Common use of Market Rent Appraisal Procedure Clause in Contracts

Market Rent Appraisal Procedure. (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s Rent Notice, Landlord and Tenant shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord receives notice of Tenant’s rejection of Landlord’s proposed Market Rent (“Tenant’s Rejection Notice”), which date of receipt shall be within ten (10) days of Landlord’s delivery of Landlord’s Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser not later than ten (10) days after Landlord’s receipt of Tenant’s Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”). Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. (ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. (iii) Landlord and tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser or the Additional Appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ experience in the appraisal of similar office buildings in the San Diego area and shall be members of MAI or similar professional organizations of substantially equivalent or better reputation. Verus Lease v06 -5- February 2, 2005 (8:51 pm) (iv) If a single Mutual Appraiser is chosen, then such Mutual Appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the Option Term.

Market Rent Appraisal Procedure. (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s Rent Notice, Landlord and Tenant shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord receives notice of Tenant’s rejection of Landlord’s proposed Market Rent (“Tenant’s Rejection Notice”), which date of receipt shall be within ten (10) days of Landlord’s delivery of Landlord’s Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser not later than ten (10) days after Landlord’s receipt of Tenant’s Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”). Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. (ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. (iii) Landlord and tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser or the Additional Appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ experience in the appraisal of similar office buildings in the San Diego area and shall be members of MAI or similar professional organizations of substantially equivalent or better reputation. Verus Lease v06 -5- February 2, 2005 (8:51 pm). (iv) If a single Mutual Appraiser is chosen, then such Mutual Appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three thee (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the Option Term.

Market Rent Appraisal Procedure. (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s 's Rent Notice, Landlord and Tenant shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord receives notice of Tenant’s 's rejection of Landlord’s 's proposed Market Rent (“"Tenant’s 's Rejection Notice”"), which date of receipt shall be within ten (10) days of Landlord’s 's delivery of Landlord’s 's Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser single appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser not later than ten (10) days after Landlord’s 's receipt of Tenant’s 's Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”)appraiser. Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. (ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. (iii) Landlord and tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser single or the Additional Appraiserthird appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ ' experience in the appraisal of similar office buildings in the San Diego area and shall be members of professional organizations such as MAI or similar professional organizations of substantially equivalent or better reputation. Verus Lease v06 -5- February 2, 2005 (8:51 pm)equivalent. (iv) If a single Mutual Appraiser appraiser is chosen, then such Mutual Appraiser appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the Option Term.

Market Rent Appraisal Procedure. (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s 's Rent Notice, Landlord and Tenant shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five seven (57) days after the Landlord receives notice of Tenant’s 's rejection of Landlord’s 's proposed Market Rent (“"Tenant’s 's Rejection Notice”"), which date of receipt shall be within ten fifteen (1015) days of after Landlord’s 's delivery of Landlord’s 's Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser single appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser not later than ten fifteen (1015) days after Landlord’s 's receipt of Tenant’s 's Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”)appraiser. Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. If the two appraisers are unable to select the third appraiser within such five (5) day period, then Landlord and Tenant shall be entitled to apply to the MAI for the appointment of a third appraiser. (ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the applicable Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the applicable Option Term. (iii) Landlord and tenant Tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser single or the Additional Appraiserthird appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ ' experience in the appraisal of similar office buildings in the San Diego area and shall be members of professional organizations such as MAI or similar professional organizations of substantially equivalent or better reputation. Verus Lease v06 -5- February 2, 2005 (8:51 pm)equivalent. (iv) If a single Mutual Appraiser appraiser is chosen, then such Mutual Appraiser appraiser shall determine the Market Rent of the Premises for the first year of the applicable Option Term. Otherwise, the Market Rent of the Premises for the first year of the applicable Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the applicable Option Term.

Market Rent Appraisal Procedure. (i1) If Tenant Lessee rejects the Market Rent proposed by Landlord Lessor in Landlord’s Lessor's Rent Notice, Landlord Lessor and Tenant Lessee shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five (5) days after the Landlord Lessor receives notice of Tenant’s Lessee's rejection of Landlord’s Lessor's proposed Market Rent (“Tenant’s "Lessee's Rejection Notice”"), which date of receipt shall be within ten (10) days of Landlord’s Lessor's delivery of Landlord’s Lessor's Rent Notice. If Landlord Lessor and Tenant Lessee are unable to agree upon a Mutual Appraiser single appraiser within such time period, then Landlord Lessor and Tenant Lessee shall each appoint one appraiser not later than ten (10) days after Landlord’s Lessor's receipt of Tenant’s Lessee's Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”)appraiser. Landlord Lessor and Tenant Lessee shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. (ii2) If either Landlord Lessor or Tenant Lessee fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Option Term. (iii3) Landlord Lessor and tenant Lessee shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser single or the Additional Appraiserthird appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ ' experience in the appraisal of similar office buildings in the San Diego area and shall be members of professional organizations such as MAI or similar professional organizations of substantially equivalent or better reputationequivalent. Verus Lease v06 -5- February 2, 2005 (8:51 pm) (iv) If a single Mutual Appraiser appraiser is chosen, then such Mutual Appraiser appraiser shall determine the Market Rent of the Premises for the first year of the Option Term. Otherwise, the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In . I. The following inserts are hereby incorporated into the event that no two (2) appraisals are closer Lease where indicated by starred numerals in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the Option Term.Lease:

Market Rent Appraisal Procedure. (i) If Tenant rejects the Market Rent proposed by Landlord in Landlord’s 's Rent Notice, Landlord and Tenant shall attempt to agree in good faith upon a single appraiser (the “Mutual Appraiser”) not later than five seven (57) days after the Landlord receives notice of Tenant’s 's rejection of Landlord’s 's proposed Market Rent (“"Tenant’s 's Rejection Notice”"), which date of receipt shall be within ten fifteen (1015) days of after Landlord’s 's delivery of Landlord’s 's Rent Notice. If Landlord and Tenant are unable to agree upon a Mutual Appraiser single appraiser within such time period, then Landlord and Tenant shall each appoint one appraiser not later than ten fifteen (1015) days after Landlord’s 's receipt of Tenant’s 's Rejection Notice. Within five (5) days thereafter, the two appointed appraisers shall appoint a third appraiser (the “Additional Appraiser”)appraiser. Landlord and Tenant shall instruct the appraiser(s) to complete the determination of the Market Rent not later than fifteen (15) days after all appraisers have been appointed. If the two appraisers are unable to select the third appraiser within such five (5) day period, then Landlord and Tenant shall be entitled to apply to the MAI for the appointment of a third appraiser. (ii) If either Landlord or Tenant fails to appoint its appraiser within the prescribed time period, the single appraiser appointed within the prescribed time period shall determine the Market Rent of the Premises for the first year of the Second Option Term. If both parties fail to appoint appraisers within the prescribed time periods, then the first appraiser thereafter selected by a party shall determine the Market Rent of the Premises for the first year of the Second Option Term. (iii) Landlord and tenant Tenant shall each bear the cost of its own appraiser (including any single appraiser appointed in accordance with clause (ii) above) and the parties shall share equally the cost of the Mutual Appraiser single or the Additional Appraiserthird appraiser, if applicable. All appraisers so designated herein shall have at least five (5) years’ ' experience in the appraisal of similar office buildings in the San Diego area and shall be members of professional organizations such as MAI or similar professional organizations of substantially equivalent or better reputation. Verus Lease v06 -5- February 2, 2005 (8:51 pm)equivalent. (iv) If a single Mutual Appraiser appraiser is chosen, then such Mutual Appraiser appraiser shall determine the Market Rent of the Premises for the first year of the Second Option Term. Otherwise, the Market Rent of the Premises for the first year of the Second Option Term shall be the arithmetic average of two (2) of the three (3) appraisals which are closest (or identical) in amount, and the third appraisal shall be disregarded. In the event that no two (2) appraisals are closer in amount than any other two (2) appraisals, then the Market Rent of the Premises for the first year of the Option Term shall be the arithmetic average of all three (3) appraisals. Notwithstanding anything else contained herein, the Market Rent as so determined shall not be less than the Basic Annual Rent payable during the year preceding the Second Option Term.