FIRST AMERICAN TRUST COMPANY (S.T.C. CORP.) (2)

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#00 RENT ADJUSTMENT(S) STANDARD LEASE ADDENDUM First Arerican Tart,a • ■r . cTazity, ^ Wass i . -- if a r■ i (Lessee) atY Of Sarta Am Address of Premises: 1415 - 1417 :; , arx,, Cn 927111 t Paragraph A. RENT ADJUSTMENTS: The monthly rent for each month of the adjustment periods) specified below shall be increased using the method(s) indicated below: (Check Method(s) to be Used and Fill in Appropriately) 1. Cost of Living Adjustment(s) (COLA) a. On (Fill in COLA Dates): M3Y 1, 20M $ b1gy 1, 20M the Base Rent shall be adjusted by the change, if any, from the Base Month specified below, in the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select one): ❑CPI W (Urban Wage Earners and Clerical Workers) 0 1 U (All Urban Consumers), for (Fill in Urban Area): Tr e el� _tit:sir� All Items (1982-1984 = 100), herein refrred to as "CPI" b. The monthly rent payable in accordance with paragraph A.I.a. of this Addendum shall be calculated as follows: the Base Rent set forth in pafagf&ph4,5-of the attached Lease, shall be multiplied by a fraction the numerator of which shall be the CPI of the calendar month two -months prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take effect, and the denominator of which shall be the CPI of the calendar month which ism months prior to (select one). Litho first month of the term of this Lease as set forth in pe ap44.a ("Base Month") or ZlFill in Other "Base Month"):,, , - Z ri l . The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any such new monthfq rent be less than the rent payable for the month immediately preceding the rent adjustment. c. In the event the compilation and/or publication of the CPI shall be transferred to any other governmental department or bureau or agency or shall be discontinued, then the index most nearly the same as the CPI shall be used to make such calculation. In the event that the Parties cannot agree on such alternative index, then the matter shall be submitted for decision to the American Arbitration Association in accordance with the then rules of said Association and the decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall be paid equally by the Parties. ❑ 11. Market Rental Value Adjustment(s) (MRV) a. On (Fill in MRV Adjustment Date(s): the Base Rent shall be adjusted to the "Market Rental Value" of the property as follows: 1) Four months prior to each Market Rental Value Adjustment Date dPscri above, the Parties shall attempt to agree upon what the new MRV will be on the adjustment date: If agreement cannot be reached with' dldays, then: (a) Lessor and Lessee shall immediately appoint a tually acceptable appraiser or broker to establish the new 1virRV within the next thirty days. Any associated costs will be split equally b een the Parties, or (b) Both Lessor and Lessee shall each i ediately make a reasonable determination of the MRV and submit such determination, in writing,to arbitration in accordance wit�fol g provisions: (i) Within fifteenfter, Lessor and Lessee shall each select an ❑ appraiser or ❑ broker ("Consultant— check one) of their choice to act as he two arbitrators so appointed shall immediately select a third mutuaily acceptable Consultant to act as a third arbitrator. r (ii) e three arbitrators shall within thirty days of the appointment of the third arbitrator reach a decision as to what the actual MRV for the Pre es is, and whether Lessors or Lessee's submitted MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding he Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter be used by the Parties. (it!) If either of the Parties falls to appoint an arbitrator within the specified fifteen days, the arbitrator timely appointed by one o am shall reach a decision on his or her own, and said decision shall be binding on the Parties. (iv) The entire cost of such arbitration shall he paid by the party whose submitted MRV is not selected, ie. the .on at is NOT the closest to the actual MRV. 2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the month immediately preceding e rent adjustment Initials: RENT ADJUSTMENT(S). Page 1 of 2 Initials: For this form, write: American Industrial Real Estate Association, 700 S. Flower Street, Suite 600, Los Angeles, Calif. 90017 01997 —,American Industrial Real Estate Association