Common use of Second Extension Term Clause in Contracts

Second Extension Term. Subject to the terms and conditions of this Section 10, Sublessee shall have the right to extend the Term of this Sublease through the balance of the term of the Master Lease, which expiration date Sublessor hereby represents is November 13, 2010 (the "Second Extension Term"). The Second Extension Term, together with the First Extension Term and Initial Term shall be referred to as the "Term" if: (i) Sublessee has exercised the right to extend the Initial Term for the First Extension Term pursuant to Section 10(a); (ii) Sublessor receives notice of exercise ("Second Renewal Notice") not later than the date that is nine (9) months prior to the Expiration Date as amended by Section 10(a); (iii) Sublessee is not in default under this Sublease beyond any applicable cure periods at the time that Sublessee delivers its Second Renewal Notice and at the commencement of the Second Extension Term; and (iv) This Sublease has not been assigned by Sublessee and not more than seventy-five percent (75%) of the Premises has been further sublet by Sublessee prior to the date upon which Sublessee delivers its Second Renewal Notice. Base Rent during the first year of the Second Extension Term shall be the greater of (i) 103% of the Base Rent during the immediately preceding year or (ii) fair market rent. Commencing on the first anniversary of the Second Extension Term, and annually thereafter, Base Rent shall be increased to equal 103% of the Base Rent during the immediately preceding year. Base Rent and Additional Rent for the Second Extension Term shall be payable on the same terms as such items are payable under this Sublease during the Initial Term and First Extension Term. For purposes hereof, "fair market rent" shall mean the effective base rental rates (including periodic adjustments to such base rental rates) then being received for premises of similar size and quality to the Premises, located in industrial parks in the South San Francisco area which are similar in size and quality to the Project, leased for terms of approximately equal length to the Term, and otherwise subject to leases containing substantially similar terms as those contained in this Sublease. Notwithstanding the foregoing, "fair market rent" shall not include any rental value attributable to improvements, alterations, fixtures, equipment, and personal property installed in the Premises at Sublessee's expense.

Second Extension Term. Subject to the terms and conditions of this Section 10, Sublessee shall have the right to extend the Term of this Sublease through the balance of the term of the Master Lease, which expiration date Sublessor hereby represents is November 13, 2010 (the "Second Extension Term"). The Second Extension Term, together with the First Extension Term and Initial Term shall be referred to as the "Term" if: (i) Sublessee has exercised the right to extend the Initial Term for the First Extension Term pursuant to Section 10(a);; ------------------ [*] Confidential treatment requested. Redacted (ii) Sublessor receives notice of exercise ("Second Renewal Notice") not later than the date that is nine (9) months prior to the Expiration Date as amended by Section 10(a); (iii) Sublessee is not in default under this Sublease beyond any applicable cure periods at the time that Sublessee delivers its Second Renewal Notice and at the commencement of the Second Extension Term; and (iv) This Sublease has not been assigned by Sublessee and not more than seventy-five percent (75%) of the Premises has been further sublet by Sublessee prior to the date upon which Sublessee delivers its Second Renewal Notice. Base Rent during the first year of the Second Extension Term shall be the greater of (i) 103% [*] of the Base Rent during the immediately preceding year or (ii) fair market rent. Commencing on the first anniversary of the Second Extension Term, and annually thereafter, Base Rent shall be increased to equal 103[*]% of the Base Rent during the immediately preceding year. Base Rent and Additional Rent for the Second Extension Term shall be payable on the same terms as such items are payable under this Sublease during the Initial Term and First Extension Term. For purposes hereof, "fair market rent" shall mean the effective base rental rates (including periodic adjustments to such base rental rates) then being received for premises of similar size and quality to the Premises, located in industrial parks in the South San Francisco area which are similar in size and quality to the Project, leased for terms of approximately equal length to the Term, and otherwise subject to leases containing substantially similar terms as those contained in this Sublease. Notwithstanding the foregoing, "fair market rent" shall not include any rental value attributable to improvements, alterations, fixtures, equipment, and personal property installed in the Premises at Sublessee's expense.