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NEGOTIATING KEY LEASE PROVISIONS A Landlord's Point of View - page 26 / 60

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FORM 7

EXTENSION OPTION - FAIR MARKET VALUE - APPRAISAL (LANDLORD ORIENTED)

Minimum Rent for the Premises at the commencement of any Extended Term shall be determined in accordance with the following procedure:

Promptly following receipt by Landlord of Tenant's Option Notice, Landlord and Tenant shall attempt to reach agreement on the initial minimum Rent for the Extended Term in question which Minimum Rent shall be at the then current fair market value for the highest and best use of the Premises. If Landlord and Tenant are able to agree on the initial minimum Rent for the Extended Term in question, Landlord and Tenant shall immediately execute an amendment to this Lease stating the initial Minimum Rent for such Extended Term.

If the parties are unable to agree on the initial Minimum Rent for the Extended Term in question within forty-five (45) days following Landlord's receipt of the Option Notice, then each party, at its cost and by giving notice to the other party, shall have twenty (20) days within which to appoint an MAI certified real estate appraiser with at least five (5) years' full-time commercial appraisal experience in the Area in which the Premises are located, to appraise and set the initial Minimum Rent for such Extended Term in accordance with the then current fair market value for the highest and best use of the Premises. If a party does not appoint an appraiser within such twenty (20) day period, the single appraiser appointed shall be the sole appraiser and shall set the initial Minimum Rent for such Extended Term. If two appraisers are appointed by the parties as stated in this Paragraph, they shall meet promptly and attempt to set the initial minimum Rent for such Extended Term. If they are unable to agree within forty-five (45) days after the second appraiser has been appointed, they shall attempt to elect a third appraiser meeting the qualifications stated in this paragraph within twenty (20) days after the last day the two appraisers are given to set the initial Minimum Rent for such Extended Term. If they are unable to agree on the third appraiser, either of the parties to this Lease, by giving ten (10) days notice to the other party, can apply to the presiding judge of the superior court of that county for the selection of a third appraiser who meets the qualifications stated in this paragraph. Each of the parties shall bear one-half (1/2) of the cost of appointing the third appraiser and of paying the third appraiser's fee. The third appraiser, however selected, shall be a person who has not previously acted in any capacity for either party.

Within twenty (20j days after the selection of the third appraiser , a majority of the appraisers shall set the initial minimum Rent for the Extended Term in question. If a majority of the appraisers are unable to set the initial Minimum Rent within the stipulated period of time, the two closest appraisers shall be added together and their total divided by two; the resulting quotient shall be the initial Minimum Rent for the Premises during such Extended Term. In no

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