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EXERCISE OF SECOND ONE-YEAR OPTION AND <br />AMENDMENT TO NON-EXCLUSIVE OPERATING <br />AGREEMENT FOR PUBLIC PARKING GARAGES <br />AND SURFACE LOT STAFFING AND FIELD <br />MANAGEMENT BETWEEN THE CITY OF <br />SANTA ANA AND PARKING CONCEPTS, INC. <br />THIS EXERCISE OF SECOND ONE-YEAR OPTION AND AMENDMENT TO NON- <br />EXCLUSIVE OPERATING AGREEMENT is entered into on November 15, 2010, by and <br />between Parking Concepts, Inc. ("Operator") and the City of Santa Ana, a charter city and <br />municipal corporation of the State of California ("City"). <br />RECITALS: <br />A. The City entered into the Non -Exclusive Operating Agreement for Public Parking <br />Garages and Surface Lot Staffing and Field Management Between the City of Santa Ana and <br />Parking Concepts, Inc. (Agreement #2007-253) dated December 31, 2007 ("said Agreement"), <br />with Operator by which Operator has operated and managed the City's Parking Garages and <br />Surface Parking Lots for two years. <br />B. In accordance with said Agreement, the parties exercised the First Option to said <br />Agreement on November 2, 2009. <br />C. In accordance with the terms and conditions of said Agreement, the parties wish to <br />exercise the second one-year option to extend the term for one (1) additional year. The parties <br />also wish to amend certain terms of said Agreement. <br />WHEREFORE, in consideration of the mutual and respective covenants and promises hereinafter <br />contained and made, and subject to all of the terms and conditions of said Agreement, the parties hereto do <br />hereby agree as follows: <br />1. Section A. of the Recitals shall include the following language: <br />"5. Parking Garage E: The surface parking lot with 67 spaces located at the corner of Third <br />Street and Bush Street, Santa Ana, CA 92701." <br />2. Section 1. A in "Definitions" shall include Parking Garage E, and Exhibit A shall be amended to <br />include this additional parking lot as set forth in the amended Exhibit A, attached hereto and incorporated <br />herein. <br />3. Section 2 "Scope of Services" shall be amended to add valet parking services and the installation of <br />certain improvements to enhance garage security and operations, subject to prior approval by the City. <br />These improvements may include, but are not limited to, securing the ground floor perimeter of the garages <br />where possible; upgrading/adding lighting; installation of security cameras and improving circulation, <br />EXHIBIT 1 <br />25M-3 <br />