Common use of Minimum Rental Clause in Contracts

Minimum Rental. (a) Tenant shall pay to Landlord as minimum rental for the Property, in advance, without deduction, offset, notice or demand on or before the Commencement Date and on or before the first day of each subsequent calendar month of the term of this Lease, the following amounts per month: Months Minimum Rental 1–12 $ 159,200 13–24 188,800 25–36 200,800 37–48 206,400 49–60 215,200 61–72 217,600 73–84 188,800 85–96 195,200 97–108 200,800 109–120 207,200 121–132 189,600 133–144 196,800 145–156 203.200 157–168 211,200 169–180 219,200 If the obligation to pay minimum rental hereunder commences on other than the first day of a calendar month or if the term of this Lease terminates on other than the last day of a calendar month, the minimum rental for such first or last month of the term of this Lease, as the case may be, shall be prorated based on the number of days the term of this Lease is in effect during such month. If an increase in minimum rental becomes effective on a day other than the first day of a calendar month, the minimum rental for that month shall be the sum of the two applicable rates, each prorated for the portion of the month during which such rate is in effect. (b) If Tenant properly exercises its right to extend the term of this Lease pursuant to Section 2.6 hereof, the minimum rental during the first extended term shall be equal to ninety-five percent (95%) of the fair market rental value of the Property (as defined below), including any rental increase provisions then customary in the relevant market for comparable commercial leases, determined as of the commencement of such extended term in accordance with this paragraph. Upon Landlord’s receipt of a proper notice of Tenant’s exercise of its option to extend the term of this Lease, the parties shall have sixty (60) days in which to agree on the fair market rental (including any applicable rental increase provisions) for the Property at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such fair market rental and rental increase provisions (if any), they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental and any applicable rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such sixty (60) day period, then within fifteen (15) days after the expiration of such period each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least five (5) years’ experience appraising similar commercial properties in northeastern San Mateo County to appraise and set the fair market rental and any applicable rental increase provisions for the Property at the commencement of the first extended term. If either party fails to appoint an appraiser within the allotted time, the single appraiser appointed by the other party shall be the sole appraiser. If an appraiser is appointed by each party and the two appraisers so appointed are unable to agree upon a fair market rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, they shall appoint a third qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, either party may upon not less than five (5) days’ notice to the other party, apply to the Presiding Judge of the San Mateo County Superior Court for the appointment of a third qualified appraiser. Each party shall bear its own legal fees in connection with appointment of the third appraiser and shall bear one-half of any other costs of appointment of the third appraiser and of such third appraiser’s fee. The third appraiser, however selected, shall be a person who has not previously acted for either party in any capacity. Within thirty (30) days after the appointment of the third appraiser, a majority of the three appraisers shall set the fair market rental and any applicable rental increase provisions for the first extended term and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rentals shall be added together and divided by three and the resulting quotient shall be the fair market rental for the first extended term, and (ii) the applicable rental increase provision shall be equal to the mathematical average (or the nearest reasonable approximation thereto) of the two rental increase provisions that are most closely comparable, which determinations shall be binding on the parties and shall be enforceable in any further proceedings relating to this Lease. For purposes of this Section 3.1(b), the “fair market rental” of the Property shall be determined with reference to the then prevailing market rental rates for properties in northeastern San Mateo County with shell and standard office, research and development improvements and site (common area) improvements comparable to those then existing in the Building and on the Property; no equipment or laboratory improvements shall be taken into account in determining such fair market rental. (c) If Tenant properly exercises its right to a second extended term of this Lease pursuant to Section 2.6 hereof, the minimum rental during such second extended term shall be determined in the same manner provided in the preceding paragraph for the first extended term, except that the determination shall be made as of the commencement of the second extended term. (d) The minimum rental amounts specified in this Section 3.1 are based upon an estimated area of 80,000 square feet for the Building. If the actual area of the Building, when completed, is greater or less than such estimated area, then the minimum rentals specified in this Section 3.1 shall be adjusted proportionately to the change in the area of the Building, measured in accordance with the BOMA standard most closely applicable to a two-story, single-tenant building of this nature.

Minimum Rental. (a) Tenant shall pay to Landlord as minimum rental for the PropertyPremises, in advance, without deduction, offset, notice or demand demand, on or before the Commencement Date and on or before the first day of each subsequent calendar month of the term of this Lease, the following amounts per month: Months Minimum Rental 1–12 1-12 $ 159,200 13–24 188,800 25–36 200,800 37–48 206,400 49–60 215,200 61–72 217,600 73–84 188,800 85–96 195,200 97–108 200,800 109–120 207,200 121–132 189,600 133–144 196,800 145–156 203.200 157–168 211,200 169–180 219,200 30,395.46 13-24 $ 37,921.17 25-36 $ 39,058.81 37-48 $ 40,230.57 49-60 $ 41,437.49 61-72 $ 42,680.61 73-84 $ 43,961.03 Notwithstanding the foregoing minimum rental schedule, if the Phase II Commencement Date occurs after the twelve month anniversary of the Commencement Date, then the minimum rental shall be reduced for the period from the twelve month anniversary of the Commencement Date through the Phase II Commencement Date by $6,613.85; that reduction will be increased by 3% every twelve months until the Phase II Premises Commencement Date occurs. If the obligation to pay minimum rental hereunder commences on other than the first day of a calendar month or if the term of this Lease terminates on other than the last day of a calendar month, the minimum rental for such first or last month of the term of this Lease, as the case may be, shall be prorated based on the number of days the term of this Lease is in effect during such month. If an increase in minimum rental becomes effective on a day other than the first day of a calendar month, the minimum rental for that month shall be the sum of the two applicable rates, each prorated for the portion of the month during which such rate is in effect. (b) The minimum rental amounts specified in this Section 3.1 are agreed on amounts and are not subject to adjustment if the actual area of the Premises, when completed, is greater or less than the estimated area of the Premises. (c) If Tenant properly exercises its right to extend the term of this Lease pursuant to Section 2.6 2.7 hereof, the minimum rental during the first extended term shall be equal to ninety-five percent (95%) of the fair market rental value of the Property Premises (as defined belowtheretofore improved under Section 2.4 and Exhibit C and taking into consideration that there will be no free rent, tenant improvement allowances or other similar concessions), including any cost-of-living adjustments or other rental increase provisions then customary in the relevant market for comparable commercial leases, determined as of the commencement of such extended term in accordance with this paragraph. Upon Landlord’s receipt of a proper notice of Tenant’s exercise of its option to extend the term of this Lease, or, if Tenant notifies Landlord of Tenant’s exercise of the option more than 240 days before the expiration of the initial term, beginning on the date which is 240 days before the expiration of the initial term, the parties shall have sixty (60) days in which to agree on the fair market rental Fair Market Rental (including any applicable rental increase provisions) for the Property Premises (as theretofore improved under Section 2.4 and Exhibit C) at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such fair market rental Fair Market Rental and rental increase provisions (if any), they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental and any applicable rental increase provisions. If the parties are unable to agree on such rental the Fair Market Rental (including any applicable rental increase provisions) within such sixty (60) day period, then within fifteen (15) days after the expiration of such period each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least five (5) years’ years experience appraising similar commercial properties in northeastern San Mateo County the city or county in which the Property is located or neighboring areas, to appraise and set the fair market rental Fair Market Rental and any applicable rental increase provisions for the Property Premises at the commencement of the first extended term. If either party fails to appoint an appraiser within the allotted time, the single appraiser appointed by the other party shall be the sole appraiser. If an appraiser is appointed by each party and the two appraisers so appointed are unable to agree upon a fair market rental Fair Market Rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, they shall appoint a third qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, either party may may, upon not less than five (5) days’ days notice to the other party, apply to the Presiding Judge of the San Mateo County Superior Court for the county in which the Property is located for the appointment of a third qualified appraiser. Each party shall bear its own legal fees in connection with appointment of the third appraiser and shall bear one-half of any other costs of appointment of the third appraiser and of such third appraiser’s fee. The third appraiser, however selected, shall be a person who has not previously acted for either party in any capacity. Within thirty (30) days after the appointment of the third appraiser, a majority of the three appraisers shall set the fair market rental and any applicable rental increase provisions for the first extended term and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rentals shall be added together and divided by three and the resulting quotient shall be the fair market rental Fair Market Rental for the first extended term, and (ii) the applicable rental increase provision shall be equal to the mathematical average (or the nearest reasonable approximation thereto) of the two rental increase provisions that are most closely comparable, which determinations shall be binding on the parties and shall be enforceable in any further proceedings relating to this Lease. For purposes of this Section 3.1(b), the “fair market rental” of the Property shall be determined with reference to the then prevailing market rental rates for properties in northeastern San Mateo County with shell and standard office, research and development improvements and site (common area) improvements comparable to those then existing in the Building and on the Property; no equipment or laboratory improvements shall be taken into account in determining such fair market rental. (c) If Tenant properly exercises its right to a second extended term of this Lease pursuant to Section 2.6 hereof, the minimum rental during such second extended term shall be determined in the same manner provided in the preceding paragraph for the first extended term, except that the determination shall be made as of the commencement of the second extended term. (d) The minimum rental amounts specified in this Section 3.1 are based upon an estimated area of 80,000 square feet for the Building. If the actual area of the Building, when completed, is greater or less than such estimated area, then the minimum rentals specified in this Section 3.1 shall be adjusted proportionately to the change in the area of the Building, measured in accordance with the BOMA standard most closely applicable to a two-story, single-tenant building of this nature.

Minimum Rental. (a) Tenant shall pay to Landlord as minimum rental for the PropertyPremises, in advance, without deduction, offset, notice or demand demand, on or before the Commencement Date and on or before the first day of each subsequent calendar month of the term of this Lease, the following amounts per month: for months 1-12, the sum of $43,750.00 per month; and for months 13-132, the adjusted rent determined under Section 3.1(b) hereof. Notwithstanding the foregoing provisions of this Section 3.1, however, at any time after month 12 of the term of this Lease, Tenant in its sole discretion may elect, by written notice to Landlord, to convert its minimum rental obligation for the period from the date of such notice through the remainder of the initial term of this Lease to the following amounts per month (as applicable): Months After Minimum Rental 1–12 Commencement Date (per month) ----------------- -------------- 13-24 $ 159,200 13–24 188,800 25–36 200,800 37–48 206,400 49–60 215,200 61–72 217,600 73–84 188,800 85–96 195,200 97–108 200,800 109–120 207,200 121–132 189,600 133–144 196,800 145–156 203.200 157–168 211,200 169–180 219,200 91,000.00 25-36 94,640.00 37-48 98,426.00 49-60 102,363.00 61-72 106,458.00 73-84 110,716.00 85-96 115,145.00 00-000 000,751.00 000-000 000,541.00 000-000 000,523.00 If the obligation to pay minimum rental hereunder commences on other than the first day of a calendar month or if the term of this Lease terminates on other than the last day of a calendar month, the minimum rental for such first or last month of the term of this Lease, as the case may be, shall be prorated based on the number of days the term of this Lease is in effect during such month. If an increase in minimum rental becomes effective on a day other than the first day of a calendar month, the minimum rental for that month shall be the sum of the two applicable rates, each prorated for the portion of the month during which such rate is in effect. (b) If and only if Tenant does not exercise its election under Section 3.1(a) to convert its minimum rental obligation to the rent schedule set forth in Section 3.1(a), then and only then shall the minimum rental hereunder be subject to adjustment as set forth in this Section 3.1(b). To the extent Tenant does not exercise such election as of the end of month 12 of the term of this Lease, then for so long as such election remains unexercised, minimum rental hereunder shall be subject to adjustment on the first anniversary of the Commencement Date, effective for months 13-24 of the term of this Lease, and on each subsequent anniversary of the Commencement Date until the expiration of the initial term of this Lease, effective for the succeeding twelve (12) months of the term of this Lease (each such anniversary being herein called an "Adjustment Date"), in accordance with the provisions of this paragraph (b). The base for computing such adjustment shall be (i) for the first such adjustment, the Consumer Price Index for All Urban Consumers, San Francisco/Oakland/San Xxxx Metropolitan Area, All Items (1982-84 = 100), produced by the United States Department of Labor, Bureau of Labor Statistics ("Index") which is published for the month two (2) months prior to the month in which the Commencement Date occurs and (ii) for each subsequent adjustment, the Extension Index (as hereinafter defined) used for the immediately preceding adjustment (each such Index identified in clause (i) or (ii) of this sentence, as applicable, being hereinafter called the "Beginning Index"). If the Index which is published for the month two (2) months prior to the month in which the Adjustment Date occurs (the "Extension Index") has increased over the Beginning Index, the minimum rental payable thereafter shall be increased to an amount equal to the minimum rental in effect immediately prior to such Adjustment Date multiplied by the lesser of (x) 1.05 or (y) a fraction, the numerator of which is equal to the sum of the Beginning Index for such Adjustment Date plus the product of 2.5 times the difference between the Extension Index for such Adjustment Date and the Beginning Index for such Adjustment Date, and the denominator of which is the Beginning Index for such Adjustment Date. If the Extension Index is not available until after the Adjustment Date, Tenant shall continue to pay the then prevailing minimum rental until the Extension Index is published, whereupon the adjustment provided in this paragraph shall be made retroactive to the Adjustment Date and any accumulated excess of the adjusted minimum rental over the amounts actually paid by Tenant since the Adjustment Date shall be paid promptly by Tenant to Landlord upon notice by Landlord to Tenant of the adjusted minimum rental. If the Index is changed so that the base year differs from the base year used as of the Commencement Date, the Index shall be converted in accordance with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued or substantially revised during the term of this Lease, any comparable governmental index or computation with which it is replaced (or, if none is available, any privately published index which is comparable in coverage and purpose) shall be designated by Landlord in order to obtain substantially the same result as would have been obtained if the Index had not been discontinued or revised. Upon any adjustment of the monthly minimum rental in accordance with the provisions of this paragraph, Landlord and Tenant shall immediately execute a written acknowledgement of the new minimum rental as adjusted, which acknowledgement shall be deemed to be incorporated herein by this reference; PROVIDED, however, that any failure of one or both parties to execute and deliver such a written acknowledgement shall not limit or affect in any way the other obligations of the parties with respect to the applicable rental adjustment or any subsequent rental adjustments required under this paragraph (b). (c) The minimum rental amounts specified in this Section 3.1 are based upon an estimated area of 70,000 square feet for the Premises (except during months 1-12, when the estimated area of the Premises is assumed to be 35,000 square feet, reflecting the estimated area of the first phase of the build-out of interior improvements in the Premises.) If the actual area of the Premises, when completed, is greater or less than such estimated area (PROVIDED that under no circumstances shall the first phase of construction of tenant improvements for the Premises be less than 35,000 square feet), then the minimum rentals specified in Sections 3.1(a) and/or (b), as applicable, shall be adjusted for each rental period in strict proportion to the ratio between the actual area of the Premises during the applicable period (which area shall be certified by Landlord's architect as being determined on the basis of measurement from the exterior faces of the exterior walls of the Building and from the dripline of any overhangs, and, for purposes of determining the amount of space occupied by Tenant during the first twelve months of the term of this Lease, shall be measured to the centerline of any interior demising walls) and the assumed area of 35,000 or 70,000 square feet, as applicable. If Tenant occupies more than 35,000 square feet of the Premises during any portion of the first twelve months of the term of this Lease (due to expansion, at Tenant's request, of the first phase of interior improvements, acceleration of Tenant's occupancy of the second phase of interior improvements or for any other reason), or if the actual area of the first phase of interior improvements is more than 35,000 square feet, then the minimum rental specified above for such portion of the first twelve months of the term of this Lease shall be adjusted in strict proportion to the ratio between the additional space occupied by Tenant in excess of 35,000 square feet or the actual area of the first phase of interior improvements (but in no event less than 35,000 square feet), as applicable, as determined on the basis of measurement set forth in the immediately preceding sentence hereof, and the assumed area of 35,000 square feet. If Landlord's substantial completion of the second phase of interior improvements occurs later than twelve months after the Commencement Date, then to the extent such delayed completion results from any cause other than delays attributable to acts or omissions of Tenant or its agents, employees or contractors, the minimum rentals specified in Sections 3.1(a) and/or (b), as applicable, shall be reduced, for the period from the beginning of the thirteenth month of the term of this Lease until the substantial completion and delivery by Landlord of the second phase of interior improvements, in strict proportion to the ratio between (i) the greater of the actual area of the space occupied by Tenant in the Premises or the actual area of the first phase of interior improvements, as determined in each case on the basis of measurement set forth in the second preceding sentence hereof, and (ii) the assumed area of 70,000 square feet. Measurements of building area under this paragraph shall be made initially by Landlord's architect, subject to review and approval by Tenant's architect. (d) The minimum rental amounts specified in Section 3.1(a) do not reflect any excess improvement costs that may be chargeable to Tenant in accordance with EXHIBIT C. If, upon completion of construction of the Premises, it is determined that there are any such excess improvement costs chargeable to Tenant in accordance with EXHIBIT C, then Tenant shall pay to Landlord as additional minimum rental for the Premises during the initial term of this Lease an amount each month equal to the amount necessary to amortize such excess improvement costs on a level payment basis over the initial term of this Lease with an imputed return at the rate of ten percent (10%) per annum. Upon determination of the amount of any additional minimum rental in accordance with the provisions of this paragraph, Landlord and Tenant shall incorporate such amount in the Acknowledgement of Lease Commencement in the form of EXHIBIT E or shall execute a separate written acknowledgement of such additional minimum rental, which acknowledgement shall be deemed to be incorporated herein by this reference; PROVIDED, however, that any failure of one or both parties to execute and deliver such a written acknowledgement shall not limit or affect in any way the other obligations of the parties with respect to the additional minimum rental (if any) due under this paragraph (d). Notwithstanding any other provisions of this Section 3.1, any additional minimum rental payable under this paragraph (d) shall NOT be subject to adjustment under Section 3.1(a), (b) or (c), regardless of any adjustments that may otherwise be appropriate for other minimum rental components under such paragraphs (a), (b) or (c). (e) If Tenant properly exercises its right to extend the term of this Lease pursuant to Section 2.6 2.7 hereof, the minimum rental during the first extended term shall be equal to ninety-five percent (95%) of the fair market rental value of the Property Premises (in "as defined belowis" condition as theretofore improved under Section 2.4 and EXHIBIT C, but without regard to any tenant improvement allowance for the extended term and without regard to the value of any improvements which were installed by Tenant at its own cost and which Tenant has the right to remove from the Premises pursuant to Article 7 hereof upon expiration of the Lease), including any cost-of-living adjustments or other rental increase provisions then customary in the relevant market for comparable commercial leases, determined as of the commencement of such extended term in accordance with this paragraph. Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the term of this Lease, the parties shall have sixty (60) days in which to agree on the fair market rental (including any applicable rental increase provisions) for the Property Premises (as theretofore improved under Section 2.4 and EXHIBIT C) at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such fair market rental and rental increase provisions (if any), they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental and any applicable rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such sixty (60) day period, then within fifteen (15) days after the expiration of such period each party, at its cost and by giving written notice to the other party, shall appoint a real estate appraiser with at least five (5) years’ years experience appraising similar commercial properties in northeastern San Mateo the City of Pleasanton or County to appraise and set the fair market rental and any applicable rental increase provisions for the Property at the commencement of the first extended termAlameda. If either party fails to appoint an appraiser within the allotted time, the single appraiser appointed by the other party shall be the sole appraiser. If an appraiser is appointed by each party and party, the two appraisers so appointed are unable to agree upon shall appoint a fair market rental third qualified appraiser within fifteen (and any appropriate rental increase provisions) within thirty (3015) days after the appointment of the second, they shall appoint a third qualified appraiser within ten (10) days after expiration later of such 30-day periodthe two appraisers to be appointed; if they the two appraisers are unable to agree upon a third appraiser, either party may may, upon not less than five (5) days’ days notice to the other party, apply to the Presiding Judge of the San Mateo County Superior Court for the county in which the Property is located for the appointment of a third qualified appraiser. Each party shall bear the fees and charges of the appraiser appointed by such party, shall bear its own legal fees in connection with appointment of the third appraiser and shall bear one-half of any other costs of appointment of the third appraiser and of such third appraiser’s 's fee. The third appraiserEach appraiser designated under this paragraph, however selected, shall be a person who has not previously acted for either party (or for any person or entity which controls, is controlled by or is under common control with either party) in any capacitycapacity within five (5) years prior to the date of such designation hereunder. Within thirty (30) days after the appointment of the third appraiser, a majority of the three appraisers shall set the fair market rental and any applicable rental increase provisions for the first extended term and shall so notify the parties. If a majority are unable to agree within the allotted time, each of the three appraisers at the end of such 30-day period shall submit his or her written determination of the fair market rental and any applicable rental increase provisions and (i) the three appraised fair market rentals shall be added together and divided by three and the resulting quotient shall be the fair market rental for the first extended termterm (except that any fair market appraisal that differs by more than 10% from the "middle" appraisal shall be disregarded and the averaging process shall be adjusted accordingly to reflect only the remaining appraisal(s)), and (ii) the applicable rental increase provision (if any) shall be equal to the mathematical average (or the nearest reasonable approximation thereto) of the two rental increase provisions that are most closely comparable, which determinations shall be binding on the parties and shall be enforceable in any further proceedings relating to this Lease. For purposes of this Section 3.1(b), the “fair market rental” of the Property shall be determined with reference to the then prevailing market rental rates for properties in northeastern San Mateo County with shell and standard office, research and development improvements and site (common area) improvements comparable to those then existing in the Building and on the Property; no equipment or laboratory improvements shall be taken into account in determining such fair market rental. (cf) If Tenant properly exercises its right to a second extended term of this Lease pursuant to Section 2.6 2.7 hereof, the minimum rental during such second extended term shall be determined in the same manner provided in the preceding paragraph (e) of this Section for the first extended term, except that (i) the determination shall be made as of the commencement of the second extended term. term and (dii) The minimum the applicable percentage of fair market rental amounts specified in under clause (ii) of the first sentence of paragraph (e) of this Section 3.1 are based upon an estimated area of 80,000 square feet for the Building. If the actual area of the Building, when completed, is greater or less than such estimated area, then the minimum rentals specified in this Section 3.1 shall be adjusted proportionately to the change in the area of the Building, measured in accordance with the BOMA standard most closely applicable to a twoone hundred percent (100%) rather than ninety-story, single-tenant building of this naturefive percent (95%).

Minimum Rental. (a) Tenant shall pay to Landlord as minimum rental for the Property, in advance, without deduction, offset, notice or demand demand, on or before the Commencement Date and on or before the first day of each subsequent calendar month of the term of this Lease, the following amounts per month: Months Minimum Rental 1–12 $ ------ -------------- 1 - 12 $159,200 13–24 13 - 24 188,800 25–36 25 - 36 200,800 37–48 37 - 48 206,400 49–60 49 - 60 215,200 61–72 61 - 72 217,600 73–84 73 - 84 188,800 85–96 85 - 96 195,200 97–108 97 - 108 200,800 109–120 109 - 120 207,200 121–132 121 - 132 189,600 133–144 133 - 144 196,800 145–156 203.200 157–168 145 - 156 203,200 157 - 168 211,200 169–180 169 - 180 219,200 If the obligation to pay minimum rental hereunder commences on other than the first day of a calendar month or if the term of this Lease terminates on other than the last day of a calendar month, the minimum rental for such first or last month of the term of this Lease, as the case may be, shall be prorated based on the number of days the term of this Lease is in effect during such month. If an increase in minimum rental becomes effective on a day other than the first day of a calendar month, the minimum rental for that month shall be the sum of the two applicable rates, each prorated for the portion of the month during which such rate is in effect. (b) If Tenant properly exercises its right to extend the term of this Lease pursuant to Section 2.6 hereof, the minimum rental during the first extended term shall be equal to ninety-five percent (95%) of the fair market rental value of the Property (as defined below), including any rental increase provisions then customary in the relevant market for comparable commercial leases, determined as of the commencement of such extended term in accordance with this paragraph. Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the term of this Lease, the parties shall have sixty (60) days in which to agree on the fair market rental (including any applicable rental increase provisions) for the Property at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such fair market rental and rental increase provisions (if any), they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental and any applicable rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such sixty (60) day period, then within fifteen (15) days after the expiration of such period each party, at its cost and by giving notice to the other party, shall appoint a real estate appraiser with at least five (5) years’ years experience appraising similar commercial properties in northeastern San Mateo County to appraise and set the fair market rental and any applicable rental increase provisions for the Property at the commencement of the first extended term. If either party fails to appoint an appraiser within the allotted time, the single appraiser appointed by the other party shall be the sole appraiser. If an appraiser is appointed by each party and the two appraisers so appointed are unable to agree upon a fair market rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, they shall appoint a third qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, either party may may, upon not less than five (5) days’ days notice to the other party, apply to the Presiding Judge of the San Mateo County Superior Court for the appointment of a third qualified appraiser. Each party shall bear its own legal fees in connection with appointment of the third appraiser and shall bear one-half of any other costs of appointment of the third appraiser and of such third appraiser’s 's fee. The third appraiser, however selected, shall be a person who has not previously acted for either party in any capacity. Within thirty (30) days after the appointment of the third appraiser, a majority of the three appraisers shall set the fair market rental and any applicable rental increase provisions for the first extended term and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rentals shall be added together and divided by three and the resulting quotient shall be the fair market rental for the first extended term, and (ii) the applicable rental increase provision shall be equal to the mathematical average (or the nearest reasonable approximation thereto) of the two rental increase provisions that are most closely comparable, which determinations shall be binding on the parties and shall be enforceable in any further proceedings relating to this Lease. For purposes of this Section 3.1(b), the “"fair market rental” " of the Property shall be determined with reference to the then prevailing market rental rates for properties in northeastern San Mateo County with shell and standard office, research and development improvements and site (common area) improvements comparable to those then existing in the Building and on the Property; no equipment or laboratory improvements shall be taken into account in determining such fair market rental. (c) If Tenant properly exercises its right to a second extended term of this Lease pursuant to Section 2.6 hereof, the minimum rental during such second extended term shall be determined in the same manner provided in the preceding paragraph for the first extended term, except that the determination shall be made as of the commencement of the second extended term. (d) The minimum rental amounts specified in this Section 3.1 are based upon an estimated area of 80,000 square feet for the Building. If the actual area of the Building, when completed, is greater or less than such estimated area, then the minimum rentals specified in this Section 3.1 shall be adjusted proportionately to the change in the area of the Building, measured in accordance with the BOMA standard most closely applicable to a two-story, single-tenant building of this nature.