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HomeMy WebLinkAbout2003-11-17 City Council (12)City of Palo Alto City Manager’s Report 8 TO:HONORABLE CITY COUNCIL FROM:CITY MANAGER DEPARTMENT: PLANNING AND COMMUNITY ENVIRONMENT DATE: SUBJECT: NOVEMBER 17, 2003 CMR: 513:03 APPROVAL OF AN ASSIGNMENT AND ASSUMPTION AGREEMENT TRANSFERRING STANFORD SHOPPING CENTER PERFORMANCE RESPONSIBILITIES FROM STANFORD TO SPG CENTER, LLC UNDER THE 1997 DEVELOPMENT AGREEMENT AND THE ANNUAL PUBLIC REVIEW OF COMPLIANCE OF DEVELOPMENT AGREEMENT WITH STANFORD UNIVERSITY FOR THE SAND HILL ROAD PROJECTS REPORT IN BRIEF The 1997 Sand Hill Corridor development agreement requires Stanford University to provide an annual report to the City Council. A memorandum from Stanford Management Company regarding 2001-02 activities is attached. This staff report reviews the report and identifies additional activities that have occurred since the report was prepared on May 30, 2003. These additional activities include approval from the City of Menlo Park and the County of San Mateo of the final phase of the Sand Hill Road expansion and bridge widening; County of Santa Clara approval of Stanford Golf Course modifications to accommodate widening of Sand Hill Road; and start of construction for the Classic Residence by Hyatt. It is recommended that the City Council find Stanford University has complied in good faith with the terms and conditions of the development agreement. In addition, Stanford University and Simon Property Group request that the City consent to an Assignment and Assumption Agreement assigning Stanford’s obligations under the 1997 development agreement and the Sand Hill Corridor Maintenance Agreement to the Simon Property Group. The Assignment Agreement effectively "severs" the Shopping Center-related obligations from the other obligations under the Stanford Agreements so that Simon’s rights will not be impaired in the event of default by Stanford that does not relate to the Shopping Center. It is recommended the City Council consent to the Assignment and Assumption Agreement. CMR:513:03 Page 1 of 5 RECOMMENDATION Staff recommends that the City, Council: 1. Find that Stanford University has complied in good faith with the terms and conditions of the development agreement. 2.Direct staff to issue a Certificate of Compliance to the University, according to the provision of Section 10(a) of the Agreement, stating that: a. The Agreement remains in effect, and b. Stanford University is not in default. o Consent to the Assignment and Assumption Agreement between Stanford University and the Simon Property Group regarding the 1997 Stanford development agreement and the Sand Hill Corridor Maintenance Ageement. BACKGROUND In June 1997, the City Council approved Comprehensive Plan amendments, zoning changes and design applications for the Sand Hill Corridor Projects (Projects). The Projects include the Stanford West Apartments (Apartments), Senior Housing, Shopping Center modifications and a set of roadway modifications, including the widening of Sand Hill Road to four lanes from Santa Cruz Avenue to Arboretum Road and a two-lane extension from Arboretum Road to E1 Camino Real. A development agreement vesting these approvals was entered into between Stanford and the Ci~ and was effective on August 14, 1997. The development agreement requires annual City Council review of Stanford’s compliance. DISCUSSION The attached May 30, 2003 memo from Diane Healey, staff member of the Stanford Management Company, describes Stanford’s 2001-02 activities related to implementation of the development agreement. These activities included obtainment of the final Certificate of Occupancy for Stanford West Apartments and Final Architectural Review Board (ARB) approval for Classi( Residence by Hyatt. Other activities included the completion of Building V and Building W; opening of Pottery Barn, Talbot’s, Furta, Coldwater Creek, P.F Changs, World Savings, and Abercrombie & Fitch; and the opening of the Quarry. Road and E1 Camino Real intersection. Also completed but not included in the memo was the March 6, 2003 ARB review and approval of two additional conditions added by the ARB during the April 4, 2002 hearing involving exterior materials and colors for Classic Residence by Hyatt. Since the May 20, 2003 memo, the following activities have occurred: The City of Menlo Park and the Coun~ of San Mateo approved the final phase of the Sand Hill Road expansion and bridge widening. These approvals were received Nov 12, 2002 and January 1, 2003, respectively. CMR:513:03 Page 2 of 5 Approval has been obtained from the County of Santa Clara for modifications to the Stanford Golf Course to accommodate the widening of Sand Hill Road. ¯Ground breaking ceremony for Classic Residence by Hyatt occurred on September 30, 2003. Construction is anticipated to last for 24 months. ¯Transfer of Stanford Shopping Center to SPG Center, LLC. Earlier this year, SPG Center, LLC, an affiliate of Simon Property Group, a publicly traded real estate investment trust ("Simon"), acquired Stanford Shopping Center from Stanford University, subject to a long-term ground lease. Stanford wishes to assign to Simon, and Simon wishes to assume, Stanford’s obligations under Stanford’s 1997 development agreement with the City and the Sand Hill Corridor Maintenance Agreement that relate to the Shopping Center. Under Section 18(f)(1) of the development agreement, no right or interest under the development agreement can be transferred or assigned without the prior written consent of the City Council; consent may not be unreasonably withheld. The development agreement and the maintenance agreement (collectively, the Stanford Agreements) contain provisions that apply to the Shopping Center, the Hyatt senior housing project (the Senior Housing), and other property owned by Stanford. Under the attached Assignment and Assumption Agreement (Assignment), only the Shopping Center-related obligations under the Stanford Agreements (referred to in the Assignment as the "Shopping Center Project Rights and Obligations" and the "Maintenance Rights and Obligations") are assigned to and assumed by Simon. Stanford is not released from any of its obligations and remains liable to the City for all of its obligations and liabilities under the Stanford Agreements. In the event of a breach of any of the Center-related obligations assumed by Simon, the City may exercise its rights and remedies against Stanford or against Simon. The Assignment contains provisions that effectively "sever" the Center-related obligations from the other obligations under the Stanford Agreements, so that Simon’s rights will not be impaired in the event of a default by Stanford that does not relate to the Shopping Center. In particular, a Stanford breach (other than one arising out of a breach by Simon of Center-related obligations) will not constitute a default by Simon under the development agreement or the management agreement, and, in the event of such a Stanford breach, the City will not exercise its rights or remedies in a manner that would adversely affect Simon or the development, use, operation, or occupancy of the Shopping Center. (The Assignment and Assumption Agreement between Stanford and the developer of the Senior Housing approved by the City in 2000 similarly "severed" the development agreement obligations related to the Senior Housing from Stanford’s other obligations.) The Department of Planning and Community Environment has reviewed the applicable provisions of the Assignment to CMR:513:03 Page 3 of 5 confirm both that the Center-related obligations are functionally "severable" (i.e., can, as a practical matter, be separated from Stanford’s other obligations) and that the obligations being assumed by Simon include all of the obligations under the Stanford Agreements that relate to the Shopping Center. By consenting to the Assignment, the City is consenting to "severing" the Center- related obligations from the other obligations under the Stanford Agreements in the manner described above. The City is also agreeing that Simon and its lenders will have the right to receive Certificates of Compliance as provided for in the development agreement, and that City will send to Simon’s lenders copies of any notices of default that are sent to Stanford, and copies of any notices of intent to modify or terminate the development agreement that affect the Shopping Center site. The City made similar agreements in connection with its approval of the Assignment and Assumption Agreement for the Senior Housing. RESOURCE IMPACT None. POLICY IMPLICATIONS This report does not represent any changes to existing City policies. ENVIRONMENTAL REVIEW Issuance of the Certificate of Compliance and consent to an Assignment and Assumption Agreement are not projects under the California Environmental Quality Act, and no environmental assessment is required. ATTACHMENTS 1. May 30, 2003 memo from Diane Healey 2. Assignment and Assumption Agreement (Council Only) PREPARED BY: ICP Planner DEPARTMENT HEAD REVIEW: Director of~Planning and Community Environment CMR:5 !3:03 Page 4 of 5 CITY MANAGER APPROVAL: HARRISON Assistant City Manager cc:Stanford Management Company (Jim Inglis, Diane Healey) Stanford University (Larry Horton) City of Menlo Park (David Boesch) County of Santa Clara (Ann Draper) County of San Mateo (Gaye Quinn) David Newman Charles Carter Bill Phillips Jean Snider CMR:513:03 Page 5 of 5 Attachment May 30, Lis~ Grote Chief Planning Official Oi~ of Palo Alto Dep~rtmsnt of Planning and Communi .ty Environment 250 Hamilton Avenue P.O. Bo~ 10350 Palo Alto, CA 94~03 Sand Hill Road Projects Annual Report August 2001. July-2002 De~,r. Lis~., Pursuant to the Development Agreement, this report, is being provided for the period from August 1:200"1 to July 31, 2002, Development Agreement compliance continues to be stdu-,tiy adhered to by Stanford. The following highlights the significant activity for the above reporting period: ,Stanford West Aoartments ¯ Januab, 2g, 2002: Stanford West Apartments regeives finat Certificate of O¢",.upanoy. March 4, 2002: KnowledgeBeginnings child care center opens for _business, , June 6, 2002: Stanford West Apartment retail ~enter opens for business. £_e_ni0r Housin,q . April 4, 2002: Classic Residence by Hyatt receives final Architectural Review Board approva! for 388 independent living units and e Health Care Center housing 38 Assisted Living units, 24 memory impairec! units and a 44 skil~ec~ nursing unit~. ¯Classic Residence by Hyatt i~ expe~ed to oommen~ oon~ruotion of the Senior Housing by mid 2008 and be oomptetec; in 2005, Stanfor~ Shoppin~ Center ¯O=ober 2001: Completion of Building V & Buiiding W ¯November 2001: Pottery Barn, Talbot’s, Furls and Coidwat~r Creek open for busine~, November 2001; Stanford Shopping Center i~ee plantin.~ program conCludes, ,April 2@, 2002: P.F. Chang’s in Building W opens for business, ,June 2002: World Savings in Building W opens for business. ,July 2002: Aber~rombie & Fitch in Building V opens for business. Road_____.~ ,August 14, 2001: Quarry Road and E! Camino Real interse~on opens. ¯April 2002: All easements granted, as required by the Cib’ o~ Polo ~o for the completed potion of the Sand Hili Road proje=s. , Apdl B, 2002 - Santa Clara Coun~ Planning Dire~or app~ves As~sodSu~eyor~a~er ~s for the vaca~on~ and anne~ons of the Sand Hilt Road, Pasteur, Oua~ Road Right-of-Ways. ¯May 5, 2002: Polo ~o Ci~ Council approves the four Sand Hil{ Road annexations. Check #1940763 in the amount of $2,000, dated May 23, 2003, has been sent under separate cover. Since_rely, Diane H~ai~y Managing Director, Real Estate co:Sandy Skaggs!Bingham Mc~3utchen Additional language for Stanford Shopping Center Consent: Nothing in the City’s consent to this Agreement, or in the City’s agreeing to the terms and conditions set forth therein, shall be deemed the City’s agreement that any of the Conditions of Approval and Mitigation Measures identified in Exhibit B as "completed" have in fact been completed. Without limiting the generality of the foregoing, although the lighting plans called for under Mitigation Measure 4.2-13 have been submitted to and approved by the City, the implementation of the lighting plan in accordance with the Mitigation Measure (including but not limited to by maintaining building exterior and parking lot lighting at the lowest intensity and energy use adequate for its purpose and avoiding unnecessary continued illumination, such as illuminated signs) is ongoing and, notwithstanding anything to the contrary provided in this Agreement, such ongoing implementation will be deemed to be "Shopping Center Project Rights and Obligations" for all purposes under the Agreement, and not "Completed Obligations." Notwithstanding anything contained in Section 5.6 of this Agreement, any sale, transfer or assignment by Assignee of any right or interest under the Development Agreement shall require the prior written consent of the City Council and shall be subject to the provisions of Section 18(f) of the Development Agreement. Recording Requested by and When Recorded Return to: SPG CENrI’ER, LLC c/o Simon Property Group, L.P. National City Center !15 West Washingon Street Lndianapolis, Indiana 46204 Attn: Richard C. Rody, Jr. Division Counsel, Legal Development And Big Box Leasing Division Attachment 2 1 SPACE ABOVE THIS LINE FOR RECORDER’S USE ASSIGNMENT AND ASSUMPTION AGREEMENT Development Agreement and Sand Hill Corridor Maintenance Agreement Shoppin~ Center Project THIS ASSIGNMENT AND ASSUMPTION AGREEMENT ("A~eement") is made and entered into by and between THE BOARD OF TRUSTEES OF THE LELAND STANFORD JUNIOR UN1-VERSITY, a body having corporate powers under the laws of the State of California ("Stanford"), and SPG CENTER, LLC, a Delaware limited liability company ("Assig-nee"). RECITALS A. Stanford operates the Leland Stanford Junior University (common3,known as Stanford University). Stanford owns approximately seventy (70) acres of improved real property commonly referred to as the Stanford Shopping Center, being a portion of the lands of Stanford University, located in the City of Palo Alto ("City"), County of Santa Clara, State of California, and more particularly described in Exhibit A attached hereto (the "Shopping Center Site"). B.Stanford and Assignee have entered into that certain Agreement to Lease dated as of June 26, 2003 (the "Agreement to Lease"), that certain Assi=m’tment and Assumption of Ground Leases of even date herewith (the "Assi~mament of Ground Leases") and that certain Assigrmaent and Assumption of Tenant Leases of even date herewith (the "Assigrmaent of Leases"), various other assignments that will be effective concurrently, and that certain Ground Lease of even date herewith (the "Ground Lease"), pursuant to which Assi~ee will ground lease, operate, market, maintain and improve the Shopping Center on the Shopping Center Site. C.Stanford and the City entered into that certain Development Ageement dated August 14, 1997 and recorded in the Official Records of Santa Clara County on .December 3, 1997 as Document No. 13962429 and the First Amendment to Development Agreement dated 43361k36054v7 April 23, 2001 and recorded in said Official Records on May 16, 2001, as Document No. 15681749, amending Section 6(0 (as amended, the ’~Development Agreement"). Stanford currently is seeing the approval of the City to a Second Amendment to Development Agreement to further amend said Section. D. Stanford and the City entered into that certain Sand Hill Corridor Maintenance Agreement dated May 24, !999 and recorded in Official Records of Santa Clara County on May 27, 1999 as Document No. 14833454, and that certain Amendment No. One to the Sand Hill Corridor Maintenance Agreement dated April 15, 2002 and recorded in Official Records of Santa Clara County on June 12, 2002 as Document No. 16311085 (as amended, the "Maintenance Agreement"). E.As of the Effective Date (as defined in Section 1.5 below) and subject to the City’s consent: Stanford desires to assign to Assignee certain of Stanford’s remaining rights under the Development Agreement with respect to the Shopping Center Project only, and Assignee desires to accept and assume certain of Stanford’s remaining obligations under the Development Agreement with respect to the Shopping Center Project only (collectively, as described and defined more particularly in Section 1.3 below, the "Shopping Center Project Ri=~.hts and Obligations"); and Stanford desires to assign to Assig-nee certain of Stanford’s remaining rights under the Maintenance Agreement, and Assignee desires to accept and assume certain of Stanford’ s remaining obligations under the Maintenance Agreement (collectively, as described and defined more particularly in Section 1.4 below, the "Maintenance Rights and Obligations"). NOW THEREFORE, in consideration of these promises, and of the agreements, covenants and conditions contained in this Agreement and the Agreement to Lease, the Ground Lease, the Assignment of Ground Leases and the Assumption of Leases, the parties agree as follows: ARTICLE 1 ASSIGNN[ENT AND ASSUMPTION OF SHOPPING CENWER PROJECT RIGHTS AND OBLIGATIONS AND MAINTENANCE RIGHTS ANI) OBLIGATIONS 1.1 Assi,onment. Stanford assiggns to Assignee, as of the Effective Date (as defined in Section 1.4 below), all of Stanford’s rights, title and interest in and to the Shopping Center Project Ri~hts and Obligations and the Maintenance Rights and Obligations. 1.2 Assumption. As of the Effective Date, Assignee accepts Stanford’s assignment of the Shopping Center Project Rights and Obligations and the Maintenance Rights and Obligations. 1.3 Shopping,Center Projeq~,Rights and Obligations. For purposes of this Agreement, the term "Shopping Center Project Rights and Obligations" shall mean and include all of the remaining rights and obligations of Stanford under the Development Agreement 43361~6054v7 2 accruing on and after the Effective Date and before the expiration or earher termination of the Agreement to Lease that: (a) are set forth in those sections of the Development Agreement that apply exclusively to the Shopping Center Project or (b) are set forth in those sections of the Development Agreement that apply non-exclusively to the Shopping Center Project, but only with respect to the share of such ri~hts and obligations that is proportionately allocable to the Shopping Center Site or the Shopping Center Project; provided, however, that (y) the Shopping Center Rights and Obhgations shaB include only those Conditions of Approval and Mitigation Measures that are specifically identified in the Stanford Sand Hill Road Corridor Projects Mitigation Monitoring Program, Stanford Shopping Center attached hereto as Exhibit B as being the responsibility of Assignee, and (z) the Shopping Center Project Rights and Obhgations shall not mean or include, and Assig-nee shall have no responsibihty for, (i) any of the obhgations of Stanford under the Development Agreement that have been completed as of the Effective Date, (collectively, the "Completed Obhgations"), including without limitation any obhgations that are identified in Exhibit B as completed, and, except as otherwise provided in Exhibit B, any obhgations pursuant to Sections 6, 7 or 8 of the Development Agreement, except that Stanford may request Assignee’s consent, and Assignee shall not unreasonably withhold its consent, to any easements required pursuant to Section 6(a)(3) of said Agreement that affect the Shopping Center Site; (ii) an?, obhgations imposed on the Shopping Center Site or the Shopping Center Project by, or on the recommendation of, the City’s Architectural Review Board, including without limitation any conditions imposed in connection with 94-D-5, 96-DEE-3, 94-ARB-258, 94-ZC-.17, 96-DEE-4, 94-ARB-257, 94-ARB-259, 96-ARB-92, 94-EIA-35, 96-CPA-2, 98-ARB- 153, 98-ARB-182, 98-ARB-183, 99-ARB-101, 99-ARB-164, 00-ARB-40, 00-ARB-104 and 00- ARB-168 (collectively, the "ARB Conditions"); or (’fii) any of the obhgations of Stanford that relate to or arise in connection with: (1) the construction of any pubhc roadway-related improvements, including without hmitation the widening of Sand Hill Road; or (2) the operation of the Marguerite Shuttle, except for Assignee’s contribution to the operation of the Margz~erite Shuttleidentified in Exhibit B. Stanford shall remain responsible for any and all Conditions of Approval and Mitigation Measures that are not specifically identified in Exhibit B as being the responsibihty of Assig~nee. 1.4 Maintenance Rights and Obligations. For purposes of this Agreement, the term "Maintenance Rights and Obligations" shall mean and include those fights and obligations of Stanford under the Maintenance Agreement accruing on and after the Effective Date and before the expiration or earlier termination of the Agreement to Lease that are set forth in Exhibit C, attached hereto. 1.5 Effective Date: Subsequent Termination of A~eement to Lease. For purposes of this Agreement, the "Effective Date" shal! be the later of: (a) the date the City grants its consent to the assignment and assumption of the Shopping Center Rights and Obligations and the Maintenance Rights and Obligations by executing this Agreement; or (b) the date set forth in the Ground Lease as the "Commencement Date" thereof. Upon any termination of the Agreement to Lease, the assig-nment and assumption of the Shopping Center Riglats and Obligations and the Maintenance Rights and Obligations shall automatically terminate, Assignee shall have no further rights or obligations pursuant to the Shopping Center Rights and Obligations or the Maintenance Rights and Obligations and all of the Shopping Center Riglats and Obligations and the Maintenance Rights and Obligations shall automatically revert to Stanford without any further assignment or other documentation. 43361k36054v7 3 ARTICLE 2 RIGHTS AND REMEDIES 2.1 Stanford’s Continuing Liability for Shopping Center Project Rights and Obligations and Maintenance Rights and Obliga..tions. Notwithstanding Assig-nee’s assumption of the Shopping Center Project Rights and Obligations and the Maintenance Rights and Obligations, Stanford shall remain liable to the City for all of the obligations and liabilities of "Stanford" or "Subdivider" under the Development Agreement and Maintenance Agreement. In the event of a Stanford Breach (as defined below), the City may exercise against Stanford any of the fights and remedies that are then available to the City under the Development Agreement and Maintenance Agreement (subject to such force majeure, notice and cure provisions as may be set forth therein), at law or in equity, subject to the provisions of Section 2.2 below. For purposes of this Agreement, "Stanford Breach" shall mean and include the breach of any of the obligations of Stanford or its assignees under the Development Agreement or Maintenance Agreement, including without limitation a breach arising out of Assignee’s breach of any of the Shopping Center Project Rights and Obligations or Maintenance Ri~ts and Obligations. 2.2 No Assignee Liability or Default for Stanford Obligations A. Assignee shall not be liable for any obligations or liabilities of Stanford or any of its .assignees other than Assignee (collectively, the "Stanford Parties") under the Development Agreement or the Maintenance Agreement, except for the Shopping Center Project Rights and Obligations and the Maintenance Rights and Obligations, and Assignee shall not be liable for any obligations or liabilities of the Stanford Parties that relate to or arise in connection with: (a)the Below Market Rate Housing Agreement; Co)the Completed Obligations; (c) the ARB Conditions; (d) the construction of any public roadway-related improvements, including without limitation the widening of Sand Hill Road; (e) the operation of the Marguerite Shuttle, except for Assignee’s contribution to the operation of the Marguerite Shuttle identified in Exhibit B; or (f) any Project (as defined in Section l(k) of the Development Agreement) other than the Shopping Center Project. B.Any Stanford Breach that does not arise out of Assig-nee’ s breach of any of the Shopping Center Project Rights and Obligations shall not constitute a default by Assignee under the Development Agreement and shall not result in (a) any remedies imposed against Assignee, including without limitation any remedies authorized pursuant to Sections 9(a)(2), 10(d) and (e) or 12 of the Development Agreement, or (b) termination of the Development Agreement with respect to the Shopping Center Site. Any Stanford Breach that does not arise out of Assignee’s breach of anyof the Maintenance Rights and Obligations shall not constitute a default by Assignee under the Maintenance Agreement and shall not result in any remedies imposed against Assignee, including without limitation any remedies authorized pursuant to Section 11 of the Maintenance Agreement. In the event of a Stanford Breach that does not arise out of Assignee’s breach of any of the Shopping Center Project Rights and Obligations or the Maintenance Rights and Obligations, the City shall not exercise any of the rights or remedies available to it in connection with the Stanford Breach in a manner that would adversely affect Assignee or the development, use, operation or occupancy-of the Shopping Center or the Shopping Center Project. Notwithstanding the foregoing, nothing in this Agreement shall cause 43361k36054v7 4 (y) a Stanford Breach or a breach by Assignee under the Development Ag-reement to constitute a default under the Maintenance Agreement, or (z) a Stanford Breach or breach by Assig-nee under the Maintenance Agreement to constitute a default under the Development Agreement. 2.3 Citn’ Remedies: Stanford’s Right to Cure. If Assig-nee fails to comply with any Shopping Center Project Rights and Obligations, the City may exercise against Assignee any of the rights and remedies that are then available to the City under the Development Agreement (subject to such force majeure, notice and cure provisions as may be set forth therein), at law or in equity. If Assig-aee fails to comply with any Maintenance Rights and Obligations, the City may exercise against Assig-nee any of the rights and remedies that are then available to the Cit3, under the Maintenance Agreement (subject to such force majeure, notice and cure provisions as may be set forth therein), at law or in. equity. In addition, Stanford shal! have the right, but not the obligation, upon not less than five (5) business days prior written notice to Assig-nee, to cure or remedy such failure by Assi~ee, if and to the extent such failure could materially and adversely affect Stanford’s rights or benefits under the Development Agreement or the Maintenance Agreement, but only if Assig-nee fails to correct or cure the failure within the five (5) business day period (or, if the failure is of a nature that would reasonably require more thmn five (5) business days to correct or cure, if Assignee fails to commence the correction or cure within the five (5) business day period and thereafter diligently prosecute the cure to completion). Assignee shall reimburse Stanford, within thirty (30) days after receipt of a written demand accompanied by supporting documentation, for all costs reasonably incurred by Stanford in effecfing any such cure or remedy. 2.4 Indemnities A. Assignee shall indemnify, defend and hold Stanford harmless from and against any and all claims, damages, losses, liabilities and costs, including without limitation reasonable attorneys’ fees, costs and disbursements, to the extent arising from or relating to any faiiure by Assig-nee or its employees, officers, agents, contractors, guests or invitees to comply with any or all of the Shopping Center Project Rights and Obligations, the Maintenance Rights and Obligations or the terms and provisions of this Agreement. B. Stanford shall indemnify, defend and hold Assignee harmless from and against any and all claims, damages, losses, liabilities and costs, including without limitation reasonable attorneys’ fees, costs and disbursements, to the extent arising from or relating to any failure by the Stanford Parties to comply with their respective obligations pursuant to the Development Ageement, the Maintenance Agreement, or the terms and provisions of this Agreement. C. The indemnities set forth in this Section 2.4 shall survive the expiration or earher termination of this Ageement 43361k36054v7 5 ARTICLE 3 PERIODIC REVIEW OF COh~’LIANCE 3. ! Stanford Responsibilities. Stanford shall submit the annual report and participate in the periodic review conducted pursuant to Section 10(a) of the Development Agreement and in any special review conducted pursuant to Section 10(c) of the Development Agreement. No less than fifteen (15) days prior to submission of any annual report or other documentation to the City in connection with any periodic review, or any special review that affects the Shopping Center Site or the Shopping Center Project, Stanford shall provide a draft of the portions of such documentation that apply to the Shopping Center Site or the Shopping Center Project to Assig-nee for its review and approval, which approval shall not be unreasonably withheld, conditioned or delayed. Stanford shall provide Assignee with reasonable advance notice and an opportunity to participate in any significant meerfngswith the City and any hearings related to any periodic review and any special review that affects the Shopping Center Site or the Shopping Center Project. 3.2 Assignee Rights and Responsibilities. Assignee shall reasonably cooperate with and assist Stanford in the annual report and periodic review conducted pursuant to Section 10(a) of the Development Agreement and in any special review conducted pursuant to Section 10(c) of the Development Agreement, to the extent related to the Shopping Center Site or the Shopping Center Project. Assignee shall pay to Stanford one quarter of the annual review and administration fee that is assessed by the City in connection with the periodic review process. Assignee shall have the right, but not the obligation, to participate in any si~icant meetings with the City and any hearings related to any periodic review and any special review that affects the Shopping Center Site or the Shopping Center Project. ARTICLE 4 AMENDMEN~ OR MODIFICATION OF THE DEX,~ELOPMENT AGREEMENT OR MAIN~FENANCE AGREEMENT 4. I Amendment. Stanford shall not request, process or consent to any amendment to the Development Agreement or Maintenance Agreement that would affect the Shopping Center Site, the Shopping Center Project, the Shopping Center Rights and Obligations or the Maintenance Rights and Obligations without Assignee’s prior written consent. The foregoing notwithstanding, Stanford may continue to process its request for a Second Amendment to the Development Agreement to amend Section 6(i) an, ff necessary, Assignee shall consent thereto and execute all documents necessary to accomplish said amendment, provided that such amendment does not affect the Shopping Center Site, the Shopping Center Project or the Shopping Center Rights and Obligations. 4.2 Modification. In the event that the Cit3, proposes to modify or terminate the Development Agreement pursuant to Section 10(d) of the Development Agreement, such modification or termination shall not be effective as to Assignee, provided that Assignee is not in material default with respect to the Shopping Center Project Rights and Obligations (subject to 43361k3605v7 6 such force majeure, notice and cure provisions as may be set forth in the Development Agreement). ARTICLE 5 GENERAL PRO’~qSIONS 5.1 Notices. All notices, invoices and other communications required or permitted under this Agreement shall be made in writing, and shall be delivered either personally (including by private courier), by certified mail, postage prepaid and return receipt requested, or by nationally recognized overnight courier service to the following addresses, or to such other addresses as the parties may designate.in writing from time to time: If to Stanford:Stanford .Management Company 2770 Sand Hill Road Menlo Park, CA 94025 Attention: Managing Director, Real Estate with a copy to:Stanford University Office of the General Counse! Building 170 Stanford University Stanford, CA 94305 Attention: General Counsel with a copy to Bing_ham McCutchen 1900 University Ave. East Palo Alto, CA 94303-2223 Attention: Carol Dillon K to Assignee:SPG CENTER LLC c/o Simon Property Group, L.P. National City Center 115 West Washin~on Street Indianapolis, Indiana 46204 Attention: Executive Vice President, Development with a copy to:SPG CENTER, LLC c/o Simon Property Group, L.P. National City Center 115 West Washin~on Street Indianapolis, Indiana 46204 Attention: General Counsel Notices personally delivered shall be deemed received upon deliver?,. Notices delivered by certified mail as provided above shall be deemed received on actual delivery. Notices delivered 43361k36054v7 7 by courier service as provided above shall be deemed received twenty-four (24) hours after the date of deposit. 5.2 Estoppe! Certificates. Within ten (10) days after receipt of a written request from time to time, either part), shall execute and deliver to the other, or to an auditor or prospective lender or purchaser, a written statement certifying to that party’s actual knowledge: (a) that the Development Agreement and Maintenance Agreement are unmodified and in full force and effect (or, if there have been modifications, that the Devel.opment Agreement and Maintenance Agreement are in full force and effect, and stating the date and nature of such modifications); (b) that there are no current defaults under the Development Agreement or Maintenance Agreement by the City and either Stanford or Assig-nee, as the case may be (or, if defaults are asserted, so describing with reasonable specificity) and that there are no conditions which, with the passage of time or the Nving of notice, or both, would constitute a default; (c) that this Agreement is unmodified and in full force and effect (or, if there have been modifications, that this Agreement is in full force and effect, and stating the date and nature of such modifications); and (d) such other matters as may be reasonably requested. 5.3 Attorneys’ Fees. In the event of any legal or equitable proceeding in connection with this Agreement, the prevailing party in such proceeding, or the nondismissing party where the dismissal occurs other than by reason of a settlement, shall be entitled to recover its reasonable costs and expenses, including without limitation reasonable attorneys’ fees, costs and disbursements paid or incurred in good faith at the arbitration, pre-trial, trial and appellate levels, and in enforcing an?, award or judgment granted pursuant thereto. For purposes of this Ageement, the "prevailing party," shall be the party that obtains substantially the result sought, whether by dismissal, award or judg-ment. 5.4 No Waiver. No delay or omission by either party in exercising any fight, remedy, election or option accruing upon the noncompliance or failure of performance by the other party under the provisions of this Agreement shall constitute an impairment or waiver of any such fight, remedy, election or option. No alleged waiver shall be valid or effective unless it is set forth in a writing executed by the party against whom the waiver is claimed. A waiver by either party of any of the covenants, conditions or obligations to be performed by the other party shall not be construed as a waiver of any subsequent breach of the same or any other covenants, conditions or obligations. 5.5 Amendment. This Agreement may not be amended by oral ageement. It may be amended only by a written ageement signed by both Stanford and Assi~ee and consented to in writing by the City. 5.6 Successors and Assigns. This Agreement shal! be binding on and inure to the benefit of the parties and their respective successors and assig-ns. Assignee shall have the right to sell, transfer or assign this Agreement (a) to any pan), to whom Assigmee assigns its leasehold interest in the Ground Lease (i) with Stanford’s consent pursuant to Article 11 of the Ground Lease or (ii) who is a permitted transferee under Section 11.2 of the Ground Lease; or (b) in connection with any collateral assig-nment to a leasehold mortgagee. 43361k36054v7 8 5.7 No Joint Venture. Nothing contained herein shall be consmaed as creating a joint venture, agency, or an}, other relationship between the parties hereto other than that of ¯ assignor and assignee. 5.8 Severabilitn,. If any term or provision of this Agreement or the application thereof to any person or circumstance is found by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each remaining term and provision of this Agreement shall be valid and enforceable to the full extent permitted by law; provided that, if the invalidation or unenforceability would deprive either Stanford or Assignee of material benefits derived from this Agreement or make performance under this Agreement unreasonably difficult, then Stanford and Assignee shall meet and confer and shall make good faith efforts to modify this Agreement in a manner that is acceptable to Stanford, Assignee and the City. Notwithstanding the foregoing, if any material provision of this Agreement, or the application of this Agreement to a particular situation, is held to be invalid or unenforceable, Assignee may terminate this Agreement by providing written notice of such termination to Stanford and the City. 5.9 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 5.10 No Third Part~" Beneficiaries. This Agreement shall not be deemed or construed to confer any rights, title or interest, including without limitation any third party beneficiary status or right to enforce any provision of this Agreement, upon any person or entity other than Stanford, Assignee and the City. 5.11 Time of the Essence. Time is of the essence in the performance by each party of its obligations under this Agreement. 5.12 Authority. Each person executing this Agreement represents and warrants that he or she has the authority to bind his or her respective party to the performance of its obligations hereunder and that all necessary board of directors’, shareholders’, partners’ and other approvals have been obtained. 5.13 Further Actions and Instruments. Stanford shall cooperate with and use its best efforts to assist Assignee and take all actions necessa_D, to ensure that Assignee receives the benefits of the Development Agreement and Maintenance Agreement, subject to Assignee’s performance and satisfaction of the Shopping Center Rights and Obligations and the Maintenance Rights and Obligations, respectively. Upon Assignee’s written request, Stanford shall promptly execute, with acknowledgement or affidavit if reasonably required, and file or record such required instxuments and writings and take any actions as may be reasonably necessary under the terms of the Development Agreement, the Project Approvals and the Maintenance Agreement for Assignee to realize the benefits of the Development Agreement, the Project Approvals and the Maintenance Agreement. 5.i4 Ter_.__~m. The term of this Agreement shall commence on the Effective Date and shall terminate upon the earlier to occur of (a) (i) the expiration or earlier termination of the 43361k36054v7 9 Development Agreement, with respect to the Shopping Center Ri£ahts and Obligations, and (ii) the expiration or earher termination of the Maintenance Agreement, with respect to the Maintenance Rights and Obligations, or (b) the expiration or earlier termination of the Agreement to Lease. Upon the expiration or earlier termination of this Agreement, the parties shall have no further rights or obligations hereunder, except with respect to any obligation to have been performed prior to such expiration or termination or with respect to an?, default in the performance of the provisions of this Agreement which occurred prior to such expiration or termination or with respect to any obligations which are specifically set forth as surviving this Agreement. 5.15 Counteroarts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an oriNnal, but all of which together shall constitute one and the same instrument. Signature pages may be detached from the counterparts and attached to a single copy of this Agreement to physically form one document. 5.16 Mortgagee Protection. If Assig-nee shall at any time grant or convey a security interest in the Shopping Center, Assignee’s interest under the Agreement to Lease, Ground Lease, Assignment of Leases or doctmaents related thereto, Site by mortgage, deed of trust or otherwise to any person or entity (collectively for purposes of this Section 5.16, a "Leasehold Mortgagee"), such Leasehold Mortgagee shall be entitled to receive notice of any default by Assig’nee, provided that such Leasehold Mortgagee shall have delivered a copy of a notice substantially in the form herein contained to Stanford and the City. The form of such notice shall be as follows: "’The undersigned, whose notice address is . does hereby certify that it is the holder of a lien upon the leasehold interest of SPG CENV’FER, LLC in the Shopping Center Site, and is the trustee, beneficiary or leasehold mortgagee holding the security interest in said Shopping Center Site. In the event that any notice shall be ~ven of the default of SPG CENTER, LLC, a copy thereof shall be delivered to the undersigned who shall have all rights of SPG CENTER, LLC, but not the obligation, to cure such default." Each Leasehold Mortgagee delivering such notice shall be provided with a copy of any written notice of default under this Agreement Nven to its mortgagor and shall have the same amount of time provided to its mortgagor to cure such default. Any such notice shall be ~ven in the same manner as provided in Section 5.1 hereof. Giving of any notice of default or the failure to deliver a copy to any such Leasehold Mortgagee shall in no event create any liability on the part of Stanford. 5.17 Arbitration/,ludicial Reference. The provisions of Article 17 of the Ground Lease are incorporated herein and by this reference made applicable to disputes of the nature described in said Article that arise under this Agreement. 5.18 Default. Subject to a Leasehold Mortgagees’ right to cure pursuant to Section 5.16 hereof, any failure by either part), to perform any material term or provision of this Agreement shal! constitute a defauk (a) if such defaulting part5, does not cure such failure within thirty (30) days following written notice of default from the other party, where such failure is of 43361k36054v7 I0 a nature that can be cured within such thirty (30) dab, period, or (b) if such default is not of a nature that can be cured within such thirty (30) dab, period, if the defaulting party does not within such thirty (30) day period commerce substantial efforts to cure such failure, or thereafter does not within a reasonable time prosecute to completion under dihgence the curing of such failure. Any notice of default Nven hereunder shall be Nven in the same manner as provided in Section 5.1 hereof and shall specify in detail the nature of the failures in performance that the noticing party claims and the manner in which such failure can be satisfactorily cured. IN WITNESS WHEREOF, Stanford and Assignee have executed this Agreement by proper persons thereunto duly authorized, to be effective as of the Effective Date. SIMON STANFORD SPG CENTER, LLC, a Delaware limited liability company By:SPG PALO Alto Member, LLC, a Delaware limited liability company, sole member By:Bergen Mall Partnership, a Delaware general partnership, sole member Partner By:Simon Property Group, L.P., a Delaware limited partnership, Managing By:Simon Property Group, Inc., a Delaware corporation, its general partner THE BOARD OF TRUSTEES OF THE LELAND STANFORD J75NIOR UNIVERSITY, a body having corporate powers under the laws of the State of California By: Stanford Management Company By:. - William T. Phillips Its: Managing Director, Real Estate By: David Simon Its:Chief Executive Officer 43361k36054v7 11 CITY OF PALO ALTO’S CONSENT The City hereby consents to the assignment and assumption of the Shopping Center Project Rights and Obligations and the Maintenance Rights and Obligations set forth in this Agreement, agrees to the terms and conditions set forth herein, and agrees that the Assignee and its lenders shall have the rights and benefits set forth in Sections 10 (f) (Certificate of Compliance), 18(0 (Certificate of Compliance) and 18(j) (Mortgagee Protection) of the Development Agreement. The City agrees to provide to Assignee and to any Leasehold Mortgagee that has requested notice pursuant to Section 5.16 herein, concurrently with the City’s provision to Stanford, copies of any notices of default or notices of intent to modify or terminate the Development Agreement pursuant to Section 10 of the Development Agreement that affect the Shopping Center Site, and any notices of default under the Maintenance Agreement. Nothing in this Agreement, or the City’s consent thereto, shall be deemed to amend the Development Agreement or the Maintenance Agreement or release Stanford from any of its obligations and liabilities under the Development Agreement or the Maintenance Agreement and it shall continue to remain fully bound and liable for the performance of all the obligations of Stanford thereunder notwithstanding the assignment and assumption set forth in this Agreement, or the City’s consent thereto. Nothing in the City’s consent to this Agreement, or in the City’s agreeing to the terms and conditions set forth herein, shall be deemed the City’s agreement that any of the Conditions of Approval and Mitigation Measures identified in Exhibit B as "completed" have in fact been completed. Notwithstanding anything contained in Section 5.6 of this Agreement, any sale, transfer or assignment by Assignee of any right or interest under the Development Agreement shall require the prior written consent of the City Council and shall be subject to the provisions of Section 18(f) of the Development Agreement. APPROVED AS TO FORM:CITY OF PALO ALTO, a chartered California municipal corporation Interim City Attorney APPROVED: City Manager Director of Planning and Community Environment Dated:,2003 LA1 547357v2 STATE OF CALIPORNL~ COLTNTY OF On ,2003 before me, the undersigned, a Notary Public in and for said County and State, personally appeared , persona!ly known to me (or proved to me on the basis of satisfactory evidence) to be the person(s).whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Pubhc 43361~605~v7 State of County of ACICNOWLEDGMENT The foregoing instrument was acknowledged before me this ~ day of ,2003, by .. ,of SPG CEN~FER, LLC, a Delaware limited liability company on behalf of such company.. Notary Public - State of My Commission Expires: 43361236054v7 EXHIBIT A Description of the ShopNn~ Center Site That certain real property located in the City of Palo Alto, County of Santa Clara, State of California, described as follows: Parcel One: Commencing at a concrete highway monument set on the Southwesterly line of E1 Camino Real (State Highway) opposite Engineer’s Station 18+15.24 (District IV, Santa Clara County Route 2, Section A) as said Southwesterly line was established in that certain final order of Condemnation entered in the Superior Court of the State of California, in and for the County of Santa Clara, in that certain action entitled, "The People of the State of California, acting by and through the Department of Public Works, Plaintiff, vs. The Board of Trustees of the Leland Stanford Junior University, et al., Defendant", Case No. 39384, a certified copy of which order was filed for record in the Office of the Recorder of the Count3, of Santa Clara, State of California, on July ~7, 1930 in Book 520 of Official Records, page 571; said monument being distant along the Southwesterly line of E1 Camino Real South 46045’ East 101.52 feet from the point of intersection thereof, with the center line of Quaro’ Road (60 feet in width) running thence from said concrete monument along said Southwesterly line of E1 Camino Real North 46°45’ West 233.92 feet to the true point of beginning; Thence from said true point of beginning, leaving said line of E1 Camino Real South 40o40’25’’ East 32.88 feet; thence on an arc curve to the right with a radius of 85.00 feet through a central angle of 83017’25’’, an arc distance of 123.56 feet; thence North 47023’ West 5.33 feet to a point in the Northwesterly line of Quarry Road (60 feet in width); thence along said line South 42037’ West 977.64 feet; thence continuing along said line on the arc of a curve to the left with a radius of 360.00 feet through a central angle of 23°00’, an arc distance of 144.51 feet; thence continuing along said line, South 19037’ West 477.00 feet; thence continuing along said line on the arc of a curve to the right with a radius of 2060 feet, through a central angle of 01033"07’’ an arc distance of 55.80 feet; thence on the arc of compound curve to the right with a radius of 25 feet, through a central angle of 93°26"53"an arc distance of 40.77 feet to the point in the Northeasterly line of Embarcadero Road Extension; thence along said line, North 65023’ West 868.38 feet; thence on the arc of a curve to the right with a radius of 20 feet, through a central angle of 86003’08’’, an arc distance of 30.04 feet; thence on the arc of a reverse curve to the left, with a radius of 1142.00 feet, through a central angle of 17°49’38’’, an arc distance of 355.33 feet, thence North 02°50"30’’ East 568.3 i feet; thence on the arc of a curve to the right with a radius of 1,000.00 feet through a central angle of 1° 12’27", a distance of 21.08 feet; thence North 10022’ East 25.80 feet; thence North 26021’40’’ East 49.13 feet; thence North 25°25’10’’ East 612.57 feet; thence North 35053’ East 7!.85 feet; thence North 43015’ East 43361k36054v7 Exhibit A - 1 518.96 feet to a point in the Southwesterly line of E1 Camino Real; thence along said line South 46°45’ East 588.29 feet; thence leaving said line of E1 Camino Real, South 41°36’31"East 5!.33 feet; thence on the arc of a curve to the right with a radius of 25.00 feet througah a central angle of 181°05"53’’ an arc distance of 79.02 feet to the point of a compound curve; thence on the arc of a curve to the right with a radius of 200.00 feet through a central angle of 11°15’38’’ an arc distance of 39.31 feet; thence South 60°45’ West 30.00 feet; thence South 29°15’ East 69.90 feet; thence on the arc of a curve to the right with a radius of 25.00 feet through a central angle of 72°30’ an arc distance of 31.63 feet; thence South 46°45’ East 70.00 feet; thence on the arc of a curve to the right with a radius of 25.00 feet (a radial line at the point of beginning of said curve bears South 46°45’ East) through a central angle of 72°30’ an arc distance of 31.63 feet; thence South 64°15’ East 54.34 feet; thence North 25°45’ East 30.00 feet; thence on the arc of a curve to .the right with a radius of 80.00 feet (radial line at the point of beNnning of said curve bears North 25°45’~East) through a central anne of 19°49’26’’ an arc distance of 27.68 feet to a point of compound curve; thence on the arc of a curve to the right with a radius of 25.00 feet through a central angle of 170°42’32’’ an arc distance of 74.49 feet; thence South 53°43’02’’ East 39.49 feet to a point in the Southwesterly line of E1 Camino Real; thence along said line South 46°45’ East 486.15 feet to the tree point of beginning. Together with Parcel One, easements for ingress, egress, parking and utilities, described as follows: (The bearings shown hereon are rotated by 01o02, 10" clockwise from Parcel One bearings shown above) Beginning at a concrete highway monument set on the Southwesterly line of E1 Camino Real (State Highway) opposite Engineer’s Station 18+!5.24 (District 15z, Santa Clara County Route 2, Section A) as said Southwesterly line was established in that certain final order of Condemnation entered in the Superior Court of the State of California, in and for the County of Santa Clara, in that certain action entitled, "The People of the State of California, acting by and through the Department of Public Works, Plaintiff, vs. The Board of Trustees of the Leiand Stanford Junior University, et al., Defendant", Case No. 39384, a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of Cahfomia, on July 7, 1930 in Book 520 of Official Records, page 571; said monument being distant along the Southwesterly line of E1 Camino Real South 45042, 50" East 101.52 feet from the point of intersection thereof, with the center line of Quarry Road, 60 feet in width, described as Parce! A in that certain Easement Deed, from The Board of Trustees of the Leland Stanford Junior University to City of Palo alto, recorded April 21, 1955 in Book 3148 of Official Records of Santa Clara Count?, at Page 395; Thence from said concrete monument along said Southwesterly hne of E1 Camino 43361k36054v7 Exhibit A - 2 Real North 45°42’50’’ West 233:92 feet to a point hereafter referred to as Point Thence leaving said line of E1 Camino Real, along the general northwesterly line of said Quarry Road (3!48 O.R. 395), the following eight (8) courses: 1) South 39°38’ 15" East, 32.88 feet to the beNrming of a curve to the fight, having a radius of 85.00 feet; 2) Southerly and southwesterly, along said curve, through a centra! angle of 83017’25,, and an arc len~la of !23.56 feet; 3) North 46020’50,’ West, 5.33 feet; 4) South 43039’ 10" West, 977.64 feet to the beginning of a curve to the left, having a radius of 360.00 feet; 5) Southwesterly, along said curve, through a central angle of 23000’00,, and an arc len~ of 144.51 feet; 6) South 20039, 10" West, 477.00 feet to the beginning of a curve to the right, having a radius of 2060.00 feet; 7) Southwesterly, along said curve, through a central angle of 01°33’07" and an arc len=~.h of 55.80 feet to the beginning of a compound curve, concave to the northwest, having a radius of 25.00 feet; 8) Westerly and northwesterly, along said curve, through a central angle of 93026’53’, and an arc length of 40.77 feet to a point on the northeasterly line of Arboretum Road, also formerly known as Embarcadero Road Extension (Parcel A, 3148 O.R. 395); Thence along said northeasterly line of Arboretum Road, North 64°20’50’’ West, 9.58 feet to a point hereafter referred to as Point "B"; Thence continuing along said northeasterly line of Arboretum Road, North 64020’ 50" West, 446.49 feet to a point hereafter referred to as Point "C"; Thence continuing along said northeasterly hne of Arboretum Road, North 64°20’50" West, 328.31 feet to a point hereafter referred to as Point ’~D"; Thence continuing along said northeasterly hne of Arboretum Road, North 64°20’50,, West, 84.00 feet to the be~m.nning of a curve to the fight, having a radius of 20.00 feet; Thence leaving said northeasterly line of Arboretum Road (Parcel A, 3148 O.R. 395), the following six (6) courses: 1) Northwesterly and northerly, along said curve, througla a central angle of 86°03’08,, and an arc length of 30.04 feet to the beginning of a reverse curve, concave to the northwest, having a radius of 1142.00 feet; 2) Northeasterly, along said curve, through a central angle of 17°49’38’, and an arc length of 355.33 feet; 43361k36054v7 Exhibit A - 3 3) North 03°52’40’’ East, 568.31 feet to the beginning of a curve to the right, having a radius of 1000.00 feet; 4) Northeasterly, along said curve, through a central angle of 01°12’27’’ and an arc len~m~h of 21.07 feet; 5) North 11°24’10’, East, 25.80 feet; 6) North 27°23’50’’ East, 22.80 feet to a point hereinafter referred to as Point "E"; Thence continuing along said hne, the following four (4) courses: 1) North 27023’50,, East, 2) North 26027’20,, East, 3) North 36°55’ 10" East, 4) North 44°17’ 10’’ East, Real; 26.33 feet; 612.57 feet; 71.85 feet; 518.95 feet to said southwesterly hne of E1 Camino Thence along said southwesterly line of E1 Camino Real, South 45°42’50’’ East, 588.30 feet to a point hereinafter referred to as Point "F"; Said easements for ingress, egress, parking and utilities, described as follows: (The bearings shown hereon are rotated by 01 °02’ 10" clockwise from Parcel One bearings shown above) Parcel One (A): Beginning at a point hereinabove referred to as Point "A" for Parcel One, said point also being the True Point of Beginning of this description; Thence along said southwesterly line of E1 Camino Real, South 45°42’50’’ East, 91.87 feet; Thence leaving said southwesterly line, South 43°39’48’’ West, 37.80 feet to a point on the northwesterly line of said Quarry Road (Parcel A, 3148 O.R. 395), said point being at the beginning of a non-tangent curve, concave to the west, having a radius 85.00 feet, form said point a radial line bears North 81°55’09" West; Thence along the general northwesterly line of said Quarry Road (Parcel A, 3148 O.R. 395), being also the general southeasterly line of said Parcel One hereinabove described, the following two (2) courses: 1) Northwesterly, along said curve, throu~ a central anne of 47°43’06" and an arc ieng~.h of 70.79 feet; 2) North 39°38, 15" West, 32.88 feet to the True Point of BeNnning of this description. 43361236054v7 Exhibit A - 4 Parcel One (t3): BeNrming at a point hereinabove referred to as Point "B" for Parcel One, said point being on a non-tangent curve, concave to the north, having a radius of 28.50 feet, from said point a radial line bears North 21035’28,, West, said point also being the Tree Point of BeNnning of this description; Thence leaving said point and along the general northeasterly line of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304200, Official Records of Santa Clara County, the following five (5) courses: 1) Westerly and northwesterly, along said curve, through a central angle of 49058’09,, and an arc leng’th of 24.86 feet; 2) North 61°37’19,, West, 80.66 feet; 3) North 63018’04" West, 166.34 feet; 4) North 66024’30,, West, 121.15 feet to the beginning of a curve to the right, having a radius of 15.00 feet; 5) Northwesterly, along said curve, through a central angle of 58°04’21,, and an arc length of 15.20 feet to the northeasterly line of said Arboretum Road (Parcel A, 3148 O.R. 395), being also the southwesterly hne of said Parcel One hereinabove described; Thence along said southwesterly hne. South 64020’50" East, 40m2_ feet to the True Point of BeNnning of this description. Parcel One (C): Beginning at a point hereinabove referred to as Point "C" for Parcel One, said point also being the Tree Point of Beginning of this description; Thence leaving said point and along the general northeasterly line of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304200, Official Records of Santa Clara County, the following six (6) courses: 1) North 2) South 3) North 4) North 66020, 10" West, 12.01 feet; 41 °20’ 16" West, 5.74 feet; 64036’08,’ West, 104.33 feet; 57002’58,, West, 19.67 feet; 5) North 63057, 12" West, 165.94 feet; 6) North 26002’48" East, 2.76 feet to the northeasterly line of said Arboretum Road (Parcel A, 3148 O.R. 395), being also the southwesterly hne of said Parcel 43361k36o54~,7 Exhibit A - 5 One hereinabove described; Thence along said southwesterly line, South 64°20’50,, East, 303.31feet to the True Point of Beginning of this description. Parcel One (I3): Be=~aning at a point hereinabove referred to as Point "D" for Parcel One, said point also being the True Point of Beginning of this description; Thence leaving said point and along the general northeasterly line of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304200, Official Records of Santa Clara County, the following four (4) courses: 1) South 26°02’48’’ West, 2.59 feet; 2) North 63°57, 12" West, 4.04 feet; 3) North 71°54’04,, West, 25.46 feet; 4) North 65°20’40,, West, 44.70 feet to a point, said point being the most easterly comer of Sand Hill Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304199, Official Records of Santa Clara Count-3,; -Thence leaving said comer and along the general northeasterly hne of said Sand Hill Road (Doc. No. 16304199), the following two (2) courses: 1) North 65°20’40’’ West, 52.73 feet to the beNnning of a curve to the right, having a radius of 25.00 feet; 2) Northwesterly, along said curve, throu~h a central angle of 47028’56’’ and an arc length of 20.72 to the most southerly comer of said Sand Hill Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded October 11, 2000, under Document No. 15418966, Official Records of Santa Clara County; Thence leaving said comer and along the general southeasterly line of said Sand Hi!l Road ~oc. No. 15418966), said comer being at the beNnning of a non tangent curve, concave to the northeast, having a radius of 25.00 feet, from which a radial line bears North 72"08’ 16" East, the following fourteen (14) courses: 1) Northwesterly, along said curve, through a central angle of 36°03’00" and an arc length of 15.73 feet to the beNnning of a reverse curve, concave to the west, having a radius of 978.00 feet; 43361k36054v7 Exhibit A - 6 2) Northerly, along said curve, through a central angle of 07°54’02" and an arc len~h of !34.86 feet; .3) North 10017’ 14~’ East, 328.46 feet; 4) South 79042’46,, East, 12.50 feet; 5) North 10°17, 14" East, 41.23 feet; 6) South 79°42’46,, East, 11.55 feet; 7) North 10°17, 14" East, 85.26 feet to the beNnning of a non-tangent curve, concave to the northeast, having a radius of 25.00 feet, from which a radial line bears North 12028, 17" East; 8) Northwesterly and northerly, along said curve, through a central angle of 87048’57,, and an arc lengxh of 38.32 feet; 9) North 10°17, 14" East, 166.93 feet; 10) South 79042’46,, East, 8.50 feet; !1) North 10°17’14,, East, 17.30 feet; 12) North 79042’46’, West, 8.50 feet; 13) North 10°17’14,, East, 75.89 feet; 14) North 13°43’15,, East, 20.90 feet to the westerly line of said Parcel One hereinabove described; Thence along the general westerly line of said Parcel One, the following four (4) courses: I) South 03o52’40" West, 556,15 feet to the beNnning of a curve to the right, having a radius of 1142.00 feet; 2) Southwesterly, along said curve, througla a central angle of 17°49’38,, and an arc length of 355.33 feet to the beNnning of a reverse curve, concave to the northeast, having a radius of 20.00 feet; 3) Southeasterly, along said curve, throu~ a central angle of 86003’08,, and an arc length of 30.04 feet; 4) South 64020’50,, East, 84.00 feet to the True Point of Beginhing of this description. Parcel One (E): Beginning at a point hereinabove referred to as Point ’¢E" for Parcel One, said point also being the Tree Point of Beginning of this description; Thence leaving said point and along the general southeasterly line of Sand Hill Road (Doc. No. 15418966), the following thirteen (13) courses: 1)North 79°42’46" West, 1.97 feet; 2)North 10017, 14" East, 54.95 feet; 3)South 79°42’46" East, 1.50 feet; 4)North 10°17’14" East, 46.92 feet; 5)South 79°42’46" East, 13.00 feet to the beNnning of a curve to the left, having 43361k36054v7 .Exhibit A - 7 a radius of 2.50 feet; 6) Northeasterly, along said curve, through a central angle of 90o00’00" and an arc len=~h of 3.93 feet; 7) North 10017, 14" East, 20.96 feet to the beNnning of a non-tangent curve, concave to the south, having a radius of 44.50 feet, from which a radial line bears South 10005’02,, East; 8) Easterly, along said curve, through a central angle of 13009’03’, and an arc len=~la of 10.21 feet; 9) North 15°12’29,, East, 45.33 feet to the beg-inning of a non-tangent curve, concave to the northeast, having a radius of 44.50 feet, form which a radial line bears North 30029’ 15" East; 10) Northwesterly, along said curve, through a central angle of 29°03’27" and an ¯ arc leng~th of 22.57 feet; 11) North 59032’42,, East, 9.50 feet to the begirming of a non-tangent curve, concave to the east, having a radius of 35.00 feet, from which a radial line bears North 59032’42,, East; 12) Northeasterly, along said curve, through a central angle of 50046’39,, and an arc leng~da of 31.02 feet to the beNnning of a compound curve, concave to the southeast, having a radius of 960.00 feet; 13) Northeasterly, along said curve, through a central angle of 26037’38,, and an arc length of 446.14 feet to the northwesterly line of said Parcel One hereinabove described; Thence along the general northwesterly line of said Parcel One, the following three (3) courses: 1) South 36055, 10" West, 14.78 feet; 2) South 26027’20" West, 612.57 feet; 3) South 27°23’50" West, 26.33 feet to the True Point of BeNnning of this description. Parce! One (F): BeNnning at a point hereinabove referred to as Point "F" for Parcel One, said point also being the Tree Point of Beginning of this description; Thence leaving said point, the following thirteen (13) courses: 1) South 40°34’21" East, 51.33 feet to the beginning of a curve to the right, having a radius of 25.00 feet; 2) Southwesterly, westerly and northwesterly, along said curve, through a central anne of 181005’53,, and an arc length of 79.02 feet to the beginning of a compound curve, concave to the northeast, having a radius of 200.00 feet; 3) Northwesterly, along said curve, through a central angle of 11°15’38,, and an arc lengnh of 39.31 feet; 4) South 61047, 10" West, 30.00 feet; 43361k36054v7 Exhibit A - 8 5) South 28°12’50’’ East, 69.90 feet to the beginning of a curve to the right, having a radius of 25.00 feet; 6) Southwesterly, along said curve, through a central angle of 72°30’00" and an arc length of 31.63 feet; 7) South 45°42’50’’ East, 70.00 feet to the beginning of a non-tangent curve, concave to the south, having a radius of 25.00 feet, from which a radial line bears South 45°42’ 50" East; 8) Easterly and southeasterly, along said curve, through a central angle of 72°30’00,, and an arc length of 31.63 feet; 9) South 63°12’50,, East, 54.34 feet; ¯ 10) North 26°47’10,, East, 30.00 feet to the beginning of a non-tangent curve, concave to the northeast, having a radius of 80.00 feet, from which a radial line bears North 26047, 10" East; 11) Northwesterly, along said curve, through a central angle of 19°49’26,, and an arc length of 27.68 feet to the beginning of a compound curve, concave to the southeast, having a radius of 25.00 feet; 12) Northeasterly, easterly and southeasterly, along said curve, through a central angle of 170°42’32’’ and an arc length of 74.49 feet; 13) South 52°40’52,, East, 39.57 feet to the southwesterly line of said E1 Camino Real; Thence along said southwesterly line, North 15°42’50,, West, 223.14 feet to the True Point of Beginning of this description. Parcel Two: Beginning at a point on the Northwesterly line of Quarry Road at the most Easterly comer of that certain 4.000 acre parcel of land described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated as of March 1, 1961 and recorded May 23, 1961 in the Office of the Recorder of the County of Santa Clara, State of California, in Book 5175 of Official Records at page 624; thence from said point of beginning leaving said line of Quarry Road, on and along the Northeasterly line of said 4.000 acre parcel, North 73°08’56’’ West 372.06 feet; thence leaving said line North 16051’04" East 655.78 feet to a point in the Southwesterly line of Arboretum Road (120 feet in width); thence along said line South 65023’00’’ East 403.67 feet; thence on the arc of a curve to the right with a radius of 25.00 feet, through a central angle of 87°09’15’’, an arc distance of 38.03 feet, to a point in the said Northwesterly line of said Quaro, Road; thence along said line South 21°46’15,, West 576.44 feet to the point of be~nning. Together with Parcel Two, easements for ingess, egess, parking and utihties, described as follows: 43361B6054v7 Exhibit A - 9 (The bearings shown hereon are rotated by 01o02, 10" clockw~,ise from Parcel Two bearings shown above) BeNnning at a point on the northwesterly line of Quarry Road, as described in the Easement Deed, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded February 13, !957 in Book 3729 of Official Records of Santa Clara County at Page 7, at the most easterly comer of that certain 4.000 acre parcel of land, described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated March 1, 1961 and recorded May 23, .1961 in Book 5175 of Official Records of Santa Clara County at Page 624; Thence leaving said northwesterly line of Quarry Road, along the northeasterly line of said 4.000 acre parcel (5175 O.R. 624), North 72°06’46’’ West, 372.06 feet to the most westerly comer of Parcel B, as described in that certain Lease Ageement between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Saks & Company, Lessee, dated August 1, 1962 and recorded August 16, 1962 in Book 5687 of Official Records of Santa Clara County at Page 268; Thence leaving said comer and said northeasterly hne, along the northwesterly line of said Parcel B (5687 O.R. 268), North 17°53’14’i East, 655.78 feet to a point hereafter referred to as Point "A", said point also being the most northerly comer of said Parcel B (5687 O.R. 268); Thence along the northeasterly line of said Parcel B, South 64°20’50" East, 243.77 feet to a point hereafter referred to as Point "B"; Said easements for ingess, egess, parking and utilities, described as follows: (The bearings shown hereon are rotated by 01°02’ 10" clockwise from Parcel Two bearings shown above) Parcel Two (A): BeNnning at a point hereinabove referred to as Point "A" for Parcel Two, said point also being the Tree Point of BeNnning of this description; Thence along the prolongation of said northwesterly line of said Parcel B (5687 O.R. 268), North 17°53’ 14" East, 7.93 feet to the southwesterly line of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304200, Official Records of Santa Clara County; 43361236054v7 Exhibit A - 10 Thence along the general southwesterly line of said Arboretum Road (Doc. No. 16304200), the following three (3) courses: 1) South 64°18’41,, East, 192.98 feet to the beginning of a curve to the right, having a radius of 5.00 feet; 2) Southeasterly, along said curve, through a central angle of 67°41’59" and an arc length of 5.91 feet; 3) South 03°23’18’, West, 5.01 feet to the northeasterly line of said Parcel B (5687 O.R. 268); Thence along said northeasterly line, North 64o20’50" West, 198.43 feet to the True Point of Beginning of this description. Parcel Two Beginning at a point hereinabove referred to as Point "B" for Parcel Two, said point being at the beginning of a non-tangent curve, concave to the south, having a radius of 15.00 feet, from said point a radial line bears South 35028’56,, East, said point also being the True Point of Beginning of this description; Thence along the general southwesterly hne of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the Cit3’ of Palo Alto, recorded June 7, 2002, under Document No. 16304200, Official Records of Santa Clara County, the following three (3) courses: 1) Northeasterly, along said curve, .through a central angle of 61°06’42" and an arc lengch of 16.00 feet; 2) South 64022, 14" East, 124.52 feet to the beginning of a curve to the right, having a radius of 31.00 feet; 3) Southeasterly, along said curve, through a central angle of 41035’58,, and an arc length of 22.51 feet to the said northeasterly line of said Parcel B (5687 O.R. 268); Thence along said northeasterly hne of said Parcel B, North 64020’50" West, 158.24 feet to the True Point of Beginning of this description. Parcel Two (B) contains an area of 1,152 square feet or 0.026 acres, more or less. And reserving therefrom Parcel Two, an easement for ingress, egress, parking and utilities, described as follows: (The bearings shown hereon are rotated by 01°02’ 10" clockwise from Parcel Two bearings shown above) 43361k36054v7 Exhibit A - 1 ! -.Being a portion of Parcel Two hereinabove described, more particularly described as follows: Beg-inning at a point on the northwesterly line of Quarry Road, as described in the Easement Deed, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded February 13, 1957 in Book 3729 of Official Records of Santa Clara County at Page 7, at the most easteriy corner of that certain 4.000 acre parcel of land, described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated March 1, 1961 and recorded May 23, 1961 in Book 5175 of Official Records of Santa Clara County at Page 624; Thence leaving said northwesterly line of Quarry Road, along the northeasterly line of said 4.000 acre parcel (5!75 O.R. 624), North 72006’46,, West, 372.06 feet to the most westerly comer of Parcel B, as described in that certain Lease Agreement between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Saks & Company, Lessee, dated August 1, 1962 and recorded August 16, 1962 in Book 5687 of Official Records of Santa Clara County at Page 268; Thence leaving said comer and said northeasterly line, along the northwesterly line ofsaid Parcel B (5687 O.R. 268), North 17053, 14" East, 67.52 feet; Thence leaving said northwesterly hne of said Parcel B, the following twelve (12) COO!SeS: 1) South 72°06’46’’ East, 42.89 feet; 2) South 17°5Y14’’ West, 0.52 feet to the beNnning of a curve to the left, having a radius of 7.00 feet; 3) Southeasterly, along said curve, through a centra! angle of 90°00’00" and an arc len=~h of 11.00 feet; 4) South 72006’46,, East, 122.24 feet; 5) North 63°!4’01,, East, 16.32 feet; 6) South 72006’46,, East, 69.57 feet; 7) South 17053, 14" West, 6.47 feet to the beginning of a curve to the left, having a radius of 5.00 feet; 8) Southeasterly, along said curve, through a central angle of 90000’00,, and an arc leng~dq of 7.85 feet; 9) South 72006’46,, East, 84.85 feet to the be~rming of a curve to the left, having a radius of 20.00 feet; 10) Northeasterly, along said curve, through a central angle of 36035, 18" and an arc len=~.h of !2.77 feet; 1!) North 71017’56,, East, 21.43 feet to the beginning of a curve to the left, having a radius of 22.00 feet; !2) Northeasterly, along said curve, through a central angle of 30034’54,, and an 43361136054v7 Exhibit A - 12 arc length of 11.74 feet to said northwesterly line of Quarry Road (3729 O.R. 7); Thence along said northwesterly line of Qua-ry Road, South 22°48’25" West, 86.16 feet to the point of BeDnning. Parcel Three: BeNnning at a point on the Northwesterly line of Quarry Road (60.00 feet in width) at the most Easterly coruer of that certain 4.000 acre parcel of land, described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated as of March 1; 196! and recorded May 23, 1961 in the Office of the Recorder of the County of Santa Clara, State of California, in Book 5175 of Official Records at page 624; thence leaving said line of said Quarry Road and along the Northeasterly line of said 4.000 acre parcel North 73°08’56’’ West 372.06 feet to the true point of beNnning of the parcel to be described; Thence from said true point of beNnning North 73008’56’’ West along the Northeasterly line of said 4.000 acre parcel and along its Northwesterly prolongation 830.64 feet to a point on a line parallel with and 71.00 feet Southeasterly of the Southeasterly line of Willow Road (71.00 feet in width), as described in that certain deed to the City of Palo Alto recorded in the office of the Recorder of the Count?, of Santa Clara, California, in Book 3148 of Official Records of Santa Clara County at page 395; thence along said parallel line North 47017’25’’ East 413.76 feet to an angle point in the right-of-way line of Willow Road as described in said deed to the City of Palo Alto, said angle point being at the beNnning of a curve; thence along the Southeasterly line of the right-of-way of Willow Road (142.00 feet in width), along the arc of a tangent curve to the left, having a radius of 1142 feet, through a central angle of 18043’33’’, a distance of 373.24 feet to a point of reverse curvature; thence along the arc of a reverse curve to the ri~t, having a radius of 20.00 feet, through a centra! angle of 86°03’08", a distance of 30.04 feet to a point on the Southwesterly line of Arboretum Road (120.00 feet in width); thence along said Southwesterly line South 65023’00’’ East 469.41 feet; thence leaving said Southwesterly line South 16°51"04’’ West 655.78 feet to the true point of beNnning. Together with Parcel Three, easements for ingress, egress, parking and utilities, described as follows: (~Fne bearings shown hereon are rotated by 01 °02’ 10" clockwise from Parcel Three bearings shown above) Beginning at a point on the northwesterly hne of Quarry Road, as described in the Easement Deed, from The Board of Trustees of the Leland Stanford Junior University to the Cit?, of Palo Alto, recorded Februar3, 13, 1957 in Book 3729 of Exhibit A - 13 Official Records of Santa Clara Count?, at Page 7, at the most easterly comer of that certain 4.000 acre parcel of land, described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated March !, 1961 and recorded May 23, 1961 in Book 5175 of Official Records of Santa Clara County at Page 624; Thence leaving said northwesterly line of Quarry Road, along the northeasterly line of said 4.000 acre parcel (5175 O.R. 624), North 72006’46,, West, 372.06 feet to the most southerly comer of that certain parcel of land, described in that certain Memorandum of Lease between The Board of Trustees of the Leland Stanford Junior Universit?,, Lessor, and Federated Department Stores, Inc., Lessee, recorded March 29, 1971 in Book 9271 of Official Records of Santa Clara County at Page 255; Thence leaving said southerly comer and along the southwesterly line of said Federated Department Stores parcel (9271 O.R. 255), North 72o06’46,, West, 830.63 feet to the most westerly comer of said lands (9271 O.R. 255), said comer hereafter referred to as Point "A"; Thence along the northwesterly line of said lands (9271 O.R. 255), the following three (3) courses: 1) North 48o19’35" East, 413.76 feet to the begi~ng of acurve to the left, having a radius of 1142.00 feet; 2) Northeasterly, along said curve, through a central angle of 18043’33,, and an arc length of 373.24 feet to the beNnning of a reverse curve, concave to the southeast, having a radius of 20.00 feet; 3) Northeasterly,. along said curve, throu~ a central angle of 86003’08,, and an arc length of 30.04 feet to the northeasterly line of said lands (9271 O.R. 255); Thence along said northeasterly line, South 64o20’50" East, 186.38 feet to a point hereafter referred to as Point "B"; Said easements for ingress, egress, parking and utilities, described as follows: (The bearings shown hereon are rotated by 01 °02’ 10" cloclc~,ise from Parcel Three bearings shown above) Parcel Three (A): BeNnning at a point hereinabove referred to as Point "A" for Parcel Three, said point also being the Tree Point of BeNnning of this description; Thence along the said prolongation line of said northeasterly line of that certain 4.000 acre parcel of land (5175 O.R. 624), North 72006’46,, West 28.50 feet to 43361k36054v7 Exhibit A - 14 the southeasterly line of Sand Hill Road as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304199, Official Records of Santa Clara County; Thence along the general southeasterly line of Sand Hill Road, the following four (4) courses: 1) North 48°19’38" East, 390.08 feet to the be~rming of a curve to the left, having a radius of 1139.00 feet; 2) Northeasterly, along said curve, through a central anne of 20°02’40,, and an arc length of 398.47 feet to the beNnning of a reverse curve, concave to the southeast, having a radius of 25.00 feet; 3) Northeasterly and easterly, along said curve, through a central angle of 87"30’ 19" and an arc leng~ of 38.18 feet to the southwesterly line of Arboretum Road (Doc. No. 16304199); 4) South 64°12’43,, East, 31.00 feet to the most westerly comer of Arboretum Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the Cit-y of Palo Alto, recorded June 7, 2002, under Document No. 16304200; Thence along the general southwesterly line of Arboretum Road (Doc. No. 16304200), the following two (2) courses: 1) South 64012’43,, East, 122.98 feet to the beginning of a curve to the right, having a radius of 10.00 feet; 2) Southeasterly, along said curve, through a central angle of 55039’07" and an arc length of 9.71 fegt to said northeasterly line of said lands (9271 O.R. 255); Thence along said northeasterly hne, the following two (2) courses: 1) North 64°20’50,, West, 131.23 feet to the beNnning of a curve to the left, having a radius of 20.00 feet; 2) Southwesterly, along said curve, through a central angle of 86°03’08" and an arc length of 30.04 feet to a point on the northwesterly hne of said land (9271 O.R. 255), said point.also being at the be=~ming of a reverse curve, concave to the northwest, having a radius of 1142.00 feet; Thence along said northwesterly hne, the following two (2) courses: 1) Southwesterly, along said curve, through a central angle of 18°43’33,’ and an arc len~h of 373.24 feet; 2) South 48019’35,’ West, 413.76 feet to the True Point of Beginning of this description. Parcel Three (B): 43361k36054v7 Exhibit A- 15 Begirming at a point hereinabove referred to as Point "B" for Parcel Three, said point being at the beNrming of a nonrtangent curve, concave to the south, having a radius of 26.50 feet, from said point a radial line bears South 26°32’38,, East; said point also being the Tree Point of BeNrming of this description; Thence along the general southwesterly hne of Arboretum Road (Doc. No. 16304200), the following three (3) courses: 1) Northeasterly, along said curve, througah a central anne of 27°33’24" and an arc length of 12.75 feet; 2) South 66051’52’’ East, 166.25 feet; 3) South 23°04’22,’ West, 15.16 feet to said northeasterly line of said lands (9271 O.R. 255); Thence along said northeasterly hne, North 64020’50,, West, 176.66 feet to the Tree Point of Begirming of this description. Reserving therefrom Parcel Three, an easement for in~ess, egess and utilities, described as follows: (The bearings shown hereon are rotated by 01 °02’ 10" clockwise from Parcel Three bearings shown above) Being a portion of Parcel Three hereinabove described and a portion of the lands of The Board of Trustees of the Leland Stanford Junior University, more particularly described as follows: Be~nning at a point on the northwesterlyline of Quarry Road, as described in the Easement Deed, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded February 13, 1957 in Book 3729 of Official Records of Santa Clara County at Page 7, at the most easterly comer of that certain 4.000 acre parcel of land described in that certain Memorandum of Lease by and between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Old Barn Associates, Lessee, dated March 1,196! and recorded May 23, !961 in Book 5175 of Official Records of Santa Clara County at Page 624; Thence leaving said northwesterly line of Quan3, Road, along the northeasterly line of said 4.000 acre parcel (5175 O.R. 624), North 72006’46’, West, 372.06 feet to the most westerly comer of Parcel B, as described in that certain Lease Ageement between The Board of Trustees of the Leland Stanford Junior University, Lessor, and Saks & Company, Lessee, dated Augmst 1, 1962 and recorded August 16, 1962 in Book 5687 of Official Records of Santa Clara County at Page 268, said comer being also the True Point of BeNnning of this description; Exhibit A - 16 Thence leaving said corner and continuing along said northeasterly line of said 4.000 acre parcel and along its northwesterly prolongation, North 72006’46,, West, 859.14 feet to the southeasterly line of Sand Hill Road, as described in that certain Easement for street and roadway purposes, from The Board of Trustees of the Leland Stanford Junior University to the City of Palo Alto, recorded June 7, 2002, under Document No. 16304199, Official Records of Santa Clara County; Thence along said southeasterly line of Sand Hill Road, North 48019’35" East, 155.66 feet to the beginning of a non-tangent curve, concave to the east, having a radius of 35.00 feet, from which a radial line bears South 72040’32,, East; Thence leaving said southeasterly hne of Sand Hill Road, the following twenty- four (24) courses: I) Southwesterly and southerly, along said curve, througah a central angle of 56005, 10" and an arc length of 34.26 feet; 2) South 38°45’42,, East, 16.51 feet to the beginning of a curve to the left, having a radius of 217.00 feet; 3) Southeasterly, along said curve, through a central angle of 33 ~1 04 and an arc len~h of 126.31 feet; 4) South 72006’46,, East, 230.39 feet to the begirming of a curve to the right, having a radius of 15.00 feet; 5) Southeasterly, along said curve, through a central angle of 36°52, !2" and an arc length of 9.65 feet to the beginning of a reverse curve, concave to the northeast, having a radius of 10.00 feet; 6) Southeasterly, along said curve, through a central angle of 36052, 12" and an arc len~h of 6.44 feet; 7) South 72006’46,, East, 44.80 feet to the beginning of a curve to the left, having a radius of 15.00 feet; 8) Easterly, along said curve, through a central angle of 22032’44,, and an arc lengh of 5.90 feet; 9) North 09°16’53’"East, 4.57 feet; 10) North 59028’35,, East, 5.76 feet; 11) South 72006’46,, East, 48.14 feet; 12) South 17°53’14,, West, 0.97 feet to the beginning of a curve to the left, having a radius of 13.00 feet; 13) Southerly and southeasterly, along said curve, through a central angle of 90°00’00" and an length of 20.42 feet; !4) South 72006’46,, East, 3.11 feet; 15) South 17°53’14,, West, 2.00 feet; 16) South 72006’46,, East, 72.33 feet to the beginning of a curve to the left, having a radius of 15.00 feet; 17) Easterly, along said curve, through a central anne of 18°29’16,, and an arc len~,m.h of 4.84 feet; 18) North 89023’58,, East, 4.90 feet to the beNnning of a curve to the right, 43361L36054v7 Exhibit A - 17 having a radius of 10.00 feet; 19) Easterly, along said curve, through a central angle of 14°39’46’’ and an arc Iength of 2.56 feet; 20) South 75°56’ 16" East, 104.55 feet to the be=m_nning of a non-tangent curve, concave to the northeast, having a radius of 15.00 feet, from which a radial line bears North 71°49, 15" East; 21) Southeasterly, along said curve, through a central anne of 57°45’31" and an arc length of 15.12 feet; 22) South 75°56’ 16" East, 25.98 feet to the be~Nnning of a cur~e to the left, having a radius of 22.50 feet; 23) Northeasterly, along said curve, throu~ a central angle of 46027’00,, and an arc length of 18.24 feet; 24) South 75°56’ 16" East, 24.75 feet to said northwesterly line of said Parcel B (5687 O.R. 268); Thence along said northwesterly line of said Parcel B, South 17°53’14,, West, 64.61 feet to the True Point of BeNnning of this description. Parcel/Four: Be~,~ming at a concrete highway monument set on the Southwesterly line of E1 Camino Real (State Highway) opposite EnNneer’s Station 18 + 15.24 (District IV, Santa Clara County, Route 2, Section A), as said Southwesterly line was established in that certain Final Order of Condemnation entered in the Superior Court of the State of California, in and for the County of Santa Clara in that certain Action entitled (The People of the State of California acting by and through the Department of Public WorM, Plaintiff, vs. The Board of Trustees of the Leiand Stanford Junior University; et al, Defendant, Case No. 39384), a Certified Copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on July 7, 1930 in Book 520 of Official Records, page 571, said monument being distant along the said Southwesterly line of E1 Camino Real, South 46° 45’ East 101:52 feet from the point of intersection thereof with the center line of Quarry Road, 60.00 feet in width, running thence from said concrete highway monument North 46° 45’ West and along the said Southwesterly line of E1 Camino Real, for a distance of 101.52 feet to the point of intersection thereof with the center line of Quarry Road running thence along the center line of Quarry Road, South 42° 37’ West 1064.44 feet; thence continuing along the center line of said Road on the arc of a curve to the left with a radius of 330.00 feet, through a central angle of 23° 00’, an arc distance of 132.47 feet; thence continuing along the center line of said road, South 19° 37’ West 477.00 feet; thence leaving said center line South 70° 23’ East 30.00 feet to the point on the Southeasterly property line of Quarry Road (60 feet wide) said point also being the true point of beginning of the herein described Parcel of land. 43361k36054v7 Exhibit A - 18 Thence from said true point of begirming and along the said Southeasterly line of Quarry Road, Southwesterly, along the arc of a tangent curve to the right from a tangent which bears South 19° 37’ West, with a radius of 2120.00 feet, through a central angle of 1° 43’ 45" for an arc length of 63.98 feet to a point of reverse curvature, a radial line through said point bears South 68° 39’ 15" East; thence along the arc of a tangent curve to the left with a radius of 25.00 feet through a central angle of 86° 43’ 45" for an arc lengh of 37.84 feet to a point on the Northeasterly line of Arboretum Road (120 feet wide); thence along the last said Northeasterly line South 65 ° 23’ 00" East 114.00 feet; thence leaving the last said line North 24° 37’ 00" East 147.69 feet; thence North 70° 23’ West 148.28 feet to a point on the aforementioned Southeasterly property line of Quarry Road; thence along the last said Southeasterly line South 19° 37’ West 47.56 feet to the true point of beginning. APN: 142-01-002, 004, 005; 142-03-001,027, 028; 142-04-007 ARB: 142-1-2,4,5,; 142-3-1,27,28; 142-4-7 Exhibit A - 19 E~IT B Stanford Sand Hill Road Corridor Proiects Mitigation Monitorin~ Prom’am. Stanford Shopping Center 43361~36054v7 Exhibit B - 1 I z; v b~ E ~£.E 0~ ,< .< III1 i ,< ,< ¯¯¯¯¯ <Z I < Z 2-," Z EXHIBIT C Maintenance Ri_~hts and Obli_~ations Landscanin_ Arboretum Road from Sand Hill Road to Quarry Road a. Shopping Center contract with Jensen (2/21/02) [Assig-nee] Quarry Road from E1 Camino Real to Welch Road a. North side and median - Shopping Center contract with Jensen (3/21/02) [Assignee] b. South side - Stanford responsibilit3, [Stanford] Sand Hill Road - South Side a. E! Camino to Vineyard - Shopping Center contract with Jensen [Assignee] b. Vineyard to Menlo Park bridge - Stanford responsibility [Stanford] Sand Hill Road - Median a. E1 Camino to Arboretum - Shopping Center contract with Jensen [Assignee] b. Arboretum to Menlo Park bridge - Stanford West Apartments contract with Jensen [Stanford] Vineyard Lane a. Shopping Center contract with Jensen (Stanford Barn maintains their own parking lot and landscaping) [Assig-nee, except Barn] E! Camino Real from Quarry to Sand Hill Road (west side and median) a. Shopping Center contract with Jensen [Assig-nee] for Stanford Traffic Si,o-na! Maintenance (SHR Maintenance Agreement, Section 4) Stanford shall reimburse the City of Palo Alto for one-quarter of the annual costs of maintenance of the traffic signals installed at the two intersections of Sand Hill and Stock Farm Roads (Smt!ford West Apa~nent responsibility) [Stanford] and of Quarry and Palo Roads (Shopping Center responsibili~.) [Assignee]. Reimbursement shall be determined in accordance with the armually published City of Palo Alto Electric Utilities Rate Schedule for Signal Maintenance, (currently identified as Schedule E-16). Payment shall be made in July of each year for the previous fiscal year. 43361~36054v7 Ext~bit C- 1 Note: All tree maintenance is subject to the ~tidelines found in the Sand Hill Road Corridor Roadways: Tree Maintenance Manual by Raymond Morneau, dated Spring, 2003. 43361k36054v7 ExNbit C-2