time is of the essence and that this option is personal to Tenant and is non-transferable to any assignee or sublessee or other party. Within fifteen (15) days after receipt of Tenant's Extension Notice, Landlord shall notify Tenant of Landlord's calculation of rent, which shall be equivalent to Fair Market Rental Value (as defined below and certified as Landlord's estimate by an officer of Landlord) as reasonably determined by Landlord, which Landlord proposes to be applicable to the Extension Term ("Option PeriodLandlord's Notice of Extension Rent Terms"). Such right Landlord shall apply only to Lesseeinclude with Landlord's entire Premises, shall be for a term that shall begin immediately following LesseeNotice of Extension Rent Terms data in support of Landlord's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior to the expiration calculation of the initial TermFair Market Rental Value. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within Within fifteen (15) days following LesseeTenant's Review Period receipt of Landlord's Notice of Extension Rent Terms, Tenant shall notify Landlord in writing (the "Outside Agreement DateTenant Response") thenthat Tenant either (1) elects to extend the Term for the Extension Term and accepts Landlord's calculation of rent for the Extension Term, at Lesseeor (2) elects to extend the Term for the Extension Term, but disagrees with Landlord's election delivered calculation of rent and elects to Lessor submit the determination of rent applicable to the Extension Term to arbitration as set forth in writingsub-section (f) below (the "Arbitration Election"). If Tenant fails to issue the Tenant's Response within the time and in the manner set forth herein, Lessee may either cancel Tenant will be deemed to have rejected Landlord's determination of Fair Market Rental Value. If Tenant exercises its exercise of its Option option to Extend theextend as set forth above, such extension shall be under the same terms and conditions as provided in this Lease except as follows:

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a Tenant shall have one time (1) option (“Option”) to extend the Term ("Option to Extend") for an additional period of by five (5) years as to the entire Premises ("Option Period"). Such right shall apply only to Lessee's and no less than the entire Premises, ) upon thefollowing terms and conditions. Any extension of the Term pursuant to the Option shall be on all the same terms and conditions as this Lease, except as follows: Base Rent at the commencement of the Option term shall equal the then-current fair market value for a term comparable office and laboratory space in the Seattle market of comparable age, quality, level of finish and proximity to amenities and public transit, and containing the systems and improvements present in the Premises as of the date that shall begin immediately following Lessee's initial Term Tenant gives Landlord written notice of Tenant’s election to exercise the Option (“FMV”), and shall be exercised further increased on each annual anniversary of the Option term commencement date by Lessee by giving written notice to Lessor at lease nine three percent (93%). Tenant may, no more than fifteen (15) months prior to the expiration date the Term is then scheduled to expire, request Landlord’s estimate of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises FMV for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the buildingterm. Lessor shall provide Lessee with written notice of the fair market rental rate for the PremisesLandlord shall, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period after receipt of such request, give Tenant a written proposal of such FMV. If Tenant subsequently gives written notice to exercise the Option, such notice shall specify whether Tenant accepts Landlord’s proposed estimate of FMV. If Tenant does not accept the FMV, then the parties shall endeavor to agree upon the FMV, taking into account all relevant factors, including (a) the size of the Premises, (b) the length of the Option term, (c) rent in comparable buildings in the relevant market, including concessions offered to new tenants, such as free rent, tenant improvement allowances, leasing commissions and moving allowances, (d) Tenant’s creditworthiness and (e) the quality and location of the Building and the Project. In the event that the parties are unable to agree upon the FMV within thirty (30) days after Tenant notifies Landlord that Tenant is exercising the Option, then either party may request that the same be determined as follows: a senior officer of a nationally recognized leasing brokerage firm with local knowledge of the Seattle laboratory/research and development leasing market (the "Outside Agreement Date"“Baseball Arbitrator”) shall be selected and paid for jointly by Landlord and Tenant. If Landlord and Tenant are unable to agree upon the Baseball Arbitrator, then the same shall be designated by the local chapter of the Judicial Arbitration and Mediation Services or any successor organization thereto (the “JAMS”). The Baseball Arbitrator selected by the parties or designated by JAMS shall (y) have at least ten (10) years’ experience in the leasing of laboratory/research and development space in the Seattle market and (z) not have been employed or retained by either Landlord or Tenant or any affiliate of either for a period of at least ten (10) years prior to appointment pursuant hereto. Each of Landlord and Tenant shall submit to the Baseball Arbitrator and to the other party its determination of the FMV. The Baseball Arbitrator shall grant to Landlord and Tenant a hearing and the right to submit evidence. The Baseball Arbitrator shall determine which of the two (2) FMV determinations more closely represents the actual FMV. The arbitrator may not select any other FMV for the Premises other than one submitted by Landlord or Tenant. The FMV selected by the Baseball Arbitrator shall be binding upon Landlord and Tenant and shall serve as the basis for determination of Base Rent payable for the Option term. If, as of the commencement date of the Option term, the amount of Base Rent payable during the Option term shall not have been determined, then, at Lessee's election delivered pending such determination, Tenant shall pay Base Rent equal to Lessor in writingthe Base Rent payable with respect to the last year of the then-current Term. After the final determination of Base Rent payable for the Option term, Lessee may either cancel its exercise the parties shall promptly execute a written amendment to this Lease specifying the amount of its Base Rent to be paid during the Option term. Any failure of the parties to Extend theexecute such amendment shall not affect the validity of the FMV determined pursuant to this Section.

Option to Extend Term. Notwithstanding anything to a. Provided that an Event of Default is not then continuing, Tenant shall have the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time right and option (“Extension Option”) to extend the Term for two ("Option to Extend"2) for an additional period periods of five (5) years each ("each an “Extension Term”), exercisable in the following manner. If Tenant is desirous of exercising an Extension Option Period"under this Section 28, Tenant shall give Landlord prior written notice, at least ten (10). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine but no more than fifteen (915) months prior to the expiration in advance of the initial Term. If Lessee exercises its Option next scheduled Expiration Date, of Tenant’s intention to Extend extend the TermTerm (“Tenant’s Extension Notice”), Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except it being agreed that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% time is of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the buildingessence. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than Within thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice Tenant’s Extension Notice, Landlord shall notify Tenant of the fair market rental rate within Landlord’s determination of rent, which shall be equivalent to accept such fair market rental rate or ninety-five (95%) percent of Fair Market Rental Value (defined below) as determined pursuant to reasonable object thereto in writing. If Lessee objects this Section 28, which Landlord proposes to be applicable to the fair market rental rate submitted by Lessor, Lessor and Lessee Extension Term (“Landlord’s Extension Rent Notice”). Landlord shall attempt include with Landlord’s Extension Rent Notice data in good faith to agree upon such fair market rental rate, using their best good faith effortssupport of Landlord’s determination of Fair Market Rental Value. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen Within ten (1510) days following Lessee's Review Period Tenant’s receipt of Landlord’s Extension Rent Notice, Tenant shall notify Landlord in writing (the "Outside Agreement Date"“Tenant Response”) thenthat Tenant either (1) accepts Landlord’s determination of rent for the Extension Term (“Landlord’s Determination”), at Lessee's election delivered to Lessor or, (2) disagrees with Landlord’s Determination and proposes Tenant’s determination of rent for the Extension Term (“Tenant’s Determination”), in writingwhich case the procedure set forth in Section 28(a)(i) shall operate, Lessee may either cancel its exercise of its Option to Extend theand Fair Market Rental Value will be determined as follows.

Option to Extend Term. Notwithstanding anything to In the contrary contained event that Tenant i) has not been and is not in Paragraphs 1.3, 3.1 or elsewhere in material default during the Term of this Lease, subject to the terms of Paragraph 39 and ii) has not assigned or sublet more than 25 percent (25%) of the LeasePremises during the last two (2) years of the Term to other than an affiliate of Tenant, Lessor Tenant is hereby grants Lessee a one time option granted the Option to extend the Term ("Option to Extend") term of this Lease for an additional period of five (5) years year term by giving Landlord written notice ("Option PeriodWritten Notice"). Such right shall apply only ) of its intention to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor do so at lease nine least seven (97) months prior to the expiration of the initial TermTerm of this Lease. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same The terms and conditions set forth as contained in this Lease shall remain in effect during this five (5) year extension term (the "Extension Term"), except that the Base Rent payable by Lessee to Lessor during shall be increased (but not decreased) as set forth below: The initial Rent for the Option Period Extension Term shall be at 95% of the prevailing then fair market rental rate for the Premises based upon (but no less than the prevailing fair market rental rate for similar space Rent payable in similar industrial buildings within the vicinity month immediately preceding the first month of the buildingExtension Term). Lessor shall provide Lessee with written notice of In the event that Tenant and Landlord do not agree on the fair market rental rate for the Premisesrental, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee then Tenant and Landlord shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which select a qualified appraiser to accept determine such fair market rental rate or rental. The cost of said appraisal shall be borne equally by Landlord and Tenant. In the event that Tenant and Landlord shall not agree on the appraiser within sixty (60) days of Tenant's Written Notice to reasonable object thereto Landlord, then the President of the San Francisco chapter of the Society of Industrial and Office Realtors shall select an independent and qualified appraiser whose decision shall be binding on the parties. Notwithstanding the foregoing, the Rent for the Extension Term shall be increased as of the 31st month of the Extension Term in writing. If Lessee objects proportion to the fair market rental rate submitted by Lessor, Lessor increase in the Consumer Price Index for the prior 30 months. The Security Deposit shall be reduced to Thirty Three Thousand and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen no/100's Dollars (15$33,000) days following Lessee's Review Period (during the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend theExtension Term.

Option to Extend Term. Notwithstanding anything If this Lease has not been previously canceled or terminated and if Tenant is not then in default under this Lease, then Tenant shall have the option to extend the contrary lease term upon the same conditions and covenants contained in Paragraphs 1.3this Lease for two (2) consecutive periods of three (3) years each (singularly "Renewal Term") except that (i) the Base Rent during any Renewal Term shall be the market Base Rent as of the commencement date of the Renewal Term in question multiplied by the rentable square footage of the Premises, 3.1 and (ii) Landlord's obligations relative to replacement of HVAC unit compressors or elsewhere in heat exchangers shall be modified such that Landlord shall be entitled to recover the Leasefull costs of any such replacements, subject to monthly during the terms of Paragraph 39 term of the Lease, Lessor hereby grants Lessee on an amortized basis, with the cost being amortized over the useful life of the replacement at an amortization rate equal to US Treasury Securities having a one time term comparable to the useful life of the replacement item. The first Renewal Term shall commence on the date the original term of this Lease expires and the second Renewal Term shall commence on the last day of the then expiring Renewal Term. Tenant shall exercise each option by giving unconditional and irrevocable written notice of exercise to extend Landlord by the Term later of ("Option to Extend"a) for an additional period of forty-five (545) years days after Landlord notifies Tenant of Landlord's determination of the market Base Rent ("Option Period"). Such right shall apply only to Lessee's entire Premises, which notice shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease given not later than nine (9) months prior to the expiration of the initial original lease term or the first Renewal Term), or (b) two hundred ten (210) days prior to the expiration of the original term of this Lease or any Renewal Term, as the case may be. If Lessee exercises its Option not timely exercised, all of Tenant's options to Extend extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in term of this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee expire and Tenant shall have twenty (20) days ("Lessee's Review Period") after receipt no further right to extend the term of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend thethis Lease.

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor Tenant is hereby grants Lessee a one time granted an option ("Extension --------------------- Option") to extend the Term for one ("Option to Extend"1) for an additional period of five (5) years Lease Years ("Option Extension Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior to the expiration of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon on the same terms and conditions set forth in effect under the Lease immediately prior to the Extension Period, except that monthly Base Rent shall be increased to that amount which is the greater of (i) the Base Rent, fully escalated, or (ii) to the Prevailing Rental Rate (defined below). The Extension Option may be exercised only by giving Landlord irrevocable and unconditional written notice thereof no earlier than three hundred sixty five (365) calendar days and no later than two hundred ten (210) calendar days prior to the commencement of the Extension Period. Notwithstanding the foregoing, said exercise shall, at Landlord's election, be null and void if: (i) Tenant is in default under the Lease at the date of said notice and said default remained uncured following expiration of all applicable cure periods; or (ii) prior to commencement of the Extension Period, Tenant commits an Event of Default which remained uncured after expiration of all applicable cure periods. If Tenant shall fail to timely exercise the Extension Option herein provided, or if Tenant shall assign this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% or sublet any part in excess of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30%) days percent of the Premises or all of the Premises (whether or not Landlord consents to said assignment or sublease), or if Tenant shall commit an Event of Default under this Lease which remains uncured following receipt expiration of Lesseeall applicable cure periods, said Extension Option shall , at Landlord's election to be made by written notice to Tenant, terminate, and shall be null and void and of no further force and effect. Tenant's exercise noticeof the Extension Option shall not operate to cure any default by Tenant of any of the terms or provisions in the Lease, nor to extinguish or impair any rights or remedies of Landlord arising by virtue of such default. Lessee If the Lease or Tenant's right to possession of the Premises shall terminate in any manner whatsoever before Tenant shall exercise the Extension Option herein provided, or if Tenant shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice subleased or assigned all or any portion of the fair market rental rate within which Premises to accept such fair market rental rate any person or to reasonable object thereto entity other than an Affiliate (as that term is defined in writing. If Lessee objects to the fair market rental rate submitted by LessorSection 14.1 below), Lessor and Lessee shall attempt in good faith to agree then immediately upon such fair market rental ratetermination, using their best good faith effortssublease or assignment, the Extension Option herein granted shall simultaneously terminate and become null and void. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its The Extension Option to Extend theis personal

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor Landlord hereby grants Lessee a one time to Tenant the option to extend the Term term under all the provisions contained in this lease, except for the monthly rent, for one five year period ("Option to ExtendExtended Term") for an additional period of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months prior to the expiration of the initial term set forth in paragraph 2 ("Initial Term"). The monthly rent for the Extended Term shall be marked rent as determined below, to be increased at the rate of 6% to 8% (as determined below) over the previous year's monthly rent on each one year anniversary date during the Extended Term, provided that in no event shall the monthly rent at the commencement of the Extended Term be less than the monthly rent in effect at the expiration of the Initial Term. Tenant must give written notice to Landlord of its intention to exercise this option at least six (6) months before the expiration of the Initial Term. The parties shall have forty-five (45) days after Landlord receives the notice of exercise in which to negotiate and agree on the market rent (and the precise annual adjustment percentage within the range of 6% to 8%) for the Extended Term. If Lessee exercises its Option the parties are unable to Extend agree on the Termmarket rent and such annual adjustment percentage within this forty-five (45) day negotiating period, Lessee the market rent and such annual adjustment percentage shall continue to lease be determined in the following manner: (i) Landlord and Tenant shall each select a licensed real estate broker with not less than five years' experience in the business of commercial leasing of property of the same type and use as the Premises for and in the same geographical vicinity, (ii) such extended period two real estate brokers shall select a third similarly qualified broker, and the three brokers so selected shall determine the market rent, (iii) the decision of the majority of said brokers shall be final and binding upon the same terms parties hereto, and conditions set forth (iv) the brokers shall base their determination of the market rent on the monthly rent (and the annual adjustment percentage) obtained for property of comparable location, type and use as the Premises with leases of comparable terms. Each party shall pay the expenses and charges of the broker appointed by it and the parties shall pay the expenses and charges of the third broker in equal shares. As soon as the market rent (and the annual adjustment percentage) is so determined, Landlord and Tenant shall immediately execute an amendment to this Lease except that stating the Base Rent payable by Lessee to Lessor during new monthly rent (i.e., at market rent but not less than the Option Period shall be monthly rent in effect at 95% the expiration of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity Initial Term) (?) and such annual adjustment percentage. Tenant shall not assign or otherwise transfer this option and any attempt to do so shall render this option null and void; provided that Tenant may assign this option to any corporation or other entity which acquires or is acquired by Circadian or which results from a merger or consolidation with Circadian or which either controls or is controlled by Circadian or which is controlled by any of the buildingforegoing, if, in any such case, this Lease is concurrently so assigned. Lessor shall provide Lessee with written notice Further, if Tenant is in default at the time of the fair market rental rate for the Premises, not later than thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend thethis option or at the last day of the Initial Term, then such exercise shall be ineffective and the lease shall expire at the end of the Initial Term.

Option to Extend Term. Notwithstanding anything to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a shall have one time (1) five-year option to extend the Term term of this Lease ("Option to Extend") for an additional period of five (5) years ("Option Period"the “Extension Options”). Such right shall apply only to Lessee's entire Premises, Lessee shall be for a required to give Lessor written notice of its opinion of the fair market annual base rent (“New Annual Rental”) as of the date of the commencement of the term of the Extension Option in question at least twelve (12) months (but not earlier than fifteen (15) months) prior to said commencement date. Within twenty (20) days thereafter, Lessor shall provide to Lessee written notice whether Lessor agrees with Lessee’s opinion of what the New Annual Rental should be or, if not, Lessor’s opinion of New Annual Rental. Within twenty (20) days of receipt from Lessor of that written notice, Lessee shall begin immediately following notify Lessor by written notice whether Lessee wishes to accept Lessor’s determination of New Annual Rental. If Lessee does not accept Lessor’s determination, Lessee shall give Lessor written notice of either (i) Lessee's initial Term and ’s then opinion of New Annual Rental, (ii) that Lessee does not wish to exercise the Extension Option, or (iii) that new Annual Rental shall be exercised determined by the arbitration procedure provided below. There shall be no limit on the number of written notices either Lessee or Lessor may deliver to the other in their efforts to agree upon the New Annual Rental, except that Lessee must inform Lessor by giving written notice to Lessor at lease least nine (9) months prior to the expiration commencement of the initial Termterm of the Extension Option in question, whether Lessee elects to (i) accept Lessor’s last determination of New Annual Rental, (ii) not exercise the applicable Extension Option, or (iii) agree to exercise the Extension Option at the New Annual Rental determined by the arbitration procedure provided below. If Lessee exercises its New Annual Rental shall be the fair market annual rent for the Premises, taking into account the commencement date of the Option to Extend term, the Term, Lessee shall continue to lease availability of parking and the Premises for such extended period upon the same terms and conditions set forth of this Lease, including operating expenses and the Annual Rental which Lessee is then quoting for vacant space in this the Office Park and/or at which Lessor has leased comparable space in the Office Park within the previous one hundred eighty (180) days. Should there be no comparable vacant space in the Building, the determination may take into account comparable vacant space in office buildings within a three- (3) mile radius of the Premises. The term fair market annual rent shall mean the annual rent and other economic terms (e.g., periodic adjustments, tenant renovations and operating expenses) for that space which would be paid by a willing lessee to a willing lessor, neither of whom is compelled to rent, for a term of five (5) years, but not less than the amount payable during the last month of the term preceding the commencement of the term of the Extension Option in question. All other terms and conditions of the Lease shall remain in effect during the term except that Paragraph(s) 7A Addendum B, and Addendum H, Sections 1-2 of the Base Rent payable by Lease shall not be effective or enforceable during the extended term(s). In the event that Lessor and Lessee cannot agree on a New Annual Rental and Lessee has provided written notice to Lessor during of Lessee’s desire to have New Annual Rental determined through arbitration, the Option Period matter shall be at submitted for decision to the American Arbitration Association in Palm Beach County, Florida, in accordance with the then rules of said association, and the arbitrators must be licensed commercial real estate brokers (or MAI appraisers) familiar with the Premises and the area within a three (3) mile radius of the Premises. The cost of said Arbitrators shall be paid by Lessor if the decision is that the New Annual Rental (disregarding other economic terms) should be less than 95% of the prevailing fair market rental rate for last amount demanded by Lessor in its notices of New Annual Rent above; shall be paid by Lessee if the Premises based upon decision is that the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity New Annual Rental (likewise disregarding other economic terms) should be 105% or more of the buildinglast amount demanded by Lessor in its notices of New Annual Rent above; and shall be paid equally by Lessor and Lessee if the decision is other than the two alternatives stated above. Lessor The arbitration procedure shall provide Lessee with written notice of the fair market rental rate for the Premises, not later take more than thirty (30) days following receipt days. However, if the arbitrators have not determined New Annual Rental prior to the commencement of the term of the Extension Option in question, Lessee shall pay the rental rate previously in effect under the Lease, plus a five percent (5%) increase until such time as the arbitrators determine the New Annual Rental. If the arbitration procedure results in an even higher rental rate, Lessee will make up the difference with the next monthly rental payment due. If the arbitration procedure results in a lower rental rate (viz., equal to or greater than the amount payable during the last month of the term preceding the term of the Extension Option in question, but less than the amount paid as a consequence of the aforesaid five percent (5%) increase), Lessee shall receive a credit against its next Monthly Rental payment, and any succeeding monthly payments, if necessary, in an amount equal to the overpayment. Except in connection with a Permitted Assignment, the Extension Options shall be personal to Lessee and may not be exercised or be assigned, voluntarily or involuntarily, by or to any person or entity other than Lessee's exercise notice, nor shall the Extension Options be assignable separate and apart from this Lease. Lessee shall not have twenty the right to exercise the Extension Options, notwithstanding anything set forth above to the contrary: (201) days during the time commencing from the date Lessor gives to Lessee a written notice that Lessee is in default under any provision of this Lease, and continuing until the default described in said notice is cured; or ("2) during the period of time commencing on the day after a monetary obligation to Lessor is due from Lessee and unpaid and continuing until the obligation is paid. The period of time within which the Extension Options may be exercised shall not be extended or enlarged by reason of Lessee's Review Period") after receipt of Lessor's notice ’s inability to exercise such Extension Options prior to satisfaction of the fair market rental rate within which foregoing conditions precedent. All rights of Lessee to accept such fair market rental rate any Extension Options shall terminate and be of no further force or to reasonable object thereto in writing. If effect if three (3) Events of Default by Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend thehave occurred.

Option to Extend Term. Notwithstanding anything to Provided that Tenant is not in default under the contrary contained in Paragraphs 1.3Lease after the lapse of any applicable cure periods, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a Tenant shall have one time (1) option (“Option”) to extend the Term ("Option to Extend") of the Lease for an additional period of five (5) years ("“Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9Term”) months prior to the expiration on all of the initial Term. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth of the Lease, except as expressly provided below in this Section 2.4. Tenant may exercise the Option by delivering written notice to Landlord of its intention to so extend the term of the Lease except that the no later than June 30, 2012. Base Rent payable by Lessee to Lessor during the Option Period Term shall be at the greater of (a) Sixty-Seven Thousand Three Hundred Sixty-One and 75/100 ($67,361.75) per month, plus cumulative annual increases of three percent (3%) during the Option Term, or (b) ninety-five percent (95% %) of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity Market Rate (as defined below) as of the buildingdate on which Tenant exercises the Option. Lessor The “Market Rate” shall mean the terms and conditions which would be offered to a non-equity, non synthetic-lease tenant for comparable laboratory space with improvements of comparable age, appearance and quality of construction located in the Sorrento Mesa submarket of San Diego, taking into account the value of existing tenant improvements over standard tenant improvements, parking ratios, rental rates, rent concessions, operating expense base year, rent increases and equivalent location, access, visibility and signage. Comparable lease terms shall be based on five (5) year transactions with corresponding adjustments to rental rates and concessions. Landlord shall determine the Market Rate by using its good faith judgment and shall provide Lessee with written notice of the fair market rental rate for Market Rate to Tenant within fifteen (15) days after Tenant delivers notice of exercise of the Premises, not later than Option. Tenant shall have thirty (30) days following receipt of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's “Tenant’s Review Period"”) after receipt of Lessor's Landlord’s notice of the fair market rental rate Market Rate within which to accept such fair market rental rate rent or to reasonable reasonably object thereto in writing. If Lessee objects to In the fair market rental rate submitted by Lessorevent that Tenant objects, Lessor Landlord and Lessee Tenant shall attempt in good faith to agree upon such fair market rental rate, the Market Rate using their best good faith efforts. If Lessor Landlord and Lessee fail Tenant are unable to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Tenant’s Review Period (the "“Outside Agreement Date") then”), at Lessee's election delivered then the matter shall be submitted to Lessor arbitration as provided in writing, Lessee may either cancel its exercise of its Option to Extend thethis Section 2.4 below:

Option to Extend Term. Notwithstanding anything to Tenant is given the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term on all provisions contained in this Lease, except for the "monthly rental value" ("Option to Extend"more specifically defined as Base Rent, Project Taxes and Operating Expenses) for an additional a period of five (5) years ("Option PeriodExtended Term"). Such right shall apply only to Lessee's entire Premises) following expiration of the initial term, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice of exercise of the option ("Option Notice") to Lessor Landlord at lease nine least six (96) months prior to but no more than one (1) year before the expiration of the initial Termterm. If Lessee exercises its Option to Extend the Term, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period Such monthly rental value shall be at 95% ninety-five percent (95 %) of the prevailing fair then current market rental rate for the Premises based upon the prevailing fair market rental rate for similar comparable space in similar industrial buildings within the vicinity Mountain View City Centre at the time of the building. Lessor shall provide Lessee with written notice commencement of the fair market rental rate for Extended Term. Provided that, if Tenant is in default on the Premisesdate of giving the Option Notice, the Option Notice shall be totally ineffective, or if Tenant is in default on the date the Extended Term is to commence, at the option of Landlord, the Extended Term shall not later than commence and this Lease shall expire at the end of the initial term. The parties shall have thirty (30) days following receipt after Landlord receives the Option Notice in which to agree on the monthly rental value during the Extended Term with an additional thirty (30) days upon mutual agreement of Lessee's exercise noticeLandlord and Tenant. Lessee If the parties agree on the monthly rental value for the Extended Term during that period, they shall immediately execute an amendment to this Lease stating the monthly rental value effective upon the expiration of the original lease term. If the parties are unable to agree on the monthly rental value for the Extended Term within that period, the Option Notice shall be of no effect or force and this Lease shall expire at the end of the initial term. Neither party to this Lease shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market right to have a court or other third party set the monthly rental rate within which value. Tenant shall have no other right to accept such fair market rental rate or to reasonable object thereto in writingextend the term beyond the initial term. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith effortsADDENDUM NO. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend the3

Option to Extend Term. Notwithstanding anything to Lessee is given the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term of this Lease on all the provisions contained in this Lease, except for monthly rent, for three five-year periods following expiration of the initial and first extended term, by giving notice of exercise of the option ("Option to Extendoption notice") for an additional period of five (5) years ("Option Period"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) least eight months prior to but not more than one year before the expiration of the initial Termthen current term. If Provided that, if Lessee exercises its Option to Extend is in material default on the Termdate of giving the option notice, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period option notice shall be totally ineffective, or if Lessee is in material default on the date the extended term is to commence, the extended term shall not commence and this lease shall expire at 95% the end of the prevailing fair market rental rate then current term. The monthly rent for the Premises based upon the prevailing fair market rental rate for similar space extended term in similar industrial buildings within the vicinity of the building. Lessor question shall provide Lessee with written notice of be the fair market rental rate rent for the Premises, taking into account the commencement date of the option term, and the then fair market base rent for comparable vacant space on a triple net basis in similar buildings within a three (3) mile radius of the Premises. The new monthly rent shall not later reflect the value of any improvements to the Premises made by Lessee which Lessee has the right to remove at the end of the term. In no event, however, shall the new monthly rent be less than the amount payable during the last month of the term preceding the term of the then current extension option. The parties shall have thirty (30) days following receipt of Lessee's exercise noticeafter Lessor receives the option notice in which to agree on the monthly rent during the extended term. Lessee If the parties agree on the monthly rent for the extended term during that period, they shall have twenty 12 immediately execute an amendment to this Lease stating the monthly rent. If the parties are unable to agree on the monthly rent for the extended term within that period, then within ten (2010) days after the expiration of that period each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least 5 years' full-time commercial appraisal experience in the area in which the Premises are located to appraise and set the monthly rent for the extended term. If a party does not appoint an appraiser within ten ("Lessee's Review Period"10) days after receipt of Lessor's the other party has given notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writingname of its appraiser, the single appraiser appointed shall be the sole appraiser and shall set the monthly rent for the extended term. If Lessee objects the two appraisers are appointed by the parties as stated in this paragraph, they shall meet promptly and attempt to set the monthly rent for the extended term. If they are unable to agree within thirty (30) days after the second appraiser has been appointed, they shall attempt to elect a third appraiser meeting the qualifications stated in this paragraph within ten (10) days after the last day the two appraisers are given to set a monthly rent. If they are unable to agree on the third appraiser, either of the parties to this lease by giving ten (10) days' notice to the fair market rental rate submitted by Lessorother party can file a petition with the Presiding Judge of the Contra Costa County Superior Court solely for the purpose of selecting a third appraiser who meets the qualifications stated in this paragraph. Each party shall bear half the cost of the Presiding Judge appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, Lessor and Lessee however selected, shall attempt be a person who has not previously acted in good faith to agree upon such fair market rental rateany capacity for either party. Within thirty (30) days after the selection of the third appraiser, using their best good faith effortsa majority of the appraisers shall set the monthly rent for the extended term. If Lessor a majority of the appraisers are unable to set the monthly rent within the stipulated period of time; the three appraisals shall be added together and Lessee fail to reach agreement on such fair market rental rate within fifteen their total divided by three; the resulting quotient shall be the monthly rent for the Premises during the extended term. If, however, the low appraisal and/or the high appraisal are more than ten percent (1510%) days following Lessee's Review Period (lower and/or higher than the "Outside Agreement Date") thenmiddle appraisal, at Lessee's election delivered to Lessor the low appraisal and/or the high appraisal shall be disregarded. If only one appraisal is disregarded the remaining two appraisals shall be added together and their total divided by two; the resulting quotient shall be the monthly rent for the Premises during the extended term. If both the low appraisal and the high appraisal are disregarded as stated in writingthis paragraph, Lessee may either cancel its exercise of its Option to Extend thethe middle appraisal shall be the monthly rent for the Premises during the extended term.

Option to Extend Term. Notwithstanding anything Tenant shall have the option to extend the Lease Term for the Option Term. Tenant shall exercise its option to extend by giving written notice to Landlord no later than 5:00 p.m. on the date which is 180 days prior to the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 termination date of the Lease, Lessor hereby grants Lessee a one time option Initial Term of this Lease that it desires to so extend the Term ("Option to Extend") for an additional period of five (5) years ("Option PeriodTenant's Notice"). Such right shall apply only to Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term After receipt of such notice and shall be exercised by Lessee by giving written notice to Lessor at lease nine (9) months no later than 150 days prior to the expiration termination date of the initial Term. If Lessee exercises its Option to Extend the TermInitial Term of this Lease, Lessee shall continue to lease the Premises for such extended period upon the same terms and conditions set forth in this Lease except that the Base Rent payable by Lessee to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor Landlord shall provide Lessee Tenant with written notice its determination of the fair market rental value of the Premises for such Option Term (the "Landlord's Determination"). Tenant shall have 30 days from the date of the Landlord's Determination to accept or reject the rental rate provided for in the Landlord's Determination. If the Tenant accepts the Landlord's Determination, then the Tenant shall so notify Landlord and the rental rate set forth therein shall be the "Fair Rental Value," and the amount of Basic Rent due for the Option Term. If the Tenant rejects the Landlord's Determination, then the Tenant shall so notify Landlord and Landlord shall thereafter have a right of first refusal to lease the Premises. If at any time after receipt of the Tenant's Notice, Landlord shall receive an offer to lease the Premises, not later than thirty (30) days following which offer Landlord shall desire to accept, Tenant shall have the right to Lease the Premises upon the rental rate and terms as set forth in such offer. Upon receipt of Lessee's exercise noticeany such offer, Landlord shall notify Tenant of the terms of such offer. Lessee Tenant shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lesseefrom receipt of such notice to elect to rent the Premises upon the terms set forth therein, which election shall be deemed exercised only upon receipt by Landlord of a notice from Tenant accept the rental rate within said fifteen (15) day period. If Tenant shall waive or be deemed to have waived its right of first refusal with respect to an offer, but such offer is not consummated by Landlord entering into a lease for the Premises with the offer or on the terms set forth in Landlord's Review Period (the "Outside Agreement Date") thennotice, at LesseeTenant's election delivered right of first refusal as set forth herein shall remain applicable to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend theall subsequent offers.

Option to Extend Term. Notwithstanding anything to Lessee shall have the contrary contained in Paragraphs 1.3, 3.1 or elsewhere in the Lease, subject to the terms of Paragraph 39 of the Lease, Lessor hereby grants Lessee a one time option to extend the Term term of this Lease for two ("Option to Extend"2) for an additional period consecutive periods of five (5) years each (the first such 5-year period being hereinafter referred to as the "First Renewal Term," the second such 5-year period being hereinafter referred to as the "Second Renewal Term," and each such 5-year period being hereinafter alternatively referred to as a "Renewal Term") if, and only if this Lease shall then be in full force and effect and Lessee is not in default under any of the provisions of this Lease beyond the expiration of any applicable notice or grace period, both at the time of notice of exercise of each such option herein contained and at the expiration of the initial term or the First Renewal Term, as the case may be. Each Renewal Term shall be upon the same terms and conditions as contained in this Lease, except that the Monthly Rent to be paid throughout each Renewal Term shall be the fair market rent (inclusive of periodic escalations thereof, if any, and taking into account then prevailing tenant concession packages on 5-year leases) prevailing, as of the date the rent determination is made for space to be delivered at commencement of the respective Renewal Term, for comparable space in comparable office buildings in the Bethesda-Chevy Chase market area as such fair market rent and concessions may be mutually agreed upon between Lessor and Lessee, and Base Operating Expenses and Base Operating Costs for the respective Renewal Term shall be the Operating Expenses and Operating Costs, respectively, actually incurred by Lessor in the calendar year in which the expiration of the initial term of this Lease or the First Term, as the case may be, occurs; provided, however, that in the event Lessor and Lessee fail to agree upon such fair market rent and concessions within thirty (30) days after Lessor's receipt of Lessee's notice of its exercise of the respective option to extend ("Option PeriodLessee's Renewal Notice"), then unless Lessee shall rescind the exercise of its respective renewal option by written notice delivered to Lessor within forty (40) days after Lessor's receipt of Lessee's Renewal Notice, time being of the essence, such fair market rent and concessions shall be determined in accordance with the "3-broker method" set forth in this Section 35; and provided further that in no event shall the Monthly Rent be less than that payable immediately prior to the commencement of the respective Renewal Term (the "Minimum Renewal Rent"). Such right If Lessee shall apply only elect to exercise either such option, it shall do so by delivering a Lessee's entire Premises, shall be for a term that shall begin immediately following Lessee's initial Term and shall be exercised by Lessee by giving written notice Renewal Notice to Lessor at lease nine not later than twelve (912) months prior to the expiration date of the initial term of this Lease or the First Renewal Term, as the case may be, time being of the essence. If Lessee exercises its Option shall fail to Extend give such timely notice, then Lessee's option and any remaining option to extend the term of this Lease beyond the expiration of the initial term or the First Renewal Term, Lessee as the case may be, shall continue thereupon terminate and this Section 35 shall be of no further force or effect. It is understood and agreed that the foregoing option to lease so extend the Premises for such extended period upon term of this Lease is not assignable, and that the same terms shall be deemed null and conditions set forth in void upon any assignment or transfer of this Lease except that the Base Rent payable by Lessee other than to Lessor during the Option Period shall be at 95% of the prevailing fair market rental rate for the Premises based upon the prevailing fair market rental rate for similar space in similar industrial buildings within the vicinity of the building. Lessor shall provide Lessee with written notice of the fair market rental rate for the Premises, not later than thirty (30) days following receipt a subsidiary or affiliate of Lessee's exercise notice. Lessee shall have twenty (20) days ("Lessee's Review Period") after receipt of Lessor's notice of the fair market rental rate within which to accept such fair market rental rate or to reasonable object thereto in writing. If Lessee objects to the fair market rental rate submitted by Lessor, Lessor and Lessee shall attempt in good faith to agree upon such fair market rental rate, using their best good faith efforts. If Lessor and Lessee fail to reach agreement on such fair market rental rate within fifteen (15) days following Lessee's Review Period (the "Outside Agreement Date") then, at Lessee's election delivered to Lessor in writing, Lessee may either cancel its exercise of its Option to Extend the.