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25B - AGMT - CDA WORK CENTER OFFICE SPACE LEASE
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25B - AGMT - CDA WORK CENTER OFFICE SPACE LEASE
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9/28/2017 4:59:11 PM
Creation date
9/28/2017 4:49:58 PM
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City Clerk
Doc Type
Agenda Packet
Agency
Community Development
Item #
25B
Date
10/3/2017
Destruction Year
2022
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Schedule "J-3" <br />Determining FMRR. <br />For purposes of determining the FMRR, the following procedure shall apply: <br />1 If Tenant duly exercises any Extension Option and duly rejects Landlord's determination (in its Market Rent Notice of the FMRR for the <br />Extension, then Landlord and Tenant shall endeavor to agree upon the FMRR for the Extension Term on or before the Outside Agreement Date <br />(defined below). If Landlord and Tenant are unable to agree upon the FMRR for the Extension Term on or before the Outside Agreement Date, then <br />the FMRR for the Extension Term shall be determined by arbitration pursuant to Section 2 of this Schedule "J-3". The "Outside Agreement Date" <br />means the date that is ten (l0) business days after the date that Tenant notifies Landlord, in its Market Rent Response Notice that Tenant has rejected <br />Landlord's initial determination of the FMRR for the Extension Tern. <br />2 If Landlord and Tenant shall fail to agree upon the FMRR for the Extension Tenn on or before the applicable Outside Agreement Date, <br />then within ten (10) business days thereafter, each of Landlord and Tenant shall submit to the other its final determination of the FMRR for the <br />Extension Term and such final determinations shall be submitted to arbitration (as Tenant's and Landlord's "Submitted FNIRR," respectively) in <br />accordance with the following: <br />2.1 Landlord and Tenant shall each appoint one arbitrator who shall by profession be a real estate broker who shall have been active <br />in the leasing of the project and the Comparable Buildings over the five (5) year period ending on the date of such appointment. The determination <br />of the arbitrators shall 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 <br />Extension Term, as determined by the arbitrators, taking into account the requirements of this Schedule "J-3". Each such arbitrator shall be <br />,appointed within fifteen (15) business days after the Outside Agreement Date. <br />2.2 The two arbitrators so appointed shall, within ten (10) business days of the date of the appointment of the second appointed <br />arbitrator, agree upon and appoint a third arbitrator who shall be qualified under the same standard as described in Section 2.1 of this Schedule "J-3" <br />(with respect to appointment of the initial two arbitrators). <br />2.3 The three arbitrators shall, within thirty (30) days of the appointment of the third arbitrator, reach a decision as to whether the <br />parties shall use Landlord's or Tenant's Submitted FMRR and shall notify Landlord and Tenant thereof; provided that: (a) if either Landlord or <br />Tenant fails to appoint an arbitrator within fifteen (15) business day period described in Section 2.1 of this Schedule "J-3", then the arbitrator <br />appointed by the other parry shall solely reach a decision as to the FMRR for the Extension Term and notify Landlord and Tenant thereof within <br />thirty (30) days following expiration of such fifteen (15) business day period, and such arbitrator's decision shall be binding upon Landlord and <br />Tenant, and (b) if the two arbitrators fail to agree upon and appoint a third arbitrator, or both paries fail to appoint an arbitrator, then the appointment <br />of the third arbitrator or any arbitrator shall be dismissed and the matter to be decided shall be promptly submitted to arbitration under the provisions <br />of the American Arbitration Association (the "AAA"), but subject to the instructions set forth in this Schedule'? -3". <br />2.4 The decision of the majority of the three arbitrators (or in the case of a decision made under clause (a) or (b) of Section 2.3 of this <br />Schedule "J-3" the decision of the single arbitrator or the arbitrator(s) appointed by the AAA) shall be binding upon Landlord and Tenant, shall be in <br />writing and shall be non -appealable, and counterpart copies thereof shall be delivered to Landlord and Tenant. Ajudgment or order based upon such <br />award may be entered in any court of competent jurisdiction. In rendering their decision and award, the arbitrators shall have no power to vary, <br />modify or amend any provision of this Lease. <br />2.5 Landlord and Tenant shall each bear 50% of the cost of the arbitration described in this Section 2 of this Schedule `J-3". <br />801 lF Civic Center Dr—City of Santa Ana Lease -5- Exhibit J <br />25B-57 <br />
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