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02
City of Pleasanton
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CITY CLERK
CITY CLERK - TYPE
AGENDA REPORT
DOCUMENT DATE
10/17/2017
DESTRUCT DATE
15Y
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operated, at reasonable cost, for its then-current use, then, subject to the rights and consent of <br /> Lenders, this Lease shall, at Lessee's sole option, terminate as of the date of the Taking <br /> Section 10 2 Continuation of Lease and Presumption of Restoration Lessor and Lessee <br /> agree that, in the event of Taking that does not result in the termination of this Lease pursuant to <br /> Section 10 1 above, this Lease shall continue in effect as to the remainder of the Leased <br /> Premises, and the Net Condemnation Award will be disbursed in accordance with Section 10 4 <br /> below to Lessor and Lessee and/or any Lender, if the terms of the applicable Leasehold <br /> Mortgage so require, and shall be used so as to make the same as complete, unified and efficient <br /> operating unit as nearly as reasonably possible to the condition existing pnor to the Taking, <br /> subject to any applicable requirements of the Lender <br /> Section 10 3 Temporary Taking If there shall be a temporary Taking with respect to <br /> all or any part of the Leased Premises or of Lessee's interest in this Lease, then the Term shall <br /> not be reduced and Lessee shall continue to pay in full all Rents, Impositions and other charges <br /> required herein, without reduction or abatement thereof at the times herein specified, provided, <br /> however, that Lessee shall not be required to perform such obligations that Lessee is prevented <br /> from performing by reason of such temporary Taking. <br /> Section 10.4 Apportionment of Award If there is a Taking, whether whole or partial, <br /> Lessor and Lessee shall be entitled to receive and retain such separate awards and portions of <br /> lump sum awards as may be allocated to their respective interests in any condemnation <br /> proceedings, or as may be otherwise agreed, taking into consideration Lessor's fee interest in the <br /> Land (as encumbered by this Lease) and reversionary interest in the Improvements upon the <br /> expiration of the Term or termination of this Lease If the Leased Premises are restored as is <br /> contemplated in Section 10.2 above, Lessee shall be entitled to recover the costs and expenses <br /> reasonably incurred in such restoration out of any Net Condemnation Award payable to Lessee. <br /> Thereafter, if the condemning authority does not make separate awards, the Parties agree that any <br /> Net Condemnation Award will be allocated as follows on a proportionate basis reflecting the <br /> Parties' respective interests in the Land and Improvements and the remaining duration of the <br /> Term as follows <br /> (A) Award on Total or Substantial Taking. In the event of a total or substantial <br /> taking, the award shall be apportioned as follows, in the following order <br /> (a) To the Lenders in an amount equal to the amounts owing on the Leasehold <br /> Mortgages <br /> (b) To Lessor that portion of the award equal to the fair market value of the <br /> Land. <br /> (c) To Lessee, that portion of the award equal to the fair market value of the <br /> Improvements (subject to Lessor's reversionary interest), less the amount paid to the <br /> Lenders pursuant to (a) above <br /> (d) Any "bonus value" (i e , any portion of the award attributable to the fact <br /> that the rent payable by Lessee under this Lease is at a below market rate) shall be paid to <br /> 31 <br /> 191\52\1656915 8 <br /> OAK#4834-9609-1684 v9 <br />
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