SANTA ANA - WORK CENTER - Laserfiche WebLink

Home Browse Search

Schedule "J-3" Determining FMRR. Par purposes ofdetermining the FMRR, the following procedure shall apply I 11'Tenant duly exercises any Extension Option and Only rejects Landlord's determination (in its Market Rent Notice of the FMRR Pot the Extension, then Lnndlard and Tenant shall endeavor to agree upon the FMRR for die Extension Term on or before the Outside Agreement Date (defined below). If Landlord and Tenant are unable to agree upon the FMRR far the Extension Tenn on or belore the Outside Agreement Date, then the FMRR for the Extension Terui shall be determined by arbitration pursuant to Section 2 of this Schedule J-3". The "Outside Agreement Date" means the dale that is ten (10) business days after the dale that Tenant notifies Landlord, in Its Market Rent Response Notice that Tenant his rejected Landlord's initial determination ofthe FMRR for die Extension Tetra. 2 If Landlord and Tenant shall fail to agree upon the FMRR for die Extension Term on or before the applicable Outside Agreement Date, then within ten (10) business days thereafter, each of Landlord and Tenant shall submit to the other its final determination of Die FMRR for the Extension Tenn and such final determinations shall be submitted to arbitration (as Tenant's and Landlord's "Submitted FMRR," respectively) in accordance with the following: 2.1 Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate broker who shall have been active in the leasing of the Project and the Comparable BulIdings over the five (5) year period ending on the date of such appointment. The determination of ors the arbitratshall be limited solely to the issue as to whether Landlord's or Tenant's Submitted FMRR is the closest to the actual FMRR for the Extension Term, as determined by the arbitrators, taking into account the requirements of this Schedule "J-3", Each such arbitrator shall be appointed within fifteen (15) business days after the Outside Agreement Date. 2.2 The two arbitrators so appointed shall, within ten (10) business days of the date of the appointment of the second appointed arbitrator, agree upon and appoint a lhild arbitrator who shall be qualified under the same standard as described in Section 2A of this Schedule'?-3" (with respect to appointment ofthe initial two arbitrators). 2.3 The three arbitrators shall, within thirty (30) days of the appointment of the third arbitrator, reach a decision as to whether the parties shall use Landlord's or Tenant's Submitted FMRR and shall notify Landlord and Tenant thereof; provided that: (a) if either Landlord or Tenant fails to appoint an arbitrator within fifteen (15) business day period described in Section 2.1 of this Schedule J-P Bien the arbitrator appointed by the other party shall solely reach a decision as to the FMRR for the Extension Teran and notify Landlord and Tenant thereof within thirty (30) days following expiration of such fifteen (15) business day period, and such arbitrator's decision shall be binding upon Landlord and Tenant, and (b) if the two arbitrators fail to agree upon and appoint a third arbitrator, or both parties fail to appoint an arbitrator, then the appointment ortie thirdarbitratoror any arbitrator shall be dismissed and the matter to be decided shall be promptly submitted to arbitration under the provisions of the American Arbitration Association (Ore `AAA'), but subject to the instructions set fords in this Schedule "J-3". 2.4 The decision of tho majority ofthe three arbitrators (or in the case of decision made under clause (a) or (b) of Section 2.3 of this Schedule 1-3", the decision of the single arbitrator or doe moitrator(s) appointed by the AAA) shall be binding upon Landlord and Tenant, shall be in writing and shall be non -appealable, and counterpart copies thereof shall be delivered to Landlord and Tenant. Ajudgment or order based upon such sword may be entered in any court of competent jurisdiction. 1n rendering their decision and award, the arbitrators shall have no power to vary, modi fy or omend any provision of this Lease. 2.5 Landlord and Tenant still][ each bear M of the cost of the arbitration described in this Section 2 ofthis- Schedule'?-3". DSO/ li'Civie Caner Dr—Clp: n%,Saura rinn Lent¢ -p- Gshil+ii .I