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HomeMy WebLinkAboutReso 221-07 Amend Land Lease RESOlLUT][ON NO 221 - 07 A RESOlLUT][ON OF THE CITY COUNCIlL OF THE CITY OF IDUBlLIN AlPlPROV][NG SECOND AMENDMENT TO lLAND lLEASE BETWEEN CITY OF DUBLIN AND US BANK NATIONAlL ASSOCIATION WHEREAS, at the August 1, 2006, meetmg of the DublIn CIty Council, the CouncIl adopted ResolutIOn 149-06 approvIng General Plan Amendments and the DublIn Village Hlstonc Area SpeCific Plan, the Parks and RecreatIOn Master Plan May 2006 Update (Resolution 150-06), and, the DublIn Hlstonc Park Master Plan (ResolutIOn 151-06), all of which are Incorporated herem by thIS reference, and WHEREAS, the March 2004 Update to the Parks and RecreatIOn Master Plan antIcIpated a 5 3 acre parkland defiCit at buIld out of the City and IdentIfied the need to select and deSignate sites for new parks to alleVIate the defiCIt and the DublIn Square Shoppmg Center was one of the deSignated Sites, and WHEREAS, at the September 16, 2006 City CounCil meetmg, the Dublm City CounCil approved an amendment to the 2006-2011 Capital Improvement Program for the DublIn HIstonc Park AcqUlsItIOn Project ThIS Project mcludes and proVIdes for the acqmsltlon of the Dublm Square ShoppIng Center (APN 941-1560-007-01) so that It may be used for the park and ProJect, and WlHIEREAS, the CIty acqUlred fee tttle to APN 941-1560-007-001, the DublIn Square Shoppmg Center, on May 9,2007, and all lease agreements thereto were aSSigned to and accepted by the City, and WJHIEREAS, the eXIstmg lease With U S Bank NatIOnal ASSOCIatIOn expIred on October 31, 2007 and the City and U S Bank NatIOnal ASSOCIatIOn WIsh to amend certam conditions In the lease, mcludmg rent, access, and parkmg NOW, THEREFORE, BE IT RESOlLVED that the City CounCIl of the CIty of DublIn does hereby approve the second amendment to the Land Lease agreement WIth U S Bank National AssOciatIOn, attached hereto as ' ExlubIt 1" WIth the effectIve date of November 1, 2007 BE 11' FURTHER RESOlLVED that the Mayor IS authonzed to execute the second amendment Page 1 of 2 1P ASSED, APPROVED AND ADOlPTED thiS 18th day of December, 2007 by the followmg vote AYES CoulID.cIlmember Hildenbrand, Oravetz, Sbrantl, Scholz, snd! Mayor lLoclkhart NOES None ABSENT None ABSTAIN None ATTEST ~~~~ tenm CIty Clerk 1144019/1023854 Page 2 of 2 SECOND AMENDMENT TO LAND LEASE ~ THIS SECOND AMENDMENT TO LAND LEASE (the "Amendment") is made as of Wovelmb@. ~, 2007, between the City of Dublin ("Landlord") and U.S. Bank National Association, a national banking association, formerly known as Community First National Bank ("Tenant") . A. Pursuant to the LAND LEASE dated as of April 14, 1967, attached hereto as Exhibit A, and incorporated herein by reference, and amended May 9, 1990 through the LEASE AMENDMENT attached hereto as Exhibit B, and incorporated herein by reference (collectively, the "LEASE"), Tenant leases the real property situated in the Dublin Square Shopping Center, as more particularly described in the Lease (the "Premises"). B. The City of Dublin acquired fee title in and to the real property commonly referred to as the Dublin Square Shopping Center located at 11759 Dublin Boulevard, City of Dublin, County of Alameda, State of California, in May 2007 from Berkeley Land Co., through a Purchase and Sale Agreement. Landlord and Berkeley Land Co., Inc., also entered into an "Assignment and Assumption of Leases" dated May 9, 2007, whereby City of Dublin became Landlord under LAND LEASE dated April 14, 1967, and LEASE AMENDMENT dated May 9, 1990, and City of Dublin was assigned, transferred, and conveyed all rights, title and interests as Landlord under LAND LEASE and LEASE AMENDMENT. C. Landlord acquired the Premises and Dublin Square Shopping Center for a proposed project for expansion of the existing Historic Park (the "Project"). D. Landlord and Tenant desire to. amend LEASE to alter certain provisions thereof on the terms and conditions hereinafter set forth. NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Landlord and Tenant agree as follows: 1. Rent. Commencing on November 1, 2007, annual rent shall be Forty Two Thousand and 00/100 Dollars ($42,000.00) payable in advance in equal monthly installments of Three Thousand Five Hundred and 00/1 00 Dollars ($3,500.00). Thereafter rent shall be subject to adjustment every three years, beginning November 1, 2010, to an amount equal to the lesser of (i) the change in the San Francisco - Oakland Consumer Price Index For Urban Wage Earners and Clerical Workers as published by the United States Department of Labor - Bureau of Labor Statistics, August index (the total change in the CPI in the three year period, for example from November 1,2007 to November 1,2010); or (ii) seven percent (7%). Should the Bureau cease to publish the San Francisco - Oakland Consumer Price Index For Urban Wage Earners and Clerical Workers, the parties shall agree in writing to a reasonable replacement index. Exhibit 1 2. Historic Park Proiect. Landlord and Tenant acknowledge that Landlord plans to proceed with the Project within the Dublin Square Shopping Center, and immediately adjacent to the Premises, and change the area's usage from a retail area to a park area. During the Project's construction Landlord agrees to make reasonable efforts to notify the Tenant of all construction activity which may affect the Tenant's use of the Premises. This includes, but is not limited to, providing Tenant with site plans and work schedules for the areas immediately adjacent and affecting the Premises. 3. Parkin!!. Section 7 of LEASE grants Tenant's patrons the reciprocal right to use the parking area at the Dublin Square Shopping Center in addition to the other tenants' patrons of the shopping center. Landlord agrees to provide, at all times during construction of Project and thereafter during the term of LEASE, adequate parking stalls for the shared use of Tenant and park patrons as required under City's Zoning Ordinance and/or parking requirements for banks (1 space per 150 square fee of building space). In no event shall the number of parking stalls available to Tenant's patrons during regular business hours be less than twenty (20). 4. Access. Currently, there are three driveways providing access into and out of the Dublin Square Shopping Center. The Project will eliminate the driveway from Donlon Way to the parking area. Landlord agrees to maintain the two driveways nearest Tenant. 5. Authority. Landlord and Tenant represent and warrant that each has all the necessary approvals and authority to enter into this Amendment, and shall indemnify and hold each other harmless for any breach of this representation and warranty. 6. No Existin!! Defaults. Landlord and Tenant represent and warrant that there are currently no defaults by either party under the Lease. . 7. Notices. Any notices to Landlord and/or Tenant under this Lease must be in writing and must be hand-delivered, sent by prepaid certified mail or by reputable overnight courier addressed to the following, all other notice requests shall remain as stated herein: Tenant: U.S. Bank, National Association Corporate Real Estate 4480 Emerald Avenue Cincinnati, Ohio 45242 Attn: Marsha Ward Lane, Vice President With a copy to: U.S. Bank, National Association Attn: Corporate Real Estate Counsel 800 Nicollet Mall, BC-MN-'H21R Second Amendment to Land Lease Page 2 of 4 Minneapolis, MN 55402 Landlord: City of Dublin 100 Civic Plaza Dublin, California 94568 Attn: Richard Ambrose, City Manager With a copy to: Meyers, Nave, Riback, Silver and Wilson 555 12th Street, Suite 1500 Oakland, California 94607 Attn: Elizabeth H. Silver, City Attorney 8. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute one and the same instrument. Faxed signatures shall be considered originals. 9. Ratification. All of the terms of the LEASE, as amended hereby, are hereby ratified and confirmed. All other terms of LEASE remain binding except where they contradict this Second Amendment which shall prevail. [Remainder of page intentionally left blank. Signature page follows.) Second Amendment to Land Lease Page 3 of 4 WHEREFORE, Landlord and Tenant have executed this Amendment as of the date first above written. Second Amendment to Land Lease A2f L oc.Kh Ii t-I Title: Ih ;q yo r TENANT: r By: 7hkJ ,V Q01;l/V Print ~ (;11-< ~Rv--- Title: v I f B~ill. LiJQ,~ Print Nam~a.xt-L-L ~w~ Title: \J'\~ -?~\~\- Page 4 of 4 29 30 31 32 "}4 1. LAND LEASE I THIS LAND LEASE, '.execute"d in duplie'ate at pi~~;'~~to~r .. j :... . . ~ .co~pOratiol'l.1 7 r be tw ERI<ELEY LAND COMPANY land 'l!HE a. rporata.o ...:.: .' ! FIRST NATIONAL. B~K .OF. PLEAS. ~r called ~.e~pe~~i~~ly I the Lessor a~d ~ ~~:~.~~~\'.. without regard t~: ~umber o~ ~~~~~r:':. . .'! IT IS AGREED between the partIes hereto as follows: 1 2 :3 n 4 5 6 7 8 :- .' . . ~ , ~~ .. ..... ........ . ~ . l'~' DESCRIPTION OF PREMISES: The Le~sor hereby leases .oO- w" ~ '. .- i .,.. ~ .. -:- ., ::': ::_... ... i. " L.... '.<.: .' tofue Lessee the real property situated in the DUblin Square Shopping cen.t~~; '~~ .Dtiliiin Boulevard, Dub:i.i~.~ AJ.amed~ cou~~y. .'" ..,'" ~." . .. , . . . ~.'J. "...;. ..... California, 9.0 x .90 feet, more part.icularly described in "Exhibit AI> 9 10 . 0 .. .~. . 'i. . 11 attached hei~to and 'made a part hereof. 12 ..... ~ _ .... '"'. ~:: ; ~. : 2. TERM AND RENT: . . ,'1 ":-, . . ,'.!:; . . years comrnericinq on the first day of October, 1967, at a total ~ ~~,.. "~ The term shall be for twenty (ZO) ~. . .. '. . . . . - ,'J 13 14 :;:';. !....' ,.,-. ," . . rent or sum of TWENTY-SIX THOUSAND THREE HUNDRED TWENTY-THREE and 15 . :'~ "'~' ::;.~_.. . ;.'~ .... l\":. 20/100 DOLLARS ($26,323.20), lawful money of the United States, Ie . . ':".~': 1.: ..', :. .: !: ~ . : ." . . . -:. .... " which sum shall be paid in installments as follows: ONE HONDRED 17 NINE and 68/100 DOLLARS ($109.68) on October 1, 1967, ONE HUNDRED 18 . : . : " :. ,0 .. ...... .... ... NINE and 68/100 DOLLARS ($109.68) on the first day of each and every month therea.fter until said total sum of n-mNTY-SIX THOUSAND 19 20 ....:J,.. ....., .:::. ..: . THREE HUNDRED TWENTY-THREE . '." o. . .. and 20/100 DOLLARS ($26,323.20) has be n ';, . ; ~ This lease is sub~ect. to the following . 21. . , . . . paid. 22 . . 1:' .. 3. CONDITIONS: 23 conditions; 24 (a) That Lessee receives the necessary permits, 25 '. I .: ~: :_". . . . authority' ~nd ~ppro~al of all federal, state, county an 26 h" :".... .; . municipal agencies having j~isdiction for the construe 27 . !. ':. ;. '.. . l '. '. tion, erection, maintenance and use of a commercial 28 . . building on the real property described hereinabove. '. .',0,.. .", . \ '. . ~. ( :: ': . ..\. I (bf. That the Comptroller of the Currency of the . ;! . ... United States, or other bank supervisory authority . ~ ~.. ; .' .' ......; grant a permit to relocate the. Branch of Lessee, now -I), 10. .,.., located at 11902 Dublin Doulevard, to the demised .-:~.'.~: :.::'~~:. i- ~. n_ premi.ses. -1- .'ft Exhibit A -- .~: .~ r. .. i' . ,". J 29 .;30 .31 32 n a I r I (e}" Thac'Lessor is abi. <00 .ecur. .<oho ~le..e ,f<~ I 2 an. exi.sting 'deed .of trust on the ..entire: Dublin ,Square 3 . .Shopping Center, as to the portion.of said shopping. : 4 Center.:to.'be.leased by Lessee, so that. ~es5ee I.S. .3.~a,s!'!- hold ~rtterest.will,be.prior, superior. and paramount; to 5 6 'thee. lien.. c.f . ahy fucirtgage. or dEled: of..; trust,. which', may now '.," or'.hereaftertaffe.ctLessor'g fee interest..in the.,leased. . 7 . . " .. , " 8 property oX'.. any part thereof;.. In the event. .Les.S9L.j..s.., unable. .to' obtain such a release, this lease shall be 9 10 null land vold... !.'! . . . -.,.' '~'; 1.1 . :If' any of. :'the" forego ing .governtnen tal.. agencie~. .shquld 12 prohihit~' enjoin or 'penalize Lessee in the.constru~tion, ereaFian, marriten.arice) 'or use: of said premises by Lessee I, .LesseE! . sh~ll -have the'.'optiori...to .:treat ,this;le.ase as null and void. In :the ..!3ye,nt ..' : L.e'ssoi- f5 lJn"ablei. '-to' .:obtain 'the release!, of the portion ..0:1;, ct:Q.~ pre- nd.-se.s 'known as the Dublin Square Shopping Genter, described hereinabove., to. be leased .by Lessee, .from. .the existing. pee 0,. ;.of: Trust on said premises so that Lessee's leasehold interest as contained hei-red.:n. shAlI be prior; superior "and ',paramount :.to sa:!,d:.., deed ..of .trust, this lease shall be null and void. Lessee shall give notice -in. w:.d t.ing.:to L!;!s s ~r. ~f any such elec~ion. undeJ<. this paragraph'within t:hirey~ {SQ). days of the/date that Lessee receives knowledge of the failure-of any of ,the conditions containeqjherei . 1:5 14 15 Ie 17 18 19 20 2~ 22 23 24 25 . . Lessor. agre~s;-to .give.:notice to Lessee in w:riting within. -sixty' . (60) '" days. from the date. oftha execution .of this lease, <!~ . to:.,., whether or. not'.'the hol.der:of said. deed of :t:rus,t will subordinate 26 27 '1::0'. Lessee.t.s" interest' as contained herein. 28 4.. - CONSTRUCTION .BY LESSEE::. . , . Ca).: Leasee'shall at'his.'sole cos.t'and expense.,. con struct .on. the,' deinised. premi'ses, a bank. building aL.2,OOO feet, mo e 'or .le.ss~'. togeithet with all;. necElS"sary fixtures, andappur:te~ances. Construction :shaIl~be diligently. prosecuted to completion, -2- ... .. .J _.-'''''' ._'~'-'--' .-.----"l~Il..._'~~~. t~. ,_ - '1; -;. . lIWIJ?.....- "'-'-~"'':'''':~'':';...;o........~~_ _.~'r -.. __ __0"._.._-__. '- _.__.....~~- w'a,.L ,~..;. -1 _~"IiII~~...-.-....~~~". .~..o:.~ n 0Th., .7.....~ \~jy 1 2 subject to ~elaY$ covered herein belo~, and ~e~aYB. co~s~~ted to by Lessor. :. .Any l?1.=:ev:e~:~:ion, :~.lay I or !:!toppage due: ,to ..strikes! w<!J,kouts , '.~~9J; .Aisput.es, acts of God , . inability. to ~btain labqr . . -' . ,- ....-.; ~ ': . . or :mate.z:;iaJ,6, or..r~asonabl.e s}lbstitutes ther~~o..z:;J ~9,:e7nm~~ta+:.... ~estric1:-io~s I. 9ove~nroental regu~ations, governmen,~af :.co~~r~.~s, enemy or "r.o~i?i~~..!g9.yerl.lIl1enta~ acti,?~.! ~iv.iJ,. ,.c:omrnotio~ ~ '/+:7...;?r o~her.c~sualty..and_other causes beyon~.~~ reasonable control of -.- ',.... ...... oJ.... ..... . ... ... - ",'" '~.., .~ l,oJ ~. . :.:-:..~.... .~, the ~esse.~,; ~lu~.ll :~x~u~e perfo!lllance by it for a period equal to :3 4 5 6 7 8 9 any such pr~ve~~~Cl~:t(.~~l~~ or~topp~~~~... .' $ '" ... ....;:: ',':' c':"'~~: 10 ,..,...:'.. - J:"'.':.~ JJ::lh,I~ tp.~,.cops!-ructior:.~f':,sa:l:~ b':li:.-~~~~..~.;Le~~ee shall..CPl!tp'.1,.Yt:~i~~:,~:q~ <!-p];?H~al?le }'~.~~ra~.t .S.t~~~1 ~C:Ull~y I~?:d \. ~ic~pal..~aw"!dmd.J.!:p~es;:~np. reg}lla~~o:p..s ot.thed~l?artmen:ts and , ~ .... ,. ~.. .- .. bureau!il haY'~g jur.is4ct.:!-o~ ~lere9f. .~~ssor., ~gree.~ : th~J ~Bsee. ~hall be.p~~~te~;~Q,conn~~~wi~.the exi~tin~:sewer! ~at~f( ~d el~ctric,~i~e~ca~ready.on ~he prope;ty of. the ~esspr withpu~ charge. n 12 13 14 15 Ie '.:. . . : \ ~.' . . ..... . L7 . ":.... .;.,..!. :.: (c~ ::;.~t .i,s a9'reed !='etween ..Lessor., an,d. L~~s~e,."!=f.a~ th bu~ldingto.be constracteg by Lessee on the land described herein --_'0 ............l.._.._ . ._. ....'....:.. shall. remain. the. .personal. p'roperty of Lessee and shall not become . ". -' _. to .... p ~.' '. . " . .' ~ _ ~. . a fi:x.t;.ur~_ ..... .....:.!:.. t..,.'-:.'~. .......~.. . ......:. 'r" ...,...~.::._:.. ... ..: ........__~.. ~8 19 20 21 . ." . .,.... :, .~.,i..; ..:tITLE. AND SUBORDINATION; .,Less?:r 2;eE::res,,:~t~ ,~d ,. -.0 ',_. ..' 22 wa~l;aI!:t;;5"t9.~j;:.i..1;..h~1~~,~ t~1;;1,e to. sa~d re~l prop7~ty and _1;a~.. . .~~tho~i~y. ~~.eF-t~~.~totn~.lease h~rein. ,.~esB~e desires to obtain a ti tl~. in~?ra!1ce: polic~ .wi th respec.t 1:,q ,. i ts: ~ea9~hold es.tate. T.;tl~....t~ .~ssee'B leasehol~ estate sha~l be..!ielivere;d to it..fr~e. and~.clea:z=, _excep~ing for covenants! q.ondi:t:i.olJs,: re~triq1;;!..on~"je"!S.ern~~~.~..:.~J.ght~ and r~.g~~ 0:1; way of reco~c.r, all . of ,.~hich !.shall. b~ ~u.bject;..tp the. appr.~v~l.,of.Le.ssee wi.thip. fourtee~ (14),. <;i.~ys after receipt of a pre:J.i~iIg1:1=y .tit17:z=eJ(.ort on the abo"\l'e-des.cri~I?9-.prelni.se8.. Title shall,a1.so be:s~t::'j~ct . , to .cuJ;"l:'ent;.paid. real..property taxes. Title ,ins~ance, if obtaine 23 24 25 26 27 28 29 30 31 32 ~ by Lessee, .sh~l~:l?e:.~17...?ts expense. '1') J ,.., . - --.............:........- ~~- ~.. ,. I. .:;-;3- ,"V; f.:"". , i".....:.r #; .1 . ; ry ~ \.:"jg 1 6. .TAXE&: Lessee shal}:', in addition to all of the sum ~'.. 2 agreed ,to be. paid "by.. it: under .this lea~e ,; pay all ..:tearand ::; personal. property'\ ta.xes. that shall; dU:t"~ing the term'. of. this 'lease , 4 be. assessei;!. ,against: .the demised' premi-s~s~;.' iessor. and. Lelirsee.. shill . , .. ,'.: ..,' - ":.. :!.. 5 each initiate proeeedings :with the ASSBssor'Of"'thiFCodnty'16f .' 6 Al/.!.Zl1ada to..segJ;egate:'the~demised premises fr6in the .area'kii6wn as 7 the .:Dublin, Square, <:-ao that.. a separate ~tax..'OiH.-will..:b~i:~oeived 8 for the"demised prem~ses '" .~,: :"; i' o..;~:'~:';\.. ,I .:....J: /. : 9 . . i..~ 7~'i PARKING::AR,EA:::",It is 'unden1tClod fu1d' agreed"'tftat the 10 P.~lin SqU~re::'Shopp.tng ;:Center .;ispresently. PBved I .1.ighted' 'aria ,mlllrked with ',:an :.-adequate rparJUng are a. ' That ~ said -'p.arkiiig t: ~fea. ,: is' operate.d,and.'m.ain~a~ed :by .Lessor and ..is 'for 't:he. parkirig,'6f~..,,:. auto/Uo.b.i,J,es iO,f'lpatrons. o.f .,the. Dublin Square '..ShoPPing CemterY:'iti-::: cl.udiI;lg. Les,~e.e .;.:,:if:tesSlee:',s. patrons snaIl have .the ,right-"to.''u,se..the park.i,ng 'area P:l; the. LDublin' :.:Square, 'Shoppirig. Center. for" cus-f6rrler b;, parl~i.ng .Iin. ad9-it.~on,.tGH1jhe. port.ion.'o"f the DUbU.n 'Square' Shopping CenteJ;' .that i,:J,ylaas.ed.by. ;i.t~'.herein.. .. Las.sae.l:s' agents p't:fmpl.oyees and officers ;.shaJ.l:.,not',=USl9 .the: Dublin Square Shoppirig Ce'nter;>-'.. ,. 11 12 13 14 15 16 17 18 19 20 except in .the:event.:that::a:.uah an area may. be. set,.aslde.'fbr'siich pu-rp~1Je by.. Lessor.:!.,., lN~R.,i.n.q-:;i..B-.:th;i5--3.:e:aBe~-SI~a-:l~":~e~~~~~_~ ' :.:'.;~Ni .p..l:~h.:i..b.i.:t;..J:,Q-iI;oo~-~ol<'~;G\-.J..l;lPQB4a.,-..anY-'4reBee:""~_e-tlle-!!,_i;i.ai!-E-ae1!'"1_.4.a€-3.-1:1~ ... \J\'l J..u.g_.w.i.t:Ao.W:-J.~Qtt-*'kil...;.e;;eeU811~G4:~.g4 ~FUI--a:li'eWH~_ 'lihe- ~€l'Eil:.-ieA .. O::L.t:.be,-.o.ulJJ.~.s~-I:1a..re-~heF>!rll19-€en;!;.El~;".J..ea..aeQ;"l3Y_.i-t.. ,. . :, 2:1 22 23 34 ~5 ,. Opera.ting and. maintenance costs for.any and all existing parking' .a3::~~aW~s :of ,the data of ,theexec'ution of this lea6.~- .shall .be:':porneiby:. Lessor;. and shall 1.nclude' without .!';\', ,.. .::,. ;6 ,7 .8 l,im,itp.tipn.. lab.or ,.~,inl>llrance "..taxes., ~l1aterials,: supplies- .ana.'-all oth~r' o<;:ostp:'of ope.rating :and ,repairing r lighting., cleaning,;' c:. " pain:ting,. relieving. of. .:rubbish, or deb:ds I policing _ and. inspe.cting. . 9 o 1 .,. : ., 8., ~ :.: . Lessor: shall not US e I or permit I Or allow any o.t,her person-to : Use::. any portion ,of the' Dublin: Square Shopping'" . Center- on which the demised premises are a. part, for..a ba.nR~ ' -4.;.. y, ._'-~-'~~T ,'" I -=-~~.:"";~~.h:..:.c -.~;':";'~':l:::C.-~ < .,-_.-......---...... -_.~.,_.------.._....--~--...-~ ----::ll.....~~_ 28 n I, .' ~ ......;r r I I f l 1 . . ,.'.!;.:;' ;;'!r~':~.li:Si:n:GNMEN't AND.'SUBr.ETTING: .Lessee . shall. have .the ::3 dght-1=-o:';afl.l:d:iQ", iinditigage or hypb'Ehecata .:this. J.ease;':or any in- :3 , tereo't- fin .:this'<'le'aae,::or permit the.. use :of' the 'premises .by..any 4 perBOli 'or~~r8onS' oth~r <than Lessee ; or'.s\ililet the (premises.. or any or its assigns part 'thereof~'!provided..:<t:.hat. in the . event iLeSs.e.e/shou~d ,cease to, 5 6 conduct '-th"\!' '. Ope-)!.litions' of.a bank, on :.the : dasigna tad .; premiseS.,. , Lesl!sor ..'sh"a1.l' : have tlhe ';option :;-t'o purchase Lessee's. bti.i.ldinq in accordanc~ . wl1:h'l"paraqraph ,."],0 ..psrtaining: to: Qptiqn.t;o. 'purchasl!! o1iildiii:g~.i; J:n..tha.i'Elvent- .Iassor!doesnot:,elect:'t;o exercise its. 7 8 9 10 optIon to purdhasl'i"LEisSEle I s ,'building,'" and .:Lessee. is .unable ,.to.:. . asl'ii9n '"('n." "sUbl~ts..sald 'premises ':"On ~ reasonable. .terms..for' the ,:purpos of -a..bank~ .Lasseei1'lia:t"aasiqn or.sublef.; all.fJor.any. plirt':'of'..,said premises {'..providing : such - assignmen t. Or'.isublatting 7 10>;,to, a:.busines that - dosil : not:: c6mpetewithT an ,.existi.ngbusiness. ,in : said:~tli.lblin: Squarei'..:Snopp1ng.:'.Ceri.t:etT.':NO 'part ..of the.14ased~ premisesl:shaU.: be. '. sublet:; for'~li 'pUt-:pbse'.'which is: lihlawfU1', '.liangerous, noxious or offensive. AnY"sucli':assigrimetlt or subletting:,shnll: not. be,'for. the conduct' of a- business that.would directly compete' with:. that 0 another. tenant i.ii~the.1>Ubl.in Squars..shoppi.ng:Center..... NO:'such ".. a8sigrui1en.t~'or '.SUliJ.~ttirtg' Auall 'operata. to::reliette. the... assigning party of: imY:'bbJ.:tgati.on:'or--liabili.ty arising, under the terms of this. lease';' unJ.e.~~'._~~ Other party hereto . shall. spee1fiaally.,agree In'..writlnlii" ~hat:.such,p:ropoaed 'assign~ent Shall_BO release.:,the 11 12 13 14 15 16 3.7 18 19 20 21 22 23 24 25 assignwl,r:or sUbletting party. 26 10.. OPTION ''1'0' I?URCHASE BUILDING~:\ In. the event Lessee should oea.ile ::.to', ct>nduot 'the opera. tioulii Of. a: bank ,on the--' demised premises, Lessee lahell- g1ve written. notice t.o' Lessor .:. Lessor,: 27 wi-th..tnthi:i:;ty" {3{J):J 1iaye~'frotn .the!'.dat.e of receipt of;. such writteD 29 :noti'Ce.: from j Lesse<:1,;.' shan-- have' the option..to purChase .the' bu.1ldin 30 :n 32 'at. LesseEiI'ii tinamort!i:lZeai costs; ": In th'e event. Lessor..should <, '.'_ .PUrchl!lse~.the."l:rUi.:l:ding.~ this: 'lease::shalt. termir1!1te. 'In: the lavent ; Less.or':t:-ejeote:'Sb.'i"d>.-option to purchase. this lease shall.continue -5- r;; ..'"bO! '~'_._"""'-~~~'i!l. ; .". c< j" - ~. I" ! 29. 30 31: 32 ~ r.- "j I l 1 in. full, force I and,-i'lfiect, :and Lessee may <;\ssign .or, gubl~t;,i~ 2 accordance ",ith Paragraph 9 herein pertaining ..to as!,'lignment; and 3 subletting; ;...LeE.\80r shall further bave the option to purchase 4 Lessee I 5 bUilding',.at Lessee's unamortized cost .in: the,!event::.of 5 destruction ;or condernnation;as: provided.in ParagraphfL12 and ,13,. . 6 ahouldjLa8a~e ~leot-to terminate this lease und~r the provisions 7 of said paragraphs.... In the event Lesso:r idoes .not elect;1;Q;. 8 exercise it!>.. option to -purchase under said paragraphs, Lessee. ,. 9 shalL have the .right:to sell or remove said building. In ~uCb. 10 event,,:if Lessee -d<;:>66 ..not sell or remOve s,aid bui:).ding, than .i,.t. ., shall become the property,.of Lessor I .and Lessor a<;Jress to.. ;nd~mnif and. save. Leesee. harmless from and against any;and all claims 11 12 13 arising; from'..Lesl:lee!.S:.1;ai:j.\.tre to. remove Baid building. from said 1 d by;.any pex.:~pn or,;~9..~~y property,. and f~om..and agaiI}.Bt.?,q.'.90sts~ l expenses t anq .1ia!>~litie8 which mOlY. be.. inqurredin or ill.. oonnectl.O i 14 15 16 wit:~ .any. BUch~,,?~aim of".p.l;"oq~eding brought thereon. ..,,~ Pmy ':; s ugh: alee tion ,by ei tl1cr. parir Y fltI'lL]., be,: maql? by w.l;"i tt~n not-ice. .t'X:<;::>IU: ,Onl:'l ,.. party . to ,.the oth!,!r,. on .or before thi:rty (30) ..days "il.f.~~~ !;'.l:le\dat~:.of, the mutual agreed termination.Pf.the lea~13 or. ~~'.natura:i-dlxp',ix.:a!::ion '=if the term,9f the ,lease. or the ren~w;;ll'.if 1;b~ Qpt:!:-QI}. tQr~ne~'.is.;exercised ,l;Jy Lessee.. . .. L., .. :.:14..: f,UT:r;LITIESo; ,,'Lessee. shall pay for, al1-.wEl"1;:ert. gas, heat",e~ectri~i~y<.al,19 p~:I'I,!~r,whictl, .during. tfle. term pf ,t4is..leaae, 17 18 19 20 21 22 23 24 may be flirnieshed.. tOr;Qr".used- on .the demised premises, . 25 26 12.,:.. GONDEMNATION'OF PREMISES: In the event of any taking or damag~ Clt j.ltll. lJr ,any partef.. the leased premia fi!~ 9r the buil<ling'$:,or ~y .iIrterest..therein,.,.by reason. of anyexerc;d.se .of". the "pqw~2;.': oJ;';:-~J:\linelnt dom?1in, wh~th~r ,by a condemnation prQceeding or .otherwif!~i.. 0:+'.. !l!clY. transfer of all or any part of the ~eased p:remises ort:he..:bu~lding? or any interest therein, made in avoid- I anca;;of an e~eroiae"o~ the po\...er of. eminent domain {all. ~f the. fole- going heil}gJ.gereaf.t~k. r~ferred . to as "appropriation ~}. p:;:io;:,,:to.<;:>r I' -6- 'r. .~._ ..~. '~____----..-,../ 27 28, ,....~ .. ~ .--. ;) t.. 1 dUring:.t~e .term hereo.fJ. (or any. extension .or renewal..there.of)", the 2 raghts.and9blig~~ions.of .Lessor and Lessee.with respect to:such 3 ~PP~c?p'riat:l,~nj.;~hall.be a,s hpr-?aftClr pIS..irlQcl. . ,.... 4 . .;-.'. ,:..: ,~l! the event of :.any appropriation ;.of.al:l; of ,.t:he. $ ~aas.ed: p.r;~:i.$.es and building, this lease shall terminate as of. t 6 date of sU~~.appropriatio.~ ..... . '::..; ..~ ,:;, ,. :In the -event of .an approp.ri.ation. ;of -.:le-ss than, all of 1;.he..leas~d.,p.remi.$es,,, this '+ease .shall. continu~ in full-forcE! and.J. ~ff~q~. _~~.cep1;',.;~s _.hereafter . provided in this .sect:l:on'.~ .The :.leased p"r~is~s. shall ;l:l~ reduced. i.by the portion .appropriate.d._ ': 'The total 7 8 9 10 11 ],ease rem:tp.l- .;O~ .1;h~.' .remainder of the;-term -immediately. p-rior -to appropI;,1.at~Pl1 s,halt be..i\bated in.an amount which 'beara,in:d:he '.,: 12 13 SC!lll8.. ,r~1;~o._ to'.~l.lch. .total lease.. rental as. the amount. 'of the '_1.. entire.,:a,,!~,d.,_ ,inclucl.;i.ng.compensation(.,damages) .and. ..interest,' if ' ' any., .%Ua4~:~i-:th,_:re5pect to the ,appropriation (including: any 14 15 16 se~e:r.an.q~.;~~ge8)d bea.l:'s to; ,the. value. of the entire l.'eased.... premi8:~~~nd~:.~ilding immediately prior to. :'the .app:r;gpriation'. ._ I i I ; ~ 17 18 I~-I t.h~. appropriation. shall either {i) render more than.. t\.i-eritv'. 19 per oen.t...~ (20 %) of- :the total' ground. floor area, of ;the:building on .tflB.leaaed.,:premiaes unavailable or witenantable., .'or . (.1i) sub- !. i stantially..i.mpair the use of the leased premises by Lessee, then in either such case, Lssseeshall have: the right. to. elect to termina:t!'l. t.tlis:'lEaee. Any such election shalL be mad.e. by wr! tten not;i. oe; ,~rom Le!iJsee. t o. Lessor 6n or before. thirty (301. .days after ~ th~_ date pf:. .~e appropriatiOn. . Jf" th.1s'leaae is terminated pursuant to this sactio Lessee aha;!.l be eo,titled to the award: for. any improvements. to the i ! leased p;-.el)1ises~,made. kly. Lessee plJJ5the. award.. fbr.. the ,interest of 20 21 22 23 24 25 26 27 28 2Si .Iassee in. this"lease. 30 31 .In.the event of, any appropriation. of leBs~than all 32 of the.leasedpremiaes and if this lease is not terminated pur- suant to thb section., Lessee shall be. entitled to the award for -7- I'. .___1..... 1 , I I any,improvementa made by Lessee .to the portion of.the leased ! I premises;. appropriated plus the, award for, th~, intez:e?t; .of Lessee.. i , Lessee shall. have the right to. elect to..mal)e any:restqration of th(e :::::::::t::~ ~:~ .leased premises I neCeB8itat~~ :~b~.:~~~:on..Ofp.' ~ar~te <aJ t... ...'.; .,13.. 'DES~ROC'l'ION OF PREMISES 1 I,n the. event: of ;a ~ destruction.oLtha said building during the said term, from any 2 3 4 5 6 7 8 cause; Lessee may.at its option, repair the same, but Buch.partia destruction shall. in no wise annul or. void this: lease ,: except, 9 10 that. Lassee shall be.. entitled to a .proportionate..deq.uction of. ren 11 while: 8uch~repairs.are.being.made,:sucb proportionate deduction 12 to be based upon the extent to' which the, making of ,. such, repairs shal~ interfere., with. the businesscarried'on by.; Les'see in the. said premis"'s. Les see may, at its option, make. such.., repairs with D a.reasonable. time,:but in no event more. than six (6) months, this 13 14 15 16 lease continuing. in full: force and effect. and. the .rent to bel propor1::~opa;-;~ly rebated as aforesaid in: this. paragraph provided. In.' the,. event. that .Lessee does not so elect to majte such repairs which cannot. be made in six (6) man the or such repairs cannot be. i I made under such . laws. and regula tiona, this lease may be, terminated 17 18 19 20 21 22 at the option. of either party,. ':.... ....::-m respect to any partial, destruction. which Lessor :: obligated,' to ..repair or may elect to repair. under the terms .of. thi paragraph, .the.. provisions of Section 1932, Subdivision 2, and of 23 24 25 Section 193.3, SUbdivision 4, of the Civil. Code of the State of Californ~a are. waived by Lessee. 26 27 I j j which. Less*e I and :Lessor i I I I I I ,~: :.. ~' : I.t. \ 14.. . FIRE INSURANCE: Lessor agrees that the. proceeds 28 29 of. any...fire:.and:extendad coverage insurance policy; on., has insured. said; premises t shall be payable to Lessee t, 30 waives .the .right to. claim the proceeds of any portion ..thereof 31 of any. such insurance policies. 32 15. LIABILITY INSURANCE, . This leasels made~upon the -8~ " " i ~~~;~~ :; .-:..... .;. :.. .,....: :;: ~:: ,::.'~".~;ii;';;:..:i~~;::~~;;:~~t~:.~.~ ~~~~~f-;i;~~~~~~;/,:;::/ ,.i.:..~~~~i:~::;..: ~::' :~~:::~"?:.:.~.;~::,~:~.~.. ~:,:.' ; '") 1 2 I ! ! I par~onB, including. Lessee, or property of ~ny kind whatsoever and! ! j I \ I express'condition that Lessor is to .be free from all I.lability and.claim.for damages by reason of any injury to any person or 3 4, to whomsoever b~;!..ongil'lg, including Lessee,' from . any cause'. or 5 causes, whatsoev!3r"while in, upon,' or in any way connectedwi-th 6. the.. said.cleased land, except the.; sidewalks and/or. parking. area adjacent: thereto, 'during the term of .this' lease or any extension.. heraof,o.l:;'!itly,:'occupancy. hereunder,. Lessae hereby covenanting and I ag.l:eeing.:to indemnify and .save harmless Lessor from all: liabilitY'1 losEl ,.coet:~.:,a.nd.,ob1igations on account of or arising out of any such injurie~ or losses. however occurring. 7.. 8 9. 10. 11 12 . L... Lessee further .agrees to 'take out and keep in i force during.the life hereof at Lessee's'axpense public liability I insurance ,to protect. against any liabil:l:ty to the publiaincident I to the. use of or resulting from any accident occurring in or about{ I I 13 14 15 16 said premises 1 the.liability under such.. insurance to be .not 'less 17. than $ ..mo,OOO.OO . .,for. anyone person injured, or $ 200,000.00 18 for. any one accident, or $2DO,OOO,OO for property damage. 19 I These.policies shall insure the contingent liability of Lessor, a~d 20 Lessee: agrees, if Lessee does not keep such insurance in full. force Harid 'effect the Lessor may taka out the necessary insurance. 21 22 and pay. the premium and.the repaying thereof shall be deemed to b~ part .of,the:rentaL and payment as such on the next day upon 23 24 which rent hecomes due. . ! 25 ~ ;_ 16.. ,QUIET ENJOYMENT: : The Lessee, upon the payment of 26 the. rent ,herein reserved and upon the perforIllance:of,all.the .term 27 28 of .this .~ease;' shall at all times . during the lease ..t::erlil and durin any.'extension.or renewal. term peaceably and.quietly:enjoy;the leased property with free access thereto without arty disturtiance 29 30 31 from the Lessor .or from any other person claiming through the Lessor. 32 '17. LICENSES: Lessee shall procure and pay'for alL I I I .J -:;- " " :" . '-;: . . '..; :.... ..:..:..; .... .:.::~: ..~"~":~f:~r;:;:.:i~~;~1~;i;~~;'::2~;'q1.;i;~:~:~~~~~:-~;;::.::~'::.:.:I~s:~~ ';;:Yls:~~~~~~':.:~:~~:;~~';~':;..~"f~.j ,~ licenses and permits needed in connection with the. operation of ',business, .and. shall keep..thf;!:.business open on' all regular busin.e~ :days. COMP.LrANCE WITH LAWS; The' iessee:..'shall, at is. ~..:..:, '-.. 18. . . . ~ sole expense ,.. promp.tly comply with .all present and future 'laws, regulationsbr rules.of any. county, state, fed~ral, ana other governmental autho,t;'i ty ~d any bureau .and . departrit~nt::theie;;.f whi~ may:be app~1cable to the leas eo property. The LeSsee shall have the,right~ after: written notice to the:Lessor to;~bnt~st by appropriata~legal.proceedings, diligently conducteu.in good'f~ith the.validity:;;br'application of. any suet! law, regulation, Or rule, and .to:.delay~compliari.ce~,t.herewith pending the prosecution.'~'f such p.roceedings,'.,provided no, civil or cd.min8.lliability'wo\ildl5e'in cllr17ed by" the Lessor and. no 1 ian or' charge would' be Imposed upon or..aatisfied:cout.;.of .the. leased property .by re.Cl~on--:of sue:h deiay. '.:. .1.9~. :.'ATTOillJEY' SPEES: In the event of. t.he.bringin'g' of any.action by.either party hereto as .against the .other .he~eon'or hereunderr 'or by reason .of .the breach of any' covenant .or conditi"o: on .the part...of. the other party, .or arising out of this lease, the. and::in. thaL e:vent the party in whose favor. final judgment shall bl entered shall be.entitled to have. and recover'of .and from the oth. reason-~b.le attorney' s fees to be fixed. by the '.cotirt wh'ereln such judgment. shal',b.be entered. 20. ~lOTICE: Any notice under this.' lease inust be in writing ~d'muBt be sent by registered or certified mai~ to the last ad~~e~s of the party to whom the n9t~?,e i~ to b~g~ven, as . . ~.>:. \.;" ) _:lo. , . .... . _ . . : .....' . ,.;. ~ designated'.by;.'such party in writing.; .The Lessor hereby designateE its address as: B.E.RKELEY LANP. COMPANY,..4550 San Pablo. Avenue, Oakland, California 94608. The Lessee hereby designates its address as: "P. O. Box 220, Pleasanton, California. 21. OPTION TO RENEW; L~ssee is hereby granted an option to renew this lease for a further period of twenty (20) -10-; .~ ':~.:':..~~~.~~=:16~~~:...~'::~ if",'... ..~l.~~.~',:~""''''''''''-~~."-'.' .... :-:-::-- '"""'\ .' * .', . .. ", - ~ '.. '. '. ~ -. .' ,.y.?a-r.:.B.(,lFr.~i:\~:..a,n9.,: ~.:f.ter,t~e ~x,~:lr.ation .of .tbe: .odginai te,rm at a :: rental o;f.:: QNE : HUNrJRED FIFTY-THREE. a!14.56/1QO: .D9,LLAR~ "t$lS3. 56} pe .~.;"';" ..~~:~'.:.'.:: -::'1:":: .:~""-.. . _ J.:.~'.j.'. ',:.':;' ~..;. ......... -, .. ..- ....., 'in,ciriBl'i'but. 'otherwise. ripon ,.ttia same'. terms. and: conditions. 'as herein .:..-;;;:.~;_~~:(\~~~~.:"': ::.,.,.. :..:. ..:,.J:.,7 .~.>......, :'..:,,:. :::cont:iiliied .e~c.ept', :the' .option to .,re~ew. .. ,wr1t:b:~r! -not1ce::of _._ ..) ~........__ .. .~. 1.-.1 ....... ',.. I ~.. ..,~' ,- . '.:.-, (';..:. :~'e:s~'~~! s~:~~~~n~~.<;;p. ~q. re~~'.(~.hi~' l~aIi~ ~ti~.lj, ~e.'.gi{en .t.? :Lessor :t.) f(:c;:, :~., ~':-.a ,H"~_,''', -:~-.;.. :-' "'(.~.;. ~:.... :- .:~.. . at least sixty .(60) days prior to the expiration of this lease. 22. ARBITRATION: In t.he event of any dispute between Lessor and Lessee relative to the provisions of this agreement, they shall e~ch select an arbitrator [ the two arbitrators 50 selected shall select a third arbitrator and the three arbitrato3 . ;. ...... .... so selected';'shall hear .",... . . de~i~{oh thereon shall and de~erm~ne the contpoversy and their be final and binding upon both Lessor J!""^-!"~""~' .~ and LesBe.!i~i~j4-ho s~ali bear tne cost of such arbitration equally ..,~". .,* .... .'_ ," . ..J-""'~ . . between,',~.ttle'm- .~ Upol;l notice by either party that. he desires to . 1,..~:. ,,\.. . . .,:.., haVe\~.'.~~tter Cl.tbitr~tedt the other party sha,ll within five (5) . ,0' 's, ,.4 ...... . ~: . :: .,1' " .. days ~:~C3P:fter. notify the: party requesting sucJ:: a~b.itration as to the \name..,and address of .his .arbitrator. The arbitration ahal , . '. ,.. .. ~ _, . . ..' ., .' ' .. ,1".':"" . \ . . \ be .heard' art2n::ompleted within thirty' (-3o)-'-days from the date the :~ \ . .first not.~ce of request to arbitrate was deposited in the United ..~_.., . .~ '. -" states mai~~?r personally dolivered t~.the:6ther; party. 23:; SUCCESSORS AND ASSIGNS: This agreement shall binc and inure to ':th.e. benefit of.the succeSSOrs, assigns, personal -;--'. representa~ives; heirs. and legatees of the respecti:ve parties. IN WIT~~SS WlffiREOF,. the parties have h~reunto affixed the~r signatures the 14th day of April, 1967. ." ':.!.. '" ...........:... '" - 'o.~ .. . BERKELEY LP.ND COMPANY, a corporation By 1-/lr;:,.~{ i.~t~-#;/ Q-~~<:) I. 1 ./ '~ ./,' Cffi \., ' " /. BYlV'~ ../ -to < [.. ,/~!/,f' 4'~ '7 ~ ;: :,0/ .1 ~ r.d . LESSOR "ifl.l\:. FIRS'!' l:lATIONAL BANK OF PLEASAl a corporat~on, BY".:) (l- ',',<,. i:q.~~!~\-N. <I " ."\ \. '. presi~t BY'" .I LA.. \.'v-' L. preaid,ll/ &: Cashie~ -11- , " '-. ..... ..':. ..:. ...... :.. ,.. ~,.:;:.:~::~ :~~~~:;,:;:~~:~~'.:,'::~~i~;;~;r:~:Jll;r~:':;:::,;::~~~~'~.~f.:~~;:r~~~:~~.':.~~t?Ff;.'~"~~~::~ '.'\"'''::"''::-;-''.'';~l;-~ ....'" ,....~......".~..M .-. ."- ...-~...'~... .,. ..., 1 .7 ~,._.....J-.":_ . . . , (""'::j LEASE AMENDMENT THIS LEASE AMENDMENT to Lease executed on April 14, 1967, is executed in duplicate at Pleasanton, California this 9th day of May 19~, between BERKELEY LAND COMPANY, a Califor . 1.0 einafter referred to as Lessor, and FIRST NATIONAL BANK, a C rporation, hereinafter referr€d to as Lessee. RECITALS WHEREAS Lessor and Lessee have entered into a Lease dated April 14, 1967 for a portion of the real property in the Dublin Square Shopping Center more specifically identified in said Lease, and;- WHEREP~S said Lease was extended by letter dated December 5, ../7 1986 to and including October 31, 2007, and; WHEREAS Lessor intends to make certain modifications to the Dublin Square Shopping Center to include, a fascia and signage upgrade of the center's exterior along with related parking lot, landscaping and lighting improvements that will significantly enhance the center's appearance; and WHEREAS Lessee desires to expand its building by approximately one thousand one hundred (1,100) square feet on the parcel of land which is the. subject of the Lease; NOW, THEREFORE, IT IS AGREED between the parties hereto as follows: .A.VD/A:WP50'LEASEAHD.CFB 3/5/90 1 Exhibit B t. ~()bO ;tVf f1 r~ ~"-"...:1 .'..:.~_J 1. Paragraph 2 shall be amended to add the following provisions: Upon completion of the expansion proposed by Lessee herein (which shall be defined as issuance of Certificate of Occupancy by the city of Dublin) Lessee shall pay to Lessor, in advance, at the address set out after the signature of Lessor or at such other place or places, a monthly rent of Nine Hundred Dollars ($900.0 ) to include payment in full for parking rights. n addl tlon, essee agrees to pay their pro-rata share of maintenance of common parking area, landscaping, and lighting, not to exceed $100.00 er mon Said sum shall be due on the first ay of each ca endar month in lawful money of the United states of America. Notwithstanding the above, Lessor further agrees - and acknowledges that said increased monthly rent herein described shall not commence until such time as Lessor has completed all phases of Lessor's proposed modification as outlined in the -attached letter of January 12,1990 by Elmer H. Hansen, to the Dublin Square Shopping Center,. of which the. subject property is a part. Completion of Lessor's project and the concurrent commencement of monthly rental obligations shall be evidenced by final approval of the City of Dublin .and recordation of a Notice of Completion by Lessor. Lessor further agrees to complete its improvements on or before December 31, 1990. 2. Building Expansion. Paragraph 4 is hereby amended to add the following additional provisions: (d) Lessee shall be permitted to expand the existing bank building on the demised premises / at its sole cost and expense, to provide for up to an additional 1,100 square feet, 1l1ore or less, together with all necessary fixtures and appurtenances. - Prior to commencing construction, Lessee shall obtain Lessor's approval of the plans therefor, prior to making such alteration, improvement, addition or change, which approval shall not unreasonably be withheld by Lessor. Lessee, at Lessee's own expense, shall comply with all present and future governmental requirements relating to the leased property only/ arising out of, in connection with, or necessitated by such alterations except as may otherwise be established herein. (e) Lessor agrees to cooperate fully with Lessee's planned expansion/pursuant to the provisions and obligation of both the. Lease and this Lease Alnendment. Lessor agrees to cooperate with Lessee to obtain approval of the City of Dublin. Lessor / s cooperation shall include r but not. be limited to the preparation of traffic engineering studies, application for variance( s) for parJdng r and such other items as may be required ;"VD/J..:1i1P50\LEASEAMD.crn 315/90 .. "'" ..,.,..,.",,- 7l ^, :'~"C') '..:>-."/ by the City of Dublin. (f) Should the expansion proposed by Lessee herein fail to obtain the necessary City approval, the provisions of this Lease Amendment relating exclusively to the proposed expansion will be of no force or effect. 3. Paragraph 9 shall be amended in its entirety to read as follows: .9. Assignment and Subletting: Lessee shall have the right to assign, mortgage or hypothecate this Lease, or .any interest in this Lease, or permit the use of the premises by any person or persons other than Lessee, or sublet the premises or any part thereof. No part of the leased premises shall be sublet for a purpose which is unlawful, dangerous, noxious or offensive. Any such a.ssignment or subletting shall not be for the conduct of. a business that would directly compete with that of another tenant in the Dublin Square Shopping Center. No such assignment or subletting shall operate to relieve the assigning party of any obligation or liabili ty arising under the. terms of this Lease unless the other party hereto shall specifically agree in writing that such proposed assignment shall so release the assigning or subletting party. 4. Paragraph 10 shall be amended in its entirety to read as follows: 10. to purchase event of ~ Any such election by ei ther party shall be made by ~itt~n notice from one party to the other, on or before thirty (30) days'after the date of the mutual IV aqreed termination of the Lease - e nat~l expiration of the term of the Lease or the renewal if the optlon to renew is exerclsed by essee. AVD/A'WP50\LEASE~.CF5 3/5/90 3 ;,rr':.+ C') ,"-c...,.", 5. Paragraph 21 shall be amended to add the following provi.sion: Lessee is hereby. granted and shall have, if not at the time in default under this Lease, an option to extend the term of the Lease for an additional period of fifteen (15) years only from October 31, 2007, but othervlise on the same terms, covenants, and conditions herein contained, provided however, that rent shall be adjusted to the then current fair market value as defined below. Thereafter rent shall be subject to adjustment every three years to an amount equal to the lesser of (i) the change in the Consumer Price Index; or (ii) seven percent (7%). Lessee shall notify Lessor in writing not less than one hundred eighty (180) days in advance of the expiration of the then. current term of its intent to extend this Lease.. 6. Fair Market Value. "Fair Market Value" shall mean the fair market base rent as defined below, at the time or times in question for the premises, based on the prevailing rentals then being charged to tenants of ground leases in the general vicinity of the premises of comparable size, location, and under similar circumstances as the subject premises. 7. Determination of Fair Harket Value. Lessor and Lessee shall endeavor to agree on the fair market value. If they are unable to see agree within thirty (30) days after receipt by Lessor of Lessee's notice of exercise of its option to extend, Lessor and. Lessee shall each designate a licensed real estate appraiser who is active in the leasing of office space in the general vicinity, and the two real estate appraisers shall mutually appoint, a third appraiser similarly qualified~ The three appraisers shall then determine the fair market value by majority vote, and this determination shall be binding on the Lessor and Lessee. Lessor and Lessee shall each bear the cost of its appraiser and shall share equally the cost of the third appraiser. AVD/A:WP50\~EAS~.CFS ~/5/90 . 4 /.~ . .1 () IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease Amendment on the date first above written. BERKELEY LAND COMPANY, A california Corporation By: fl'7 ---<fti~#f! By: (f~ < LESSOR By: NATIONAL BANK, By: LESSE~ i AVD/A:WPSO\LEASEAHD.CPB 315/90 5