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allocated as follows: (i) to Landlord the award for its fee interest in the Premises including, <br />without limitation, its interest as Landlord under this Lease and its right to receive payment <br />in full of all amounts due under Tenant's Note regardless of whether this Lease terminates, <br />in whole or in part, and then, (ii) to Tenant for its leasehold estate immediately prior to such <br />taking. <br />B. Tenant shall be entitled to recover any and all compensation payable for loss <br />of business goodwill resulting from a Total or Partial Taking. Landlord and Tenant shall <br />each be entitled to receive compensation for relocation expenses as determined by their <br />respective relocation claims. <br />Section 12.5 Reduction of Annual Rent on Partial Taking <br />In the event of a Partial Taking, the Base Rent payable by Tenant shall be adjusted <br />from and after the date of the Taking. Such Base Rent adjustment caused by the Partial <br />Taking shall be made by reducing the Base Rent payable by Tenant based on the ratio <br />between the fair rental value of the leasehold estate prior to the Partial Taking and the fair <br />rental value of the leasehold estate remaining immediately thereafter, valued for the use being <br />made of the leasehold estate by Tenant immediately prior to such Partial Taking and taking <br />into consideration the effect of such Partial Taking on the income generated from the <br />Premises. Tenant and Landlord shall negotiate in good faith with respect to such Base Rent <br />adjustment. In the event Tenant and Landlord cannot agree on the appropriate adjustment to <br />be made to Base Rent, either party may compel the resolution of the dispute by arbitration <br />LEASE BETWEEN CITY OF SAN LEANDRO <br />AND SAN FRANCISCO BAY CONFERENCE RESORT PAGE 50 <br />2574001\313983.8 <br />