Common use of Option to Extend Lease Term Clause in Contracts

Option to Extend Lease Term. Tenant shall have the option to extend the initial term of this Lease with respect to any of the Premises that Tenant may elect to continue to lease from Landlord for three (3) additional, successive periods of five (5) years each (each, an “Extension Period”) on the same terms, covenants and conditions of this Lease. In the event Tenant elects to exercise the option(s), Tenant shall provide Landlord written notice of Tenant’s exercise of the option(s) not less than ninety (90) days prior to the end of the then-current term, such notice shall identify each of the Premises which Tenant has elected to remain subject to this Lease during the applicable Extension Period and is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised its option to extend the term of this Lease as set forth herein and further provided that Tenant is not in default under this Lease at the end of the then current term of this Lease, this Lease shall be amended to reflect the exclusion of any of the Premises from the Lease and the corresponding reduction in the Annual Rent in connection with Tenant’s exercise of the applicable extension option. Tenant’s right to exercise the foregoing option(s) is conditioned upon Tenant’s performance of all of the duties and obligations on its part to be performed under this Lease so that, at the time of the exercise of such options, Tenant shall not be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted as provided in Section 6.02 of this Lease.

Option to Extend Lease Term. Landlord hereby grants to Tenant shall have the option to extend the initial term of this Lease with respect to any of the Premises that Tenant may elect to continue to lease from Landlord Term for three two (32) additional, successive additional periods of five (5) years (each (each, an “Extension PeriodExtended Term” and collectively, the “Extended Terms”) ), on the same terms, covenants following terms and conditions of this Lease. In the event Tenant elects to exercise the option(s), conditions: A. Tenant shall provide give Landlord written notice of Tenant’s its exercise of the option(soption to extend the Lease Term for the Extended Term no earlier than twelve (12) not less months nor later than ninety nine (909) days prior to months before the date the Lease Term would end but for said exercise. Time is of the then-current term, such notice shall identify each of the Premises which essence. If Tenant has elected fails to remain subject to this Lease during the applicable Extension Period and is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised timely exercise its option to extend the term of Lease Term for the first Extended Term, then Tenant waives its right to extend the Lease Term for the second Extended Term. B. Tenant may not extend the Lease Term pursuant to this Lease as set forth herein and further provided that Paragraph 3.4 if Tenant is not in default under default, beyond applicable notice and cure periods, in the performance of any of the material terms and conditions of this Lease at the end time of Tenant’s notice of exercise of this option, or if this Lease has been assigned (other than to a Permitted Transferee) or in the event the Premises has been sublet in its entirety for the balance of the then current term Term (other than to a Permitted Transferee). C. All terms and conditions of this Lease, this Lease shall apply during the applicable Extended Term, except that (i) the monthly Base Rent for the Extended Term shall be amended determined in accordance with Paragraph 3.4.E below, (ii) there shall be no further rights to reflect extend the exclusion Lease Term beyond the Extended Terms referred to in the introductory paragraph of this Paragraph 3.4 above, (iii) Tenant shall not be entitled to six months of free Base Rent as provided in Paragraph 1.10 above and (iv) Landlord shall have no obligation to construct any tenant improvements on, in or around the Premises or in the Building or to provide any tenant improvement allowance, refurbishment allowance, preliminary site plan allowance or fit-up allowance. D. Once Tenant delivers notice of its applicable exercise of the option to extend the Lease Term, Tenant may not withdraw such exercise and, subject to the provisions of this Paragraph 3.4, such notice shall operate to extend the Lease Term. Upon the applicable extension of the Lease Term pursuant to this Paragraph 3.4, the term “Lease Term” as used in this Lease shall thereafter include the applicable Extended Term and the expiration date of the Lease shall be the expiration date of the applicable Extended Term. E. If Tenant elects to extend the Lease Term pursuant to the terms of Paragraph 3.4.A above, the monthly Base Rent for the applicable Extended Term shall be an amount equal to one hundred percent (100%) of the monthly fair market rental value of the Premises from the Lease and the corresponding reduction in the Annual Rent in connection with Tenant’s exercise of the applicable extension option. Tenant’s right relation to exercise the foregoing option(s) is conditioned upon Tenant’s performance of all of the duties and obligations on its part to be performed under this Lease so that, market conditions at the time of the exercise applicable extension (including, but not limited to, rental rates for comparable space in Class A office buildings in the North San ▇▇▇▇ submarket (“Comparable Buildings”) with comparable tenant improvements and taking into consideration all relevant factors, including, without limitation, any adjustments to rent based upon direct costs (operating expenses) and taxes, load factors, cost of such options, living or other rental adjustments; rent abatements and other rent concessions; tenant improvement allowances; the relative strength of the tenants; the size of the space; whether a brokerage commission will be paid; and any other factors which affect market rental values at the time of extension). The Base Rent payable by Tenant during the applicable Extended Term shall not include any cost of living or other inflationary adjustments to occur during the applicable Extended Term that are assumed in the determination of the fair market rental value of the Premises. The monthly Base Rent for the applicable Extended Term shall be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted determined as provided in Section 6.02 of this Lease.follows::

Option to Extend Lease Term. 36.01 Providing that Tenant has not defaulted in the terms or conditions of this Lease, Tenant shall have the one (1) option to extend the initial term Term of this Lease with respect to any from and after the expiration of the Premises that Tenant may elect to continue to lease from Landlord original Term for a period of three (3) additionalyears. Should Tenant decide to exercise this option, successive periods same shall be deemed validly exercised only if Landlord shall have received written notice of five INITIALS ----------- MM / M ----------- exercise of option from Tenant in writing on or before twelve (512) years each (eachmonths prior to the expiration of the original Term. TIME SHALL BE DEEMED TO BE OF THE ESSENCE IN CONNECTION WITH THE EXERCISE OF THIS OPTION. In the event of the exercise of this option, an “Extension Period”) on the same terms, covenants all terms and conditions of this Lease. In Lease shall continue and remain in full force and effect during the event Tenant elects to exercise the option(s), Tenant shall provide Landlord written notice of Tenant’s exercise of the option(sthree (3) not less than ninety (90) days prior to the end of the then-current year option term, such notice shall identify each of provided, however, that the Premises which Tenant has elected to remain subject to this Lease minimum net monthly rental installments during the applicable Extension Period and three (3) year option term shall be Twenty Two Thousand Eight Hundred Seventy One ($22,871.00) Dollars. Tenant is to be given also a Tenant of Landlord in the manner provided in Section 25.04 of adjacent premises commonly known as ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇, under a Lease which is co-terminus with this Lease. Provided The Lease for said adjacent premises also grants Tenant an option to extend the term of that Lease for an equal additional three (3) year period. Anything contained herein to the contrary not withstanding Tenant's right and option to extend the term hereof is conditioned upon Tenant has duly exercised simultaneously exercising its option to extend the term of this Lease as set forth herein and further provided that Tenant is not in default under this Lease at the end of the then current term of this Lease, this Lease shall be amended to reflect the exclusion of any of the Premises from the Lease and the corresponding reduction in the Annual Rent in connection with Tenant’s exercise of the applicable extension option. Tenant’s right to exercise the foregoing option(s) is conditioned upon Tenant’s performance of all of the duties and obligations on its part to be performed under this Lease so that, at the time of the exercise of such options, Tenant shall not be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted as provided in Section 6.02 of this Leasefor ▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇.

Option to Extend Lease Term. Landlord hereby grants to Tenant shall have the option to extend the initial term of this Lease with respect to any of the Premises that Tenant may elect to continue to lease from Landlord Term for three one (31) additional, successive periods additional period of five (5) years each (each( “Extended Term”), an “Extension Period”) on the same termsfollowing terms and conditions: A. Tenant shall give Landlord written notice of its exercise of the option to extend the Lease Term for the Extended Term no earlier than twelve (12) months nor later than nine (9) months before the date the Lease Term would end but for said exercise. Time is of the essence. B. Tenant may not extend the Lease Term pursuant to this Paragraph 3.3 if Tenant is in default beyond any applicable notice and cure period, covenants in the performance of any of the material terms and conditions of this Lease. In Lease at the event Tenant elects to exercise the option(s), Tenant shall provide Landlord written notice time of Tenant’s notice of exercise of this option, or if this Lease has been assigned (other than to a Permitted Transferee) or in the event the Premises has been sublet in its entirety for the balance of the Lease Term (other than to a Permitted Transferee). C. All terms and conditions of this Lease shall apply during the Extended Term, except that (i) the monthly Base Rent for the Extended Term shall be determined in accordance with Paragraph 3.3.E below, (ii) there shall be no further rights to extend the Lease Term beyond the Extended Term, (iii) Tenant shall not be entitled to eight (8) months of free or conditionally abated Base Rent as provided in Paragraph 1.10 above and (iv) Landlord shall have no obligation to construct any tenant improvements on, in or around the Premises or in the Building or to provide any tenant improvement allowance, refurbishment allowance, preliminary site plan allowance or fit-up allowance. D. Once Tenant delivers notice of its applicable exercise of the option(s) option to extend the Lease Term, Tenant may not less than ninety (90) days prior withdraw such exercise and, subject to the end provisions of the then-current termthis Paragraph 3.3, such notice shall identify each operate to extend the Lease Term. Upon the extension of the Lease Term pursuant to this Paragraph 3.3, the term “Lease Term” or “Term of the Lease” or similar expression as used in this Lease shall thereafter include the Extended Term and the expiration date of the Lease shall be the expiration date of the Extended Term. E. If Tenant elects to extend the Lease Term pursuant to the terms of Paragraph 3.3.A above, the monthly Base Rent for the applicable Extended Term shall be an amount equal to one hundred percent (100%) of the monthly fair market rental value of the Premises which Tenant has elected in relation to remain subject to this Lease during the applicable Extension Period and is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised its option to extend the term of this Lease as set forth herein and further provided that Tenant is not in default under this Lease at the end of the then current term of this Lease, this Lease shall be amended to reflect the exclusion of any of the Premises from the Lease and the corresponding reduction in the Annual Rent in connection with Tenant’s exercise of the applicable extension option. Tenant’s right to exercise the foregoing option(s) is conditioned upon Tenant’s performance of all of the duties and obligations on its part to be performed under this Lease so that, market conditions at the time of the exercise extension (including, but not limited to, rental rates for comparable space in Class A office buildings in the North San ▇▇▇▇ submarket (“Comparable Buildings”) with comparable tenant improvements and taking into consideration all relevant factors, including, without limitation, any adjustments to rent based upon direct costs (operating expenses) and taxes, load factors, cost of living or other rental adjustments; rent abatements and other rent concessions; tenant improvement allowances; the relative strength of the tenants; the size of the space; whether a brokerage commission will be paid; and any other factors which affect market rental values at the time of extension); provided, that the monthly Base Rent for the applicable Extended Term shall in no event be lower than the monthly Base Rent payable during the last month of the Lease Term immediately preceding the Extended Term (without regard to any abatement of monthly Base Rent during such options, last month of the Lease Term immediately preceding the Extended Term). The Base Rent payable by Tenant during the Extended Term shall not include any cost of living or other inflationary adjustments to occur during the Extended Term that are assumed in the determination of the fair market rental value of the Premises. The monthly Base Rent for the Extended Term shall be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted determined as provided in Section 6.02 of this Lease.follows:

Option to Extend Lease Term. Tenant shall have the option to extend the initial Lease Agreement, including Addendum I and II and this Addendum III, for an additional term of this Lease with respect to any of the Premises that Tenant may elect to continue to lease from Landlord for three (3) additional, successive periods of five (5) years each (eachyears, an “Extension Period”) on from March 31, 1997 to March 31, 2002. Tenant may exercise such option to extend the same termslease term as follows: If Tenant notifies Landlord prior to June 1, covenants and conditions of this Lease. In the event Tenant elects to exercise the option(s)1993, Tenant shall provide Landlord written notice of Tenant’s exercise have the right to extend the lease on the existing terms and conditions, subject to determination of the option(srental rate as follows. The rate will be the sum of the effective rates in effect May 31, 1997, for the Original Lease and Addendum II and III with a reduction of $5,816.88 MONTHLY. The rate for all subsequent years will be the current effective base rate plus the annual adjustment in the CPI for Houston SMSA, not to exceed five percent (5%) per year, based on the previous 12 months. If Tenant exercises its option hereunder, the twenty-thousand ($20,000.00) dollar security deposit secured by the Irrevocable Letter of Credit from Texas Commerce Bank (G-111 419) dated February 8, 1988, shall be extended from the expiration of June 30, 1997, to June 30, 2002. If Tenant does not less than exercise the above option by June 1, 1993, Tenant must notify the Landlord ninety (90) days prior to the end original termination date of the lease to have the right to extend the lease on the existing terms and conditions, subject to determination of the rental rate as agreed by the fair market value as follows: The fair market value shall be as mutually agreed by Landlord and Tenant within fifteen (15) days after Tenant exercises its option to renew. If the parties are unable to agree upon the fair market value of the Premises, Landlord and Tenant shall each appoint an appraiser who is knowledgeable in commercial property values in the area in which the Premises are located and the two appraisers shall, then within ten (10) days after their selection, agree upon the fair market value of the Premises. If they are unable to agree, they shall appoint a third appraiser with the same qualifications and the three appraisers shall then-current term, such notice within fifteen (15) days thereafter, prepare appraisals of the Premises. The average of the three appraisals shall identify each be used as the fair market value of the Premises which Tenant has elected to remain subject to this Lease during for the applicable Extension Period and Second Option Period; provided, however, that if any appraiser's estimate is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised its option to extend the term of this Lease as set forth herein and further provided that Tenant is not in default under this Lease at the end either (a) less than ninety percent (90%) of the average figure, or (b) more than one hundred ten percent (110%) of such average then current term of this Lease, this Lease shall be amended to reflect the exclusion of any fair market value of the Premises from will be the Lease average of the remaining figures which are between ninety percent (90%) and one hundred and ten percent (110%) inclusive of the corresponding reduction average figure even if only one estimate remains. If all figures fall outside of the range between ninety percent (90%) and one hundred ten percent (110%), then the middle figure of the three appraisals shall be the fair market value even if the middle figure is the same as the higher or lower figure. Landlord and Tenant shall each bear the cost of its appraiser and shall share equally the cost of the third. After the Renewal Term rent for any Renewal Term has been determined in accordance with the Annual Rent in connection with Tenant’s provisions set forth herein, Landlord shall promptly give Tenant written notice of the annual renewal rent for the Renewal Term and Tenant shall thereafter have fifteen (15) days to decide whether the reaffirm or cancel its exercise of the applicable extension optionoption to renew by written notice of the Landlord. Tenant’s right If Tenant exercises its option hereunder, the twenty-thousand ($20,000.00) dollar security deposit secured by the Irrevocable Letter of Credit from Texas Commerce Bank (G-111 419) dated February 8, 1988, shall be extended from the expiration of June 30, 1997, to exercise June 30, 2002. This Addendum III, and the foregoing option(s) is conditioned upon Tenant’s performance of Lease Agreement dated December 4, 1986, and Addendum I and II to the Lease Agreement constitute the entire understanding between the parties with regard to leasing space at 10301 Stella Link, Suite 110, Houston, Harris County, Texas. Default ▇▇▇▇▇ ▇▇▇ ▇▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇lt under all of the duties and obligations on its part to be performed under this Lease so thatagreements. Except for the foregoing changes, at the time all of the exercise covenants, terms and conditions of such optionsthe prior Lease Agreement, and Addendum I and II remain the same. Landlord: MAIN LINK BUSINESS PARK ASSOCIATES By: /s/ JAMES E. STUBBS ATTEST: /s/ RHONDA SHAW ▇▇▇▇▇ ▇. Stubbs Assistant Vice President ▇▇▇: ▇▇▇▇A INVESTM▇▇▇▇, ▇▇▇. (▇▇▇AGING PARTNER) (SUCCESSOR TO ALTA MAIN LINK INVESTMENTS, INC.) Tenant: TANOX BIOSYSTEMS, INC. By: /s/ NANCY T. CHANG ATTEST: ?????????? ▇▇▇▇▇ ▇. ▇▇▇▇g -- President DESCRIPTION OF LEASE P▇▇▇▇▇▇▇ -- ▇▇▇IBIT "A" Description Lease Premises are located in Building # 10301 Stella Link which is part of Main Link Business Park situated on a tract containing 4.1684 acres out of that certain 22.2444 acre (984,966 square feet), more or less, tract, land located in Harris County Texas, conveyed from Marvin H. McMurry, Jr. et al, to M▇▇▇ ▇▇nk Business Center Associates ▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇ ▇, 1982, and recorded under Clerk's File No. H471470 of the Harris County Deed Records, to which deed and the record thereof refe▇▇▇▇▇ is here made for all purposes. TANOX - PHASE I (Approx. 4032 SF) LEASE ADDENDUM PREMISES (Approx. 8013 SF) LEASE ADDENDUM III APPROX. 6569 SF Fischer & Porter ▇▇▇▇▇▇▇▇ STELLA LINK ▇▇▇▇▇▇▇ "▇" PHASE III EXPANSION Build-out of improvements to the Phase III expansion is intended to provide for additional production capabilities, general administrative areas, storage space, or other research and development-related activities. Because Tenant shall not intends to produce certain pharmaceutical products for human use, a part of the planned build-out must be undertaken with due consideration of applicable Food and Drug Administration requirements, including current Good Manufacturing Practices. Build out is planned to occur in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted as provided in Section 6.02 of this Lease.following stages:

Option to Extend Lease Term. Tenant shall have (a) Provided that the option to extend Lease is still in full force and effect and that Lessee is not in default in the initial term payment of this Lease with respect to rent or of any of the Premises that Tenant may elect to continue to lease from Landlord for three (3) additional, successive periods of five (5) years each (each, an “Extension Period”) on the same terms, covenants terms and conditions of this the Lease. In , Lessor grants to Lessee the event Tenant elects to exercise the option(s), Tenant shall provide Landlord written notice of Tenant’s exercise of the option(s) not less than ninety (90) days prior to the end of the then-current term, such notice shall identify each of the Premises which Tenant has elected to remain subject to this Lease during the applicable Extension Period right and is to be given in the manner provided in Section 25.04 of this Lease. Provided that Tenant has duly exercised its option to extend the term of this Lease as set forth herein for an additional two (2) year period ("Extended Term") commencing on April 1, 1998, the date of the first day following the expiration of the original term, and further provided ending on March 31, 2000; provided, that Tenant is not in default under Lessee shall have exercised this option by having given Lessor written notice of election to extend the term of this Lease at least one hundred eighty (180) days prior to the end expiration of the then current original term of this Lease. Except for the rental adjustment as hereinafter set forth, this all other terms and conditions of the Lease shall be amended apply to reflect the exclusion Extended Term. (b) Lessee agrees to pay to Lessor in advance on the first day of any of each and every month during the Premises from Extended Term the Lease and the corresponding reduction monthly rent determined in the Annual Rent in connection with Tenant’s exercise following manner: (i) The parties hereto shall attempt to agree upon the then prevailing market rent for the Extended Term during the one hundred eighty (180) through the one hundred fifty (150) days immediately preceding the first day of the applicable extension optionExtended Term. Tenant’s right If the parties agree on the adjusted rent within the time specified, the parties will forthwith execute a letter agreement reflecting the monthly rent for the applicable Extended Term. (ii) If the parties are unable to exercise agree upon the foregoing option(sadjusted rent for an applicable Extended Term within the time provided above, then within ten (10) is conditioned upon Tenant’s performance days thereafter Lessor shall appoint an arbitrator and immediately notify Lessee in writing of all said appointment and of the duties name and obligations on its part to be performed under this Lease so that, at the time address of the exercise arbitrator so appointed, and Lessee shall also similarly at said time appoint an arbitrator and immediately notify Lessor in writing of such options, Tenant shall said appointment and of the name and address of the arbitrator so appointed. If the two arbitrators do not be in default hereunder. In the event that Tenant elects to extend the initial term of this Lease, the Annual Rent shall continue to be adjusted as provided in Section 6.02 of this Lease.within twenty