Common use of Rental Amounts During First Extended Term Clause in Contracts

Rental Amounts During First Extended Term. 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 year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value (as defined below), 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 thirty (30) days in which to agree on the Fair Market Rental at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rental, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental (including the indexed amounts applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv)). If the parties are unable to agree on such rental within such thirty (30) day period, then within thirty (30) 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 the County in which the Real Property is located to appraise and set the Fair Market Rental for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d). 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 within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then either party may, upon not less than five (5) days notice to the other party, apply to the Presiding Judge of the Superior Court of the County in which the Real 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, the third appraiser shall set the Fair Market Rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties, which determination 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(d), the “Fair Market Rental” of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of San Xxxxxx with improvements and common area improvements comparable to those then existing in the Premises and paid for by Landlord.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Premises (as defined below), including any cost-of-living adjustments or other rental increase provisions then customary in the City of South San Francisco 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 term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental initial fair market rental (including any applicable rental increase provisions) for the Premises at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial 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 (including the indexed amounts and any applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv))rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(c). 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 an initial fair market rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 '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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, then (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial 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 determination 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(d3.1(c), the “Fair Market Rental” "fair market rental" of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises and paid in the Center, taking into account for such determination all tenant improvements then existing in the Premises (including, but not limited to, all fixtures, equipment and laboratory improvements in place in the Premises on the Commencement Date) other than alterations, improvements or equipment which were constructed or installed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Premises at the expiration of this Lease pursuant to the provisions of Article 9 hereof.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental for each Building as to which Tenant has elected to extend during the first year of the first extended term shall be equal to one hundred percent (100%) of the initial fair market rental value (as defined below)) for the applicable Building, determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and as of the beginning of each subsequent year of the first extended term such Minimum Rental shall be increased by an amount equal to the greater of (i) three percent (3%) of the Minimum Rental in effect during the immediately preceding lease year or (ii) the fair market rental escalation percentage (as defined below) for the applicable Building, determined as of the commencement of such extended term in accordance with this Section 3.1(b). Upon Landlord’s 's receipt of a proper timely notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental escalation percentage for the Buildings as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial fair market rental and rental escalation percentage, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental Minimum Rental during the first year of the extended term (including determined in accordance with this Section 3.1(b)) and the indexed amounts applicable during subsequent years annually increased Minimum Rental for the balance of the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such initial fair market rental and/or applicable rental escalation percentage within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise initial fair market rental and set the Fair Market Rental applicable rental escalation percentage for the Premises at Buildings as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the initial fair market rental and/or the applicable rental escalation percentage within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and the applicable rental escalation percentage for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial fair market rental for the first extended term, and (ii) the three appraised fair market rental escalation percentages shall be added together and divided by three and the resulting quotient shall be the fair market rental escalation percentage used in determining the applicable rental escalation percentage for purposes of clause (ii) of the first sentence of this Section 3.1(b), which determination 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(d3.1(b), the “Fair Market Rental” of "fair market rental" and "fair market rental escalation percentage" for the Premises respective Buildings shall be determined as follows: (x) in the case of a renewal term for any of the Buildings, with reference to the then prevailing market rental rates for properties in the City of northeastern San Xxxxxx Mateo County with shell and standard office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises applicable Building and paid on the Property, provided that no equipment or laboratory improvements shall be taken into account in determining such fair market rental; and (y) in the case of a lease or renewal term for any other building leased by Tenant under terms based on the terms of this Lease (for example, any building leased by Tenant pursuant to any of the provisions of Article 6 hereof, except to the extent any different basis of determination is specified in Landlord's First Refusal Notice or First Offer Notice, if applicable, under such Article 6), with reference to the then prevailing market rental rates and then prevailing market rental escalation provisions for leases of comparable length of properties in the South San Francisco market with shell and office, research and development improvements and site (common area) improvements comparable to those then existing in the applicable building and on the Property, taking into account for such determination all tenant improvements then existing in the applicable building (including, but not limited to, equipment and laboratory improvements installed as part of the initial construction of tenant improvements in such building).

Rental Amounts During First Extended Term. 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 year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value (as defined below), 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 thirty (30) days in which to agree on the Fair Market Rental at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rental, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental (including the indexed amounts applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv)). If the parties are unable to agree on such rental within such thirty (30) day period, then within thirty (30) 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 the County in which the Real Property is located to appraise and set the Fair Market Rental for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d). 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 within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then either party may, upon not less than five (5) days notice to the other party, apply to the Presiding Judge of the Superior Court of the County in which the Real 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 '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, the third appraiser shall set the Fair Market Rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties, which determination 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(d), the “Fair Market Rental” "FAIR MARKET RENTAL" of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of San Xxxxxx with improvements and common area improvements comparable to those then existing in the Premises and paid for by Landlord.

Rental Amounts During First Extended Term. If Tenant ----------------------------------------- properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Premises (as defined below), including any cost-of-living adjustments or other rental increase provisions then customary in the City of South San Francisco 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 term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental initial fair market rental (including any applicable rental increase provisions) for the Premises at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial 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 (including the indexed amounts and any applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv))rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(c). 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 an initial fair market rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 '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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, then (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial 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 determination 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(d3.1(c), the “Fair Market Rental” "fair market rental" of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises and paid in the Center, taking into account for such determination all tenant improvements then existing in the Premises (including, but not limited to, all fixtures, equipment and laboratory improvements in place in the Premises on the Commencement Date) other than alterations, improvements or equipment which were constructed or installed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Premises at the expiration of this Lease pursuant to the provisions of Article 9 hereof.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Building (as defined below), determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and during each subsequent year of the first extended term shall be increased in accordance with the rental increase provisions customary in the City of South San Francisco for comparable commercial leases for office, laboratory and research and development projects as of the commencement of the first extended term (which rental increase provisions shall be determined as of the commencement of the first extended term in accordance with this Section 3.1(b), but shall in no event provide for an annual increase of less than [***] percent ([***]) of the minimum rental in effect during the immediately preceding lease year). Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental increase provisions for the Building as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalfair market rental and rental increase provisions, they shall execute an amendment to this Lease stating the amount of the applicable initial minimum monthly rental (including and the indexed amounts applicable during subsequent years of rental increase provisions for the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such fair market rental and rental increase provisions within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial [***] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise fair market rental and set the Fair Market Rental applicable rental increase provisions for the Premises at Building as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the fair market rental and applicable rental increase provisions within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set determine the Fair Market Rental fair market rental and applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rental amounts shall be added together and divided by three and the resulting quotient shall be the initial 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 (but in no event less than [***] percent ([***]) per year over the minimum rent in effect in the immediately preceding lease year), which determination 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(d3.1(b), the “Fair Market Rental” "FAIR MARKET RENTAL" of the Premises Building shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Building and paid on the Property, taking into account for such determination all tenant improvements then existing in the Building (including, but not limited to, equipment and laboratory improvements installed as part of the initial Tenant Improvements pursuant to Section 5.1 and the Workletter) OTHER THAN improvements or alterations which were constructed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Building at the expiration of this Lease pursuant to the provisions of Article 9 hereof.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Buildings (as defined below), determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(c), and as of the beginning of each subsequent year of the first extended term shall be increased by an amount equal to four percent (4%) of the minimum rental in effect during the immediately preceding lease year. Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental for the Buildings as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial fair market rental, they shall execute an amendment to this Lease stating the amount of the applicable initial minimum monthly rental (including and the indexed amounts applicable during subsequent years of annually increased monthly rental for the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such initial fair market rental within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise and set the Fair Market Rental initial fair market rental for the Premises at Buildings as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(c). 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 the initial fair market rental within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then either party may, upon not less than five (5) days notice to the other party, apply to the Presiding Judge of the Superior Court of the County in which the Real 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, the third appraiser shall set the Fair Market Rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties, which determination 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(d), the “Fair Market Rental” of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of San Xxxxxx with improvements and common area improvements comparable to those then existing in the Premises and paid for by Landlord.ten

Rental Amounts During First Extended Term. If Tenant properly ----------------------------------------- exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred ninety percent (10090%) of the fair market rental value of the Buildings (as defined below), determined as of the commencement of such extended term in accordance with this paragraph, and during each subsequent year of the first extended term shall be equal to one hundred three percent (103%) of the minimum rental in effect during the immediately preceding year of such extended term. Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental fair market rental for the Buildings at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalfair market rental, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental (including the indexed amounts applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv)above). If the parties are unable to agree on such rental within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental fair market rental for the Premises Buildings at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 '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 third appraiser three appraisers shall set the Fair Market Rental fair market rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, 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, which determination 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(d3.1(b), the “Fair Market Rental” "fair market rental" of the Premises Buildings shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Buildings and on the Property, taking into account for such determination all tenant improvements constructed at Landlord's expense and paid for by LandlordLandlord or by Tenant through additional rent (including, but not limited to, equipment and laboratory improvements installed as part of the initial Tenant Improvements pursuant to Section 5.1 and Exhibit C except to the extent, if any, paid for by Tenant in cash), but excluding from such determination any Tenant Improvements constructed by Tenant at its sole expense or paid for by Tenant in cash.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental for each Building as to which Tenant has elected to extend during the first year of the first extended term shall be equal to one hundred percent (100%) of the initial fair market rental value (as defined below)) for the applicable Building, determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and as of the beginning of each subsequent year of the first extended term such Minimum Rental shall be increased by an amount equal to the greater of (i) three percent (3%) of the Minimum Rental in effect during the immediately preceding lease year or (ii) the fair market rental escalation percentage (as defined below) for the applicable Building, determined as of the commencement of such extended term in accordance with this Section 3.1(b). Upon Landlord’s receipt of a proper timely notice of Tenant’s exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental escalation percentage for the Buildings as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial fair market rental and rental escalation percentage, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental Minimum Rental during the first year of the extended term (including determined in accordance with this Section 3.1(b)) and the indexed amounts applicable during subsequent years annually increased Minimum Rental for the balance of the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such initial fair market rental and/or applicable rental escalation percentage within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise initial fair market rental and set the Fair Market Rental applicable rental escalation percentage for the Premises at Buildings as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the initial fair market rental and/or the applicable rental escalation percentage within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and the applicable rental escalation percentage for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial fair market rental for the first extended term, and (ii) the three appraised fair market rental escalation percentages shall be added together and divided by three and the resulting quotient shall be the fair market rental escalation percentage used in determining the applicable rental escalation percentage for purposes of clause (ii) of the first sentence of this Section 3.1(b), which determination 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(d3.1(b), the “Fair Market Rentalfair market rental” of and “fair market rental escalation percentage” for the Premises respective Buildings shall be determined as follows: (x) in the case of a renewal term for any of the Buildings, with reference to the then prevailing market rental rates for properties in the City of northeastern San Xxxxxx Mateo County with shell and standard office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises applicable Building and paid on the Property, provided that no equipment or laboratory improvements shall be taken into account in determining such fair market rental; and (y) in the case of a lease or renewal term for any other building leased by Tenant under terms based on the terms of this Lease (for example, any building leased by Tenant pursuant to any of the provisions of Article 6 hereof, except to the extent any different basis of determination is specified in Landlord’s First Refusal Notice or First Offer Notice, if applicable, under such Article 6), with reference to the then prevailing market rental rates and then prevailing market rental escalation provisions for leases of comparable length of properties in the South San Francisco market with shell and office, research and development improvements and site (common area) improvements comparable to those then existing in the applicable building and on the Property, taking into account for such determination all tenant improvements then existing in the applicable building (including, but not limited to, equipment and laboratory improvements installed as part of the initial construction of tenant improvements in such building).

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) [...*...] of the fair market rental value of the Initial Building (as defined below), including any rental increase provisions then customary in the City of South San Francisco for comparable commercial leases for office, laboratory and research and development projects, 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 Xxxxxx's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental fair market rental (including any applicable rental increase provisions) for the Initial Building at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalfair 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 (including the indexed amounts and any applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv))rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental fair market rental and any applicable rental increase provisions for the Premises Initial Building at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(e). If either party fails to appoint an appraiser within the allotted time, the --------------------------- *CONFIDENTIAL TREATMENT REQUESTED 9 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, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after the expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 '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 third appraiser three appraisers shall set the Fair Market Rental fair market rental and any applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, 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 thereof) of the two rental increase provisions that are most nearly comparable, which determination 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(d3.1(e), the “Fair Market Rental” "fair market rental" of the Premises Initial Building shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell, office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Initial Building and on the Property, including (without limitation) the Improvements constructed by Landlord pursuant to Section 5.1 and Exhibit C, the Tenant Improvements constructed by Tenant pursuant to Section 5.1 and Exhibit C and any and all other alterations, additions and improvements (including, but not limited to, equipment and laboratory improvements, but excluding any equipment installed by Tenant after substantial completion of Tenant's initial build-out of the Tenant Improvements pursuant to Section 5.1 and Exhibit C) constructed by or for Tenant, whether at Landlord's or Tenant's expense and whether paid for by Landlordin cash or through additional rent or financed in any other manner.

Rental Amounts During First Extended Term. 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 year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value (as defined below), 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 thirty (30) days in which to agree on the Fair Market Rental at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rental, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental (including the indexed amounts applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv3.l(c)(iv)). If the parties are unable to agree on such rental within such thirty (30) day period, then within thirty (30) 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 the County in which the Real Property is located to appraise and set the Fair Market Rental for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3. l(d). 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 within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then either party may, upon not less than five (5) days notice to the other party, apply to the Presiding Judge of the Superior Court of the County in which the Real 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, the third appraiser shall set the Fair Market Rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties, which determination 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(d), the “Fair Market Rental” of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of San Xxxxxx with improvements and common area improvements comparable to those then existing in the Premises and paid for by Landlord.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Premises (as defined below), including any cost-of-living adjustments or other rental increase provisions then customary in the City of South San Francisco 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 term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental initial fair market rental (including any applicable rental increase provisions) for the Premises at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial 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 (including the indexed amounts and any applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv))rental increase provisions. If the parties are unable to agree on such rental (including any applicable rental increase provisions) within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the Premises at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1 (c). 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 an initial fair market rental (and any appropriate rental increase provisions) within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and any applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, then (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial 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 determination 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(d3.1(c), the “Fair Market Rentalfair market rental” of the Premises shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises and paid in the Center, taking into account for such determination all tenant improvements then existing in the Premises (including, but not limited to, all fixtures, equipment and laboratory improvements in place in the Premises on the Commencement Date) other than alterations, improvements or equipment which were constructed or installed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Premises at the expiration of this Lease pursuant to the provisions of Article 9 hereof.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Building (as defined below), determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and during each subsequent year of the first extended term shall be increased in accordance with the rental increase provisions customary in the City of South San Francisco for comparable commercial leases for office, laboratory and research and development projects as of the commencement of the first extended term (which rental increase provisions shall be determined as of the commencement of the first extended term in accordance with this Section 3.1(b), but shall in no event provide for an annual increase of less than three percent (3%) of the minimum rental in effect during the immediately preceding lease year). Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental increase provisions for the Building as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalfair market rental and rental increase provisions, they shall execute an amendment to this Lease stating the amount of the applicable initial minimum monthly rental (including and the indexed amounts applicable during subsequent years of rental increase provisions for the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such fair market rental and rental increase provisions within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise fair market rental and set the Fair Market Rental applicable rental increase provisions for the Premises at Building as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the fair market rental and applicable rental increase provisions within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set determine the Fair Market Rental fair market rental and applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rental amounts shall be added together and divided by three and the resulting quotient shall be the initial 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 (but in no event less than three percent (3%) per year over the minimum rent in effect in the immediately preceding lease year), which determination 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(d3.1(b), the “Fair Market Rental” "FAIR MARKET RENTAL" of the Premises Building shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Building and paid on the Property, taking into account for such determination all tenant improvements then existing in the Building (including, but not limited to, equipment and laboratory improvements installed as part of the initial Tenant Improvements pursuant to Section 5.1 and the Workletter) OTHER THAN improvements or alterations which were constructed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Building at the expiration of this Lease pursuant to the provisions of Article 9 hereof.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred ninety percent (10090%) of the fair market rental value of the Building (as defined below), determined as of the commencement of such extended term in accordance with this paragraph, and during each subsequent year of the first extended term shall be equal to one hundred three percent (103%) of the minimum rental in effect during the immediately preceding year of such extended term. Upon Landlord’s receipt of a proper notice of Tenant’s exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental initial fair market rental for the Building at the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial fair market rental, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental (including the indexed amounts applicable during subsequent years of the first extended term as described above in Section 3.1(c)(iv)above). If the parties are unable to agree on such rental within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 the northeastern San Mateo County in which the Real Property is located to appraise and set the Fair Market Rental initial fair market rental for the Premises Building at the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 an initial fair market rental within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real 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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial fair market rental for the first extended term, which determination 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(d3.1(b), the “Fair Market Rentalfair market rental” of the Premises Building shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, laboratory and research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Building and on the Property, taking into account for such determination all tenant improvements constructed at Landlord’s expense and paid for by LandlordLandlord or by Tenant through additional rent (including, but not limited to, all fixtures, equipment and laboratory improvements in place in the Building on the Commencement Date), but excluding from such determination any alterations or improvements constructed by Tenant at its sole expense after the Commencement Date.

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental for each Building as to which Tenant has elected to extend during the first year of the first extended term shall be equal to one hundred percent (100%) of the initial fair market rental value (as defined below)) for the applicable Building, determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and as of the beginning of each subsequent year of the first extended term such Minimum Rental shall be increased by an amount equal to the greater of (i) three percent (3%) of the Minimum Rental in effect during the immediately preceding lease year or (ii) the fair market rental escalation percentage (as defined below) for the applicable Building, determined as of the commencement of such extended term in accordance with this Section 3.1(b). Upon Landlord’s receipt of a proper timely notice of Tenant’s exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental escalation percentage for the Buildings as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalinitial fair market rental and rental escalation percentage, they shall execute an amendment to this Lease stating the amount of the applicable minimum monthly rental Minimum Rental during the first year of the extended term (including determined in accordance with this Section 3.1(b)) and the indexed amounts applicable during subsequent years annually increased Minimum Rental for the balance of the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such initial fair market rental and/or applicable rental escalation percentage within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise initial fair market rental and set the Fair Market Rental applicable rental escalation percentage for the Premises at Buildings as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the initial fair market rental and/or the applicable rental escalation percentage within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set the Fair Market Rental initial fair market rental and the applicable rental escalation percentage for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised initial fair market rentals shall be added together and divided by three and the resulting quotient shall be the initial fair market rental for the first extended term, and (ii) the three appraised fair market rental escalation percentages shall be added together and divided by three and the resulting quotient shall be the fair market rental escalation percentage used in determining the applicable rental escalation percentage for purposes of clause (ii) of the first sentence of this Section 3.1(b), which determination 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(d3.1(b), the “Fair Market Rentalfair market rental” of and “fair market rental escalation percentage” for the Premises respective Buildings shall be determined as follows: (x) in the case of a renewal term for any of the Buildings, with reference to the then prevailing market rental rates for properties in the City of northeastern San Xxxxxx Mateo County with shell and standard office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises applicable Building and paid on the Property, provided that no equipment or laboratory improvements shall be taken into account in determining such fair market rental; and (y) in the case of a lease or renewal term for any other building leased by Tenant under terms based on the terms of this Lease (for example, any building leased by Tenant pursuant to any of the provisions of Article 6 hereof, except to the extent any different basis of determination is specified in Landlord’s First Refusal Notice or First Offer Notice, if applicable, under such Article 6), with reference to the then prevailing market rental rates and then prevailing market rental escalation provisions for leases of comparable length of properties in the South San Francisco market with shell and office, research and development improvements and site (common area) improvements comparable to those then existing in the applicable building and on the Property, taking into account for such determination all tenant improvements then existing in the applicable building (including, but not limited to, equipment and laboratory improvements installed as part of the initial construction of tenant improvements in such building).

Rental Amounts During First Extended Term. If Tenant properly exercises its right to extend the Term term of this Lease pursuant to Section 2.6 hereof, the Minimum Rental minimum rental during the first year of the first extended term shall be equal to one hundred percent (100%) of the fair market rental value of the Building (as defined below), determined as of the commencement of such extended term in accordance with this paragraphSection 3.1(b), and during each subsequent year of the first extended term shall be increased in accordance with the rental increase provisions customary in the City of South San Francisco for comparable commercial leases for office, laboratory and research and development projects as of the commencement of the first extended term (which rental increase provisions shall be determined as of the commencement of the first extended term in accordance with this Section 3.1(b), but shall in no event provide for an annual increase of less than [***] percent ([***]%) of the minimum rental in effect during the immediately preceding lease year). Upon Landlord’s 's receipt of a proper notice of Tenant’s 's exercise of its option to extend the Term term of this Lease, the parties shall have thirty sixty (3060) days in which to agree on the Fair Market Rental at initial fair market rental and the applicable rental increase provisions for the Building as of the commencement of the first extended term for the uses permitted hereunder. If the parties agree on such Fair Market Rentalfair market rental and rental increase provisions, they shall execute an amendment to this Lease stating the amount of the applicable initial minimum monthly rental (including and the indexed amounts applicable during subsequent years of rental increase provisions for [***] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. the first extended term as described above in Section 3.1(c)(iv))term. If the parties are unable to agree on such fair market rental and rental increase provisions within such thirty sixty (3060) day period, then within thirty fifteen (3015) 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 who is a member of the American Institute of Real Estate Appraisers, or any other similar organization, and has at least five (5) years experience appraising similar commercial properties in northeastern San Mateo County, to determine the County in which the Real Property is located to appraise fair market rental and set the Fair Market Rental applicable rental increase provisions for the Premises at Building as of the commencement of the first extended term in accordance with the provisions of this Section 3.1(d3.1(b). 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 the fair market rental and applicable rental increase provisions within thirty (30) days after the appointment of the second, the two appraisers shall appoint a third similarly qualified appraiser within ten (10) days after expiration of such 30-day period; if they are unable to agree upon a third appraiser, then 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 of the County in which the Real Property is located for the appointment of a third similarly 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 third appraiser three appraisers shall set determine the Fair Market Rental fair market rental and applicable rental increase provisions for the first extended term by selecting the appraised value determined by the first two appraisers which is closest to his own determination, and shall so notify the parties. If a majority are unable to agree within the allotted time, (i) the three appraised fair market rental amounts shall be added together and divided by three and the resulting quotient shall be the initial 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 (but in no event less than [***] percent ([***]%) per year over the minimum rent in effect in the immediately preceding lease year), which determination 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(d3.1(b), the “Fair Market Rental” "FAIR MARKET RENTAL" of the Premises Building shall be determined with reference to the then prevailing market rental rates for properties in the City of South San Xxxxxx Francisco with shell and office, research and development improvements and site (common area area) improvements comparable to those then existing in the Premises Building and paid on the Property, taking into account for such determination all tenant improvements then existing in the Building (including, but not limited to, equipment and laboratory improvements installed as part of the initial Tenant Improvements pursuant to Section 5.1 and the Workletter) OTHER THAN improvements or alterations which were constructed by LandlordTenant at its sole expense and which Tenant has a right or obligation to remove from the Building at the expiration of this Lease pursuant to the provisions of Article 9 hereof.