Common use of Basic Annual Rent Clause in Contracts

Basic Annual Rent. Initial Annual (and Monthly Rental Installments) of Basic Annual Rent for the Additional Premises (“Additional Premises Basic Annual Rent”) only (starting as of the Additional Premises Commencement Date (as defined below)) shall be as follows: Per Rentable s.f. Rentable s.f. Annually Total Annual Total Monthly 91,368 $ 28 $ 2,558,304 $ 213,192 2 Starting on the Additional Premises Commencement Date (as defined below) and continuing throughout the Term, Tenant shall pay to Landlord the Additional Premises Basic Annual Rent as set forth in this Section. The Additional Premises Basic Annual Rent shall be paid in equal monthly installments, each in advance on the first day of each and every calendar month during the Term. The Basic Annual Rent for the Additional Premises shall be subject to an annual upward adjustment of two and one-half percent (2.5%) of the then-current Basic Annual Rent (as adjusted under this Section 4). The first such adjustment shall become effective commencing on the first (1st) annual anniversary of the Additional Premises Commencement Date. Subsequent adjustments shall become effective on every successive annual anniversary of the Additional Premises Commencement Date (except the first day of any Term extension pursuant to an Option) for so long as the Amended Lease continues in effect. In addition to Additional Premises Basic Annual Rent, Tenant shall pay to Landlord as Additional Rent at times specified in the Amended Lease: (a) Tenant’s Pro Rata Share of Operating Expenses as provided in Article 8 of the Amended Lease with respect to the Additional Premises and (b) any other amounts that Tenant assumes or agrees to pay under the provisions of the Amended Lease that are owed to Landlord, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of the Amended Lease to be performed by Tenant, after notice and the lapse of any applicable cure periods.

Basic Annual Rent. Initial Annual For purposes of this Lease, the "Prevailing Market Rent" shall mean the rental rate prevailing in the Del Mar Heights office market as of the date which is six (6) months prior to the expiration of the Lease Term, for renewals of space of equivalent quality, size, utility and Monthly Rental Installments) location, and in buildings with comparable construction and amenities, with the length of the Extension Term, rent concessions then available in the Del Mar Heights office market for renewal tenants, and the credit standing of the Tenant to be taken into account. In no event however shall the Prevailing Market Rent for each Lease Year of the Extension Term be less than the Basic Annual Rent payable by Tenant for the Additional Premises last twelve (“Additional Premises 12) months of the initial Lease Term. If Tenant has timely exercised the option, Landlord shall notify Tenant in writing of the proposed new, Basic Annual Rent determined by Landlord for the Extension Term at least ninety (90) days prior to the Commencement Date of the Extension Term. Unless Tenant objects to the amount determined by Landlord within fifteen (15) days after receipt of such notice, the amount stated in such notice shall be the new Basic Annual Rent”. If Tenant objects to Landlord's proposal, then the new Basic Annual Rent shall be determined by an MAI Appraiser chosen by Landlord and approved by Tenant. If Tenant does not disapprove of Landlord's choice of an appraiser by delivery of written notice of disapproval naming a Tenant's appraiser within five (5) only days after written notice of such choice by Landlord, then Landlord's appraiser shall be deemed to be approved by Tenant. If Tenant does disapprove of Landlord's choice of an appraiser within the said five (starting 5) days, then Tenant's notice of disapproval shall name an MAI Appraiser designated by Tenant. Within ten (10) days after the date of Tenant's notice of disapproval, Landlord's appraiser and Tenant's appraiser together shall select a neutral third MAI Appraiser. If they are unable to agree on a third MAI Appraiser within the said ten (10) days, then upon the application of either party, the third MAI Appraiser shall be designated by the Presiding Judge of the Superior Court the County where the property is located. Landlord's appraiser and Tenant's appraiser each shall determine a Prevailing Market Rent, to be submitted in writing to Landlord, Tenant, and the third MAI Appraiser within thirty (30) days after the date of Tenant's notice of disapproval. Within fifteen (15) days after receipt of those two appraisals, the third MAI Appraiser shall select one or the other of those two appraisals, and the one so selected shall be and become the Prevailing Market Rent effective as of the Additional Premises Commencement Date (as defined below)) commencement date of the Extension Term. The cost of the third MAI Appraiser shall be as follows: Per Rentable s.fsplit equally by Landlord and Tenant, and Landlord and Tenant shall each be responsible for the fees and costs of the appraiser which it appoints. Rentable s.f. Annually Total If the Basic Annual Total Rent shall not have been determined by the commencement date of the Extension Term, then until it is determined, Tenant shall pay Basic Monthly 91,368 $ 28 $ 2,558,304 $ 213,192 2 Starting on Rent when due during the Additional Premises Commencement Date Extension Term determined using the Basic Annual Rent payable for the twelve (as defined below12) month period immediately preceding commencement of the Extension Term, and continuing throughout when the Termactual adjusted Basic Annual Rent is determined, Tenant shall pay to Landlord the Additional Premises Basic Annual Rent as set forth in this Section. The Additional Premises Basic Annual Rent shall be paid in equal monthly installments, each in advance on the first day of each and every calendar month during the Term. The Basic Annual Rent any additional rent due for the Additional Premises shall be subject to an annual upward adjustment of two and one-half percent (2.5%) of the then-current Basic Annual Rent (as adjusted under this Section 4). The first such adjustment shall become effective commencing on the first (1st) annual anniversary of the Additional Premises Commencement Date. Subsequent adjustments shall become effective on every successive annual anniversary of the Additional Premises Commencement Date (except the first day of any Term extension pursuant to an Option) for so long as the Amended Lease continues in effect. In addition to Additional Premises Basic Annual Rent, Tenant shall pay to Landlord as Additional Rent at times specified months which have elapsed in the Amended Lease: (a) Tenant’s Pro Rata Share of Operating Expenses as provided in Article 8 of Extension Term, or Landlord shall credit any excess payment for the Amended Lease with respect elapsed months to the Additional Premises and (b) any other amounts that Tenant assumes or agrees to pay under the provisions of the Amended Lease that are owed to Landlord, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of the Amended Lease to be performed by Tenant, after notice and the lapse of any applicable cure periodsnext Basic Monthly Rent becoming due.

Basic Annual Rent. Initial Tenant agrees to pay to Landlord as basic annual rent for the Leased Premises at such place as Landlord may designate, without prior demand therefore and without any deduction or set off whatsoever an annual amount equal to the Cost of Construction multiplied by 8.75% (“Basic Annual Rent.”) The Basic Annual Rent shall be due and payable in twelve (12) equal monthly installments to be paid in advance on or before the first day of each calendar month during the Term. Commencing on the first anniversary of the Rent Commencement Date and Monthly Rental Installments) on each anniversary of the Rent Commencement Date thereafter, Basic Annual Rent shall escalate at the Escalation Rate. In the event the Rent Commencement Date occurs on a day other than the first day of a calendar month, then rent shall be paid on the Rent Commencement Date for the initial fractional calendar month prorated on a per diem basis. Prior to the Rent Commencement Date, Landlord shall deliver notice to Tenant, certified as true and accurate, of Landlord’s calculation of Basic Annual Rent for (the Additional Premises (“Additional Premises Basic Annual RentRent Notice”). Tenant acknowledges that all costs and expenses comprising the Cost of Construction which are used in the calculation of Basic Annual Rent may not be available at the time Landlord delivers the Basic Annual Rent Notice, therefore, Landlord shall have the right, for a period of six (6) months after Landlord delivers the Basic Annual Rent Notice, to deliver written notice to Tenant (the “Adjusted Basic Annual Rent Notice”) only (starting adjusting Basic Annual Rent to reflect the actual Cost of Construction. If Landlord delivers an Adjusted Basic Annual Rent Notice, Tenant shall pay Basic Annual Rent as set forth in the Adjusted Basic Annual Rent Notice on the first day of the Additional Premises Commencement Date (as defined below)) shall be as follows: Per Rentable s.f. Rentable s.f. Annually Total month immediately following Tenant’s receipt of the Adjusted Basic Annual Total Monthly 91,368 $ 28 $ 2,558,304 $ 213,192 2 Starting Rent Notice and, in addition, on the Additional Premises Commencement Date (as defined below) and continuing throughout first day of the Termmonth following Tenant’s receipt of an Adjusted Basic Annual Rent Notice, Tenant shall pay to Landlord the Additional Premises aggregate incremental difference in Basic Annual Rent for any prior months in the event Basic Annual Rent as set forth in this Section. The Additional Premises the Adjusted Basic Annual Rent shall be paid in equal monthly installments, each in advance on Notice is greater than the first day of each and every calendar month during the Term. The Basic Annual Rent for set forth in the Additional Premises shall be subject to an annual upward adjustment of two and one-half percent (2.5%) of the then-current Basic Annual Rent (as adjusted under this Section 4)Notice. The first such adjustment shall become effective commencing on If the first (1st) annual anniversary of the Additional Premises Commencement Date. Subsequent adjustments shall become effective on every successive annual anniversary of the Additional Premises Commencement Date (except the first day of any Term extension pursuant to an Option) for so long as the Amended Lease continues in effect. In addition to Additional Premises Adjusted Basic Annual Rent, Rent Notice indicates that the Basic Annual Rent paid by Tenant shall pay to Landlord as Additional for any prior months exceeded the Basic Annual Rent at times specified set forth in the Amended Lease: Adjusted Basic Rent Notice, Landlord, at its election, shall within thirty (30) days of Tenant’s receipt of such Adjusted Basic Annual Rent Notice, either (a) pay the amount of such excess to Tenant’s Pro Rata Share of Operating Expenses as provided in Article 8 of the Amended Lease with respect to the Additional Premises and , or (b) any other amounts that Tenant assumes or agrees apply the incremental difference in Basic Annual Rent paid pursuant to pay under the provisions Basic Annual Rent Notice against future installments of the Amended Lease that are owed to Landlord, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of the Amended Lease to be performed by Tenant, after notice and the lapse of any applicable cure periodsBasic Annual Rent until such excess is applied in full.

Basic Annual Rent. Initial Annual Commencing on the earlier of (and Monthly Rental Installmentsi) of Basic Annual Rent for sixty (60) days after the Additional Premises (“Additional Premises Basic Annual Rent”) only (starting as of the Additional Premises Commencement Date (which 60-day period is hereinafter referred to as defined belowthe “Fit-Up Period”) or (ii) the date Tenant commences operating its business in the Building (such earlier date being herein the “Rent Commencement Date”)) shall be as follows: Per Rentable s.f. Rentable s.f. Annually Total Annual Total Monthly 91,368 $ 28 $ 2,558,304 $ 213,192 2 Starting on the Additional Premises Commencement Date (as defined below) and continuing throughout the Term, Tenant shall pay to Landlord during the Additional Premises Lease Term “Basic Annual Rent Rent” payable in equal monthly installments as set forth in this Section. The Additional Premises Basic Annual Rent shall be paid in equal monthly installmentsbelow without any deductions, each recoupments, or set-offs, and without demand, in advance on the first day of each and every calendar month in each lease year during the Lease Term; provided, however, that if the Lease Term shall commence on a day other than the first day of a month, Tenant shall pay on the Rent Commencement Date for the fractional part of a month at the beginning of the term, a prorated amount of one month’s rent. Notwithstanding the foregoing, in the event that Tenant occupies only a portion of the Building during the Fit-Up Period, then Tenant shall pay to Landlord, for the balance of the Fit-Up Period only, a percentage of the Basic Annual Rent and Additional Rent otherwise payable by Tenant during such period, which percentage shall be equal to the percentage of the Building occupied by Tenant during such period. In any event, upon the expiration of the Fit-Up Period, Tenant shall be obligated to commence payment of Basic Annual Rent and Additional Rent in their full amounts. Subject to adjustment pursuant to Sections 1(d) and 1(e) above and Rider No. 4 below, the Basic Annual Rent for each year of the original term shall be determined by multiplying the Rentable Area of Leased Premises, as hereinafter defined, by the following amounts: 1st lease year $11.50 2nd lease year $11.50 3rd lease year $11.50 4th lease year $12.34 5th lease year $12.34 6th lease year $12.34 7th lease year $13.25 8th lease year $13.25 9th lease year $13.25 10th lease year $13.25 The Basic Annual Rent for the Additional Premises shall be subject to an annual upward adjustment of two and one-half percent (2.5%) of the then-current Basic Annual Rent (as adjusted under this Section 4). The first such adjustment shall become effective commencing on the first (1st) annual anniversary of the Additional Premises Commencement Date. Subsequent adjustments shall become effective on every successive annual anniversary of the Additional Premises Commencement Date (except the first day of any Term extension pursuant to an Option) for so long as the Amended Lease continues in effect. In addition to Additional Premises Basic Annual Rent, Tenant shall pay to Landlord as Additional Rent at times specified confirmed in the Amended Lease: (a) Tenant’s Pro Rata Share of Operating Expenses as provided in Article 8 of the Amended Lease with respect to the Additional Premises and (b) any other amounts that Tenant assumes or agrees to pay under the provisions of the Amended Lease that are owed to Landlord, including, without limitation, any and all other sums that may become due by reason of any default of Tenant or failure on Tenant’s part to comply with the agreements, terms, covenants and conditions of the Amended Lease to be performed by Tenant, after notice and the lapse of any applicable cure periodsCommencement Agreement.