Procedure for Determining Prevailing Market Clause Samples
The "Procedure for Determining Prevailing Market" clause establishes a method for identifying the current standard or average market conditions relevant to a contract, such as pricing, rates, or terms. Typically, this clause outlines the steps parties must follow to gather market data, which may include referencing specific indices, consulting independent experts, or surveying comparable transactions. Its core practical function is to provide an objective and transparent process for resolving disputes or uncertainties about what constitutes the prevailing market, thereby reducing ambiguity and potential conflicts between parties.
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Procedure for Determining Prevailing Market. Within 30 days after receipt of Tenant’s Initial Renewal Notice, Landlord shall advise Tenant of the applicable Base Rent rate for the Premises for the Renewal Term. Tenant, within 15 days after the date on which Landlord advises Tenant of the applicable Base Rent rate for the Renewal Term, shall either (i) give Landlord final binding written notice (“Binding Notice”) of Tenant’s exercise of its Renewal Option, or (ii) if Tenant disagrees with Landlord’s determination, provide Landlord with written notice of rejection (the “Rejection Notice”). If Tenant fails to provide Landlord with either a Binding Notice or Rejection Notice within such 15 day period, Tenant’s Renewal Option shall be null and void and of no further force and effect. If Tenant provides Landlord with a Binding Notice, Landlord and Tenant shall enter into the Renewal Amendment (as defined below) upon the terms and conditions set forth herein. If Tenant provides Landlord with a Rejection Notice, Landlord and Tenant shall work together in good faith to agree upon the Prevailing Market rate for the Premises during the Renewal Term. When Landlord and Tenant have agreed upon the Prevailing Market rate for the Premises, such agreement shall be reflected in a written agreement between Landlord and Tenant, whether in a letter or otherwise, and Landlord and Tenant shall enter into the Renewal Amendment in accordance with the terms and conditions hereof. Notwithstanding the foregoing, if Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Premises within 30 days after the date Tenant provides Landlord with the Rejection Notice, Tenant’s Renewal Option shall be deemed to be null and void and of no force and effect.
Procedure for Determining Prevailing Market. Within 30 days after receiving the Extension Notice, Landlord shall give Tenant either (i) written notice (“Landlord’s Binding Notice”) accepting Tenant’s estimate of the Prevailing Market rate for the Extension Term stated in the Extension Notice, or (ii) written notice (“Landlord’s Rejection Notice”) rejecting such estimate and stating Landlord’s estimate of the Prevailing Market rate for the Extension Term. If Landlord gives Tenant a Landlord’s Rejection Notice, Tenant, within 15 days thereafter, shall give Landlord either (i) written notice (“Tenant’s Binding Notice”) accepting Landlord’s estimate of the Prevailing Market rate for the Extension Term stated in such Landlord’s Rejection Notice, or (ii) written notice (“Tenant’s Rejection Notice”) rejecting such estimate. If Tenant gives Landlord a Tenant’s Rejection Notice, Landlord and Tenant shall work together in good faith to agree in writing upon the Prevailing Market rate for the Extension Term. lf, within 30 days after delivery of a Tenant’s Rejection Notice, the parties fail to agree in writing upon the Prevailing Market rate, Tenant’s Extension Option shall be of no further force or effect.
Procedure for Determining Prevailing Market. Within 30 days after receiving Tenant’s Extension Notice, Landlord shall give Tenant notice of Landlord’s estimate of the Base Rent rate for the Extension Term (the “Base Rent Notice”), which shall reflect the Prevailing Market rate. Within 15 days after receiving the Base Rent Notice, Tenant shall give Landlord either (i) written notice (“Binding Notice”) accepting the Base Rent rate described in the Base Rent Notice, or (ii) written notice (the “Rejection Notice”) rejecting such Base Rent rate. If Tenant fails to give Landlord a Binding Notice or a Rejection Notice within such 15-day period, the Extension Option shall be of no further force or effect. If Tenant timely gives Landlord a Rejection Notice, Landlord and Tenant shall work together in good faith to agree in writing upon the Prevailing Market rate for the Extension Term. If, within 30 days after timely delivery of a Rejection Notice, the parties fail to agree in writing upon the Prevailing Market rate, Tenant’s Extension Option shall be of no further force or effect.
Procedure for Determining Prevailing Market. The Prevailing Market rate for the Suites 9225 and 9215 Must Take Space shall be mutually agreed upon by Landlord and Tenant within the period commencing September 1, 2013 and ending October 31, 2013. If Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Suites 9225 and 9215 Must Take Space on or before October 31, 2013, then the Prevailing Market rate for the Suites 9225 and 9215 Must Take Space shall be established by appraisal in accordance with the procedures set forth in Exhibit A attached hereto.
Procedure for Determining Prevailing Market. The Prevailing Market rate for the Premises shall be mutually agreed upon by Landlord and Tenant in writing within the period commencing June 1, 2014 and ending July 31, 2014. When Landlord and Tenant have agreed upon the Prevailing Market rate for the Premises, such agreement shall be reflected in a written agreement between Landlord and Tenant, whether in a letter or otherwise, and Landlord and Tenant shall enter into the Renewal Amendment (as defined below) in accordance with the terms and conditions hereof. If Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Premises on or before July 31, 2014, then the Prevailing Market rate for the Premises shall be established by appraisal in accordance with the procedures set forth in Exhibit A attached hereto.
Procedure for Determining Prevailing Market. Within 30 days after receipt of Tenant’s Initial Renewal Notice, Landlord shall advise Tenant of the applicable Base Rent rate for the Premises for the Renewal Term (“Landlord’s Renewal Base Rent Notice”), which shall reflect the Prevailing Market rate (described below in this Section F) per rentable square foot for the Premises. Tenant,
Procedure for Determining Prevailing Market. The Prevailing Market Rent shall be mutually agreed upon by L▇▇▇▇▇ and L▇▇▇▇▇ in writing within the thirty (30) calendar day period commencing eight (8) months prior to commencement of the Second Extension Term. If Lessor and L▇▇▇▇▇ are unable to agree upon the Prevailing Market Rent within such thirty (30) day period, then the Prevailing Market Rent shall be established by appraisal in accordance with the procedures set forth below. Within fifteen (15) days after the expiration of the thirty (30) day period for the mutual agreement of Lessor and L▇▇▇▇▇ as to the Prevailing Market Rent, each party hereto, at its cost, shall engage a real estate broker to act on its behalf in determining the Prevailing Market Rent. The brokers each shall have at least ten (10) years’ experience with leases in San J▇▇▇ and shall submit to Lessor and Lessee in advance for Lessor’s and Lessee’s reasonable approval the appraisal methods to be used. If a party does not appoint a broker within such fifteen (15) day period but a broker is appointed by the other respective party, the single broker appointed shall be the sole broker and shall set the Prevailing Market Rent. If the two brokers are appointed by the parties as stated in this paragraph, such brokers shall meet promptly and attempt to set the Prevailing Market Rent. If such brokers are unable to agree within thirty (30) days after appointment of the second broker, the brokers shall elect a third broker meeting the qualifications stated in this paragraph within ten (10) days after the last date the two brokers are given to set the Prevailing Market Rent. Each of the parties hereto shall bear one-half (1/2) the cost of appointing the third broker and of the third broker’s fee. The third broker shall be a person who has not previously acted in any capacity for either party. Once a party has selected a broker and negotiations have commenced between the brokers, such broker may not be replaced with another broker. The third broker shall conduct his or her own investigation of the Prevailing Market Rent, and shall be instructed not to advise either party of his or her determination of the Prevailing Market Rent except as follows: When the third broker has made his or her determination, he or she shall so advise Lessor and Lessee and shall establish a date, at least five (5) days after the giving of notice by the third broker to Lessor and Lessee, on which he or she shall disclose his determination of the Prevailing Market Rent...
Procedure for Determining Prevailing Market. The Renewal Notice shall be irrevocable and, subject to compliance with Sections 3.A.1 — 3 above, upon delivery of the Renewal Notice the Term shall be extended for the Renewal Term. The Prevailing Market rate for the Premises shall be mutually agreed upon by Landlord and Tenant in writing within the 30 calendar day period commencing 6 months prior to the commencement of the Renewal Term. When Landlord and Tenant have agreed upon the Prevailing Market rate for the Premises, such agreement shall be reflected in a written agreement between Landlord and Tenant, whether in a letter or otherwise, and Landlord and Tenant shall enter into the Renewal Amendment (as defined below) in accordance with the terms and conditions hereof. If Landlord and Tenant are unable to agree upon the Prevailing Market rate for the Premises within the 30-day period described above, then the Prevailing Market rate for the Premises shall be established by appraisal in accordance with the procedures set forth in Exhibit H attached hereto.
Procedure for Determining Prevailing Market