RYLAND GROUP INC
EXHIBIT 10.18
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<TYPE>EX-10.18
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<FILENAME>a2167774zex-10_18.htm
<DESCRIPTION>EXHIBIT 10.18
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<BR></FONT><FONT SIZE=2><B>Exhibit&nbsp;10.18    <BR>    </B></FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2><A
NAME="kc1089_first_amendment_to_office_building_lease"> </A>
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<BR></FONT><FONT SIZE=2><B>FIRST AMENDMENT TO OFFICE BUILDING LEASE    <BR>    </B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This FIRST AMENDMENT TO OFFICE BUILDING LEASE (this "</FONT><FONT SIZE=2><B>First Amendment</B></FONT><FONT SIZE=2>") is made and entered into as of
August&nbsp;26, 2005, by and between KILROY REALTY, L.P., a Delaware limited partnership ("</FONT><FONT SIZE=2><B>Landlord</B></FONT><FONT SIZE=2>"), and THE RYLAND GROUP,&nbsp;INC., a Maryland
corporation ("</FONT><FONT SIZE=2><B>Tenant</B></FONT><FONT SIZE=2>"). </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>R E C I T A L S : </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;&nbsp;&nbsp;&nbsp;Landlord
and Tenant entered into that certain Office Lease dated as of December, 1999 (the "</FONT><FONT SIZE=2><B>Lease</B></FONT><FONT SIZE=2>"), whereby Landlord
leased to Tenant and Tenant leased from Landlord a total of approximately 32,946 rentable (31,388 usable) square feet of space (the "</FONT><FONT SIZE=2><B>Premises</B></FONT><FONT SIZE=2>"),
comprised of (i)&nbsp;approximately 7,622 rentable (6,686 usable) square feet of space commonly known as Suite 100, and (ii)&nbsp;approximately 25,324 rentable (24,702 usable) square feet of space
commonly known as Suite 400, located on the first (1<SUP>st</SUP>) and fourth (4<SUP>th</SUP>) floors, respectively, of that certain office building located at 24025 Park Sorrento, Calabasas,
California (the </FONT><FONT SIZE=2><B>"Building"</B></FONT><FONT SIZE=2>), which Building forms a part of that certain multi-building project commonly known as "Calabasas Park Centre" (the
"</FONT><FONT SIZE=2><B>Project</B></FONT><FONT SIZE=2>"). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;&nbsp;&nbsp;&nbsp;Tenant
desires to extend the term of the Lease, and in connection therewith, Landlord and Tenant desire to amend the Lease on the terms and conditions contained herein. </FONT></P>

<P ALIGN="CENTER"><FONT SIZE=2>A G R E E M E N T : </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Defined Terms.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;All capitalized terms when used herein shall have the same respective
meanings as are given such terms in the Lease unless expressly provided otherwise in this First Amendment. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Extended Term.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant acknowledge that Tenant's lease of the Premises is
scheduled to expire on October&nbsp;31, 2006, pursuant to the terms of the Lease. Notwithstanding any provision to the contrary set forth in the Lease, the term of Tenant's lease of the Premises is
hereby extended for a period of ten (10)&nbsp;years commencing on November&nbsp;1, 2006 (the "</FONT><FONT SIZE=2><B>Extended Term Commencement Date</B></FONT><FONT SIZE=2>"), and ending on
October&nbsp;31, 2016 (the "</FONT><FONT SIZE=2><B>Extended Term Expiration Date</B></FONT><FONT SIZE=2>"), unless sooner terminated as provided in the Lease, as hereby amended. The period of time
commencing on the Extended Term Commencement Date and ending on the Extended Term Expiration Date shall be referred to herein as the "</FONT><FONT SIZE=2><B>Extended Term</B></FONT><FONT SIZE=2>." </FONT></P>

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1</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Base Rent.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Monthly Base Rent.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Prior to the Extended Term Commencement Date,
Tenant shall continue to pay Monthly Base Rent for the Premises in accordance with the terms of the Lease. Notwithstanding the foregoing or any provision to the contrary set forth in the Lease,
commencing on the Extended Term Commencement Date and continuing throughout the Extended Term, Tenant shall pay Monthly Base Rent for the Premises in accordance with the following schedule: </FONT></P>

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<TABLE WIDTH="87%" BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR VALIGN="BOTTOM">
<TH WIDTH="17%" ALIGN="CENTER"><FONT SIZE=1><B>Period<BR> </B></FONT><HR NOSHADE></TH>
<TH WIDTH="11%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Annual Base Rent</B></FONT><HR NOSHADE></TH>
<TH WIDTH="11%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Monthly Base Rent</B></FONT><HR NOSHADE></TH>
<TH WIDTH="11%"><FONT SIZE=1>&nbsp;</FONT></TH>
<TH COLSPAN=2 ALIGN="CENTER"><FONT SIZE=1><B>Monthly Base<BR>
Rental Rate Per<BR>
Rentable<BR>
Square Foot</B></FONT><HR NOSHADE></TH>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2>November 1, 2006 &#150;<BR>
October 31, 2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>1,126,753.20</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>93,896.10</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2>*</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2>2.85</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2007 &#150;<BR>
October 31, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,162,334.88</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
96,861.24</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
2.94</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2008 &#150;<BR>
October 31, 2009&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,197,916.56</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
99,826.38</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.03</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2009 &#150;<BR>
October 31, 2010&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,233,498.24</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
102,791.52</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.12</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2010 &#150;<BR>
October 31, 2011&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,269,079.92</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
105,756.66</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.21</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2011 &#150;<BR>
October 31, 2012&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,308,615.12</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
109,051.26</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.31</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2012 &#150;<BR>
October 31, 2013&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,348,150.32</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
112,345.86</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.41</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2013 &#150;<BR>
October 31, 2014&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,387,685,52</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
115,640.46</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.51</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2014 &#150;<BR>
October 31, 2015&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,431,174.24</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
119,264.52</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.62</FONT></TD>
</TR>
<TR VALIGN="BOTTOM">
<TD WIDTH="17%" ALIGN="RIGHT"><FONT SIZE=2><BR>
November 1, 2015 &#150;<BR>
October 31, 2016&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD WIDTH="11%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
1,474,662.96</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="13%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
122,888.58</FONT></TD>
<TD WIDTH="11%" VALIGN="TOP"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP"><FONT SIZE=2><BR>$</FONT></TD>
<TD WIDTH="15%" ALIGN="RIGHT" VALIGN="TOP"><FONT SIZE=2><BR>
3.73</FONT></TD>
</TR>
</TABLE>
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<DL compact>
<DT style='margin-bottom:-11pt;'><FONT SIZE=2>*</FONT></DT><DD><FONT SIZE=2>The
installments of Monthly Base Rent payable by Tenant for the first three (3)&nbsp;months of the Extended Term (</FONT><FONT SIZE=2><I>i.e.,</I></FONT><FONT SIZE=2> the period from
November&nbsp;1, 2006 through January&nbsp;31, 2007) shall be subject to reduction in accordance with the terms set forth in </FONT><FONT SIZE=2><I>Section&nbsp;3.2</I></FONT><FONT SIZE=2> of
this First Amendment. </FONT></DD></DL>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Abatement of Monthly Base Rent.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any contrary provision
set forth in </FONT><FONT SIZE=2><I>Section&nbsp;3.1</I></FONT><FONT SIZE=2>, above, provided that Tenant is not then in default under the Lease (beyond all applicable notice and cure periods), as
amended hereby, Tenant's Monthly Base Rent for that portion of the Premises consisting of Suite 100 only (</FONT><FONT SIZE=2><I>i.e.,</I></FONT><FONT SIZE=2>for 7,622 rentable square feet of space
of the Premises only) shall be abated for the first three (3)&nbsp;months of the Extended Term, thereby reducing each installment of Monthly Base Rent payable by Tenant for the three
(3)&nbsp;month period commencing on the November&nbsp;1, 2006 (</FONT><FONT SIZE=2><I>i.e.,</I></FONT><FONT SIZE=2> the Extended Term Commencement Date) and ending on January&nbsp;31, 2007 to
Seventy-Two Thousand One Hundred Seventy-Three and 40/100 Dollars ($72,173.40) (</FONT><FONT SIZE=2><I>i.e.,</I></FONT><FONT SIZE=2> $2.85 per rentable square foot of Suite 400 only). </FONT></P>

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<P ALIGN="CENTER"><FONT SIZE=2><BR>
2</FONT></P>

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<P style='page-break-before:always'></p>
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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Operating Expenses.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Prior to the Extended Term Commencement Date, Tenant shall
continue to pay Tenant's Percentage of Operating Expenses for the Premises in accordance with the terms of the Lease. Notwithstanding any provision to the contrary set forth in the Lease or this First
Amendment, commencing on the Extended Term Commencement Date and continuing throughout the Extended Term, Tenant shall continue to pay Tenant's Percentage of Operating Expenses in connection with the
Premises in accordance with the terms of the Lease; provided, however, that for purposes of calculating Tenant's Operating Expense Allowance for the Extended Term
(</FONT><FONT SIZE=2><I>i.e.,</I></FONT><FONT SIZE=2> the period commencing on November&nbsp;1, 2006 and expiring on October&nbsp;31, 2016), the Base Year shall be the calendar year 2006.
Notwithstanding the foregoing or any other contrary provision of the Lease, as amended hereby, however, Tenant shall not be obligated to pay Tenant's Percentage of Operating Expenses attributable to
the first twelve (12)&nbsp;months of the Extended Term (</FONT><FONT SIZE=2><I>i.e,</I></FONT><FONT SIZE=2> the period from November&nbsp;1, 2006 through October&nbsp;31, 2007). </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Improvements in the Premises.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant acknowledge that Tenant has been
occupying the Premises pursuant to the Lease, and therefore Tenant continues to accept the Premises in its currently existing, "as-is" condition. Except as specifically set forth in this
First Amendment and the Tenant Work Letter attached hereto as </FONT><FONT SIZE=2><B><I>Exhibit&nbsp;A</I></B></FONT><FONT SIZE=2> (the "</FONT><FONT SIZE=2><B>Tenant Work
Letter</B></FONT><FONT SIZE=2>"), Landlord shall not be obligated to provide or pay for any improvement work or services related to the Premises during the Extended Term. Except as specifically set
forth in the Tenant Work Letter, Tenant hereby acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty regarding the condition of the Premises or with
respect to the suitability of any of the Premises for the conduct of Tenant's business. Any improvements, alterations, additions or changes to the Premises other than the "Tenant Improvements," as
that term is defined in </FONT><FONT SIZE=2><I>Section&nbsp;2.1</I></FONT><FONT SIZE=2> of the Tenant Work Letter, shall be performed pursuant to the terms of </FONT> <FONT SIZE=2><I>Article&nbsp;13</I></FONT><FONT SIZE=2> of the Lease. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Right of First Offer.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Tenant's right of first offer set forth in </FONT> <FONT SIZE=2><I>Section&nbsp;2</I></FONT><FONT SIZE=2> of the
Addendum attached to the Lease shall remain in full force and effect during the Extended Term.
 </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Option Term.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Tenant shall have the right to further extend the term of the Lease for
an additional five (5)&nbsp;year period, subject to and in accordance with the terms and conditions set forth in </FONT><FONT SIZE=2><I>Sections 3(b)</I></FONT><FONT SIZE=2> through </FONT> <FONT SIZE=2><I>3(o)</I></FONT><FONT SIZE=2> of the Lease.
</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Termination Right.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Provided that the Original Tenant is not in default under the
Lease, as amended, as of the date of Tenant's delivery of the "Termination Notice," as that term is defined below, the Original Tenant shall have a one-time right to terminate the Lease,
as amended hereby, effective as of October&nbsp;31, 2011 (the "</FONT><FONT SIZE=2><B>Termination Date</B></FONT><FONT SIZE=2>"), provided that (i)&nbsp;Landlord receives written notice (the
"</FONT><FONT SIZE=2><B>Termination Notice</B></FONT><FONT SIZE=2>") from Tenant on or before October&nbsp;31, 2010, stating that Tenant irrevocably exercises its right to terminate the Lease, as
amended hereby, pursuant to the terms and conditions of this </FONT><FONT SIZE=2><I>Section&nbsp;8,</I></FONT><FONT SIZE=2> and (ii)&nbsp;Tenant pays to Landlord, concurrently with its delivery
of the Termination Notice, as an early termination fee, an amount equal to the sum of the (x)&nbsp;the Monthly Base Rent payable during the sixty-first (61<SUP>st</SUP>) through the sixty-third
(63<SUP>rd</SUP>) months of the Extended Term, (y)&nbsp;the unamortized portion, as of the Termination Date, of all costs expended by Landlord in connection with the Tenant Improvements, the
Tenant Improvement Allowance and any other allowances paid by Landlord in connection with any First Offer Space leased by Tenant, and (z)&nbsp;the unamortized portion, as of the Termination Date, of
all leasing commissions paid by Landlord in connection with the Lease, as amended, including any First Offer Space, with the costs set forth in items (y)&nbsp;and (z)&nbsp;above being amortized at
an annual interest rate of seven percent (7%) over the initial Extended Term. Provided that the Original Tenant terminates the Lease, as amended, pursuant to the terms of this </FONT> <FONT SIZE=2><I>Section&nbsp;8,</I></FONT><FONT SIZE=2>
(A)&nbsp;the Lease, as amended, shall automatically terminate and be of no further force or effect, (B)&nbsp;Landlord and Tenant
shall be relieved of their respective obligations under the Lease, as amended, as of the Termination Date, except those obligations set forth in the Lease, as amended, which specifically survive the
expiration or earlier termination of the Lease, as amended including, without limitation, the payment by Tenant of all amounts owed by Tenant under the Lease, as amended, up to and including the </FONT></P>

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3</FONT></P>

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<P><FONT SIZE=2>Termination
Date, and (C)&nbsp;as of the date of Tenant's delivery of the Termination Notice, Tenant's right lease any first offer space pursuant to </FONT> <FONT SIZE=2><I>Section&nbsp;6,</I></FONT><FONT SIZE=2> above, shall be deemed null and void and no
further force or effect. The rights contained in this </FONT> <FONT SIZE=2><I>Section&nbsp;8</I></FONT><FONT SIZE=2> shall be personal to the Original Tenant and may only be exercised by the Original Tenant (and not any assignee, sublessee or other
transferee of the Original Tenant's interest in the Lease, as amended). </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Signage.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the terms and conditions set forth in the first sentence of </FONT> <FONT
SIZE=2><I>Article&nbsp;34</I></FONT><FONT SIZE=2> of the Lease (but subject to all other terms and conditions set forth therein), commencing as of the date of this First Amendment and
continuing throughout the Extended Term, Tenant shall be entitled to (i)&nbsp;a maximum of two (2)&nbsp;eyebrow identification signs on the exterior of the Building, one (1)&nbsp;sign to be
placed on the north facing side of the Building (in a location mutually and reasonably agreed upon by Landlord and Tenant) and the other sign to be placed on the south facing side of the Building (in
a location mutually and reasonably agreed upon by Landlord and Tenant), and (ii)&nbsp;Tenant's existing identification signage located on the existing monument sign adjacent to the Building.
Tenant's rights and obligations with respect to such signage shall be subject to all applicable terms and conditions of </FONT><FONT SIZE=2><I>Article&nbsp;34</I></FONT><FONT SIZE=2> of the Lease. </FONT></P>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Parking Relocation.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;The parties hereby acknowledge that Landlord is contemplating
construction of any additional phase of the Project, which construction may require relocation of certain parking areas utilized by Tenant in connection with its lease of the Premises. If Landlord
proceeds with the construction of such additional phase of the Project and Landlord determines, in its sole discretion, that the relocation of such parking areas is necessary, Landlord agrees that it
shall provide Tenant with not less than thirty (30)&nbsp;days prior written notice of the commencement of such construction at
the Project and the relocation of such parking areas, which notice shall, among other items, identify the alternate parking areas provided by Landlord for Tenant's use. In no event shall any capital
expenditures incurred by Landlord with respect to the relocation of the such parking areas be included in Operating Expenses, except as expressly permitted under the Lease. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>Broker.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Landlord and Tenant hereby warrant to each other that they have had no
dealings with any real estate broker or agent in connection with the negotiation of this First Amendment excepting only Travers Realty (the "</FONT><FONT SIZE=2><B>Broker</B></FONT><FONT SIZE=2>"),
and that they know of no other real estate broker or agent who is entitled to a commission in connection with this First Amendment. Each party agrees to indemnify and defend the other party against
and hold the other party harmless from any and all claims, demands, losses, liabilities, lawsuits, judgments, costs and expenses (including without limitation reasonable attorneys' fees) with respect
to any leasing commission or equivalent compensation alleged to be owing on account of any dealings with any real estate broker or agent occurring by, through, or under the indemnifying party other
than the Broker. The terms of this </FONT><FONT SIZE=2><I>Section&nbsp;10</I></FONT><FONT SIZE=2> shall survive the expiration or earlier termination of the Lease, as amended hereby. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.</FONT><FONT
SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT><FONT SIZE=2><B><I>No Further Modification.</I></B></FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Except as specifically set forth in this First Amendment,
all of the terms and provisions of the Lease, as amended, shall remain unmodified and in full force and effect. In the event of any conflict between the terms and conditions of the Lease and the terms
and conditions of this First Amendment, the terms and conditions of this First Amendment shall prevail. </FONT></P>

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4</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, this First Amendment has been executed as of the day and year first above written. </FONT></P>

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<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><B>LANDLORD:</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
KILROY REALTY, L.P.,<BR>
a Delaware limited partnership</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
By:</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2><BR>
Kilroy Realty Corporation,<BR>
a Maryland corporation,<BR>
its general partner</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
/s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JOHN T. FUCCI</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;<BR>
John T. Fucci<BR>
Sr. Vice President<BR>
Asset Management</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD WIDTH="8%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="42%"><FONT SIZE=2><BR>
By: /s/&nbsp;&nbsp;</FONT><FONT SIZE=2>JEFFREY C. HAWKEN</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<BR>
Name: Jeffrey C. Hawken<BR>
Title: Executive Vice President<BR>
Chief Operating Officer</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><BR><FONT SIZE=2><B>TENANT:</B></FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
THE RYLAND GROUP,<BR>
a Maryland corporation</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
By: /s/&nbsp;&nbsp;</FONT><FONT SIZE=2>ROBERT J. CUNNION, III</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;<BR>
Name: Robert J. Cunnion, III<BR>
Title: SVP</FONT></TD>
</TR>
<TR VALIGN="TOP">
<TD WIDTH="47%"><FONT SIZE=2><BR>
&nbsp;</FONT></TD>
<TD WIDTH="3%"><FONT SIZE=2><BR>&nbsp;</FONT></TD>
<TD COLSPAN=2><FONT SIZE=2><BR>
By: /s/&nbsp;&nbsp;</FONT><FONT SIZE=2>CATHY S. LOWE</FONT><FONT SIZE=2>&nbsp;&nbsp;&nbsp;<BR>
Name: Cathy S. Lowe<BR>
Title: SVP, Treasurer</FONT></TD>
</TR>
</TABLE>
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5</FONT></P>

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<BR>
<P><br><A NAME="06BHL1089_2">QuickLinks</A><br></P><!-- TOC_BEGIN -->
<UL>
<FONT SIZE=2><A HREF="#toc_kc1089_1">Exhibit 10.18</A></FONT><BR>
</UL>
<FONT SIZE=2><A HREF="#toc_kc1089_2">FIRST AMENDMENT TO OFFICE BUILDING LEASE</A></FONT><BR>

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