13. Commitments and Contingencies BioTime had no fixed, non-cancelable contractual obligations as of December 31, 2015, with the exception of office and laboratory facility operating leases and capital leases for laboratory equipment. BioTime Leases On December 10, 2015, BioTime entered into a lease for approximately 30,795 square feet of rentable space in two buildings located in an office park in Alameda, California (the New Alameda Lease). The term of the New Alameda Lease is seven years and BioTime has an option to renew the term for an additional five years. The lease term will commence on the earlier of the date on which BioTime commences business operations in all or any portion of the leased premises, or June 1, 2016. BioTime moved into the New Alameda facility in February 2016 for the administrative areas of the facility and commenced the lease term (see Note 18). The landlord agreed to deliver possession of the leased premises, other than certain designated office space at one of the buildings, concurrently with execution of the New Alameda Lease, and to deliver possession of the designated office space to BioTime no later than February 1, 2016, in order for BioTime to complete construction of BioTimes planned tenant improvements and to move into the leased premises. The landlord will provide BioTime with an initial tenant improvement allowance of $1.4 million (the Initial Allowance) to be applied to the construction of improvements (costs to be pre-approved by the landlord) for the leased premises. The allowance may be increased by an additional amount of approximately $308,000 (the Additional Allowance), if BioTime so chooses (subject to landlord pre-approval of the costs). If BioTime does use any of the Additional Allowance, that amount will be amortized and repaid to the landlord with interest at a rate of 10% per annum, amortized on a monthly basis over the seven year term of the lease. Any unused balance of the Initial Allowance cannot be used against rent reduction and will expire unused.