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Form51.16 (Rev. 10/14) <br />Page 27 of 35 <br />(a)When required by Section 1 of this Lease, Lessee shall provide a surety bond or other <br />security device acceptable to Lessor, for the specified amount, and naming the City of <br />San Leandro as the assured, to guarantee to Lessor the faithful observance and <br />performance by Lessee of all of the terms, covenants, and conditions of this Lease. <br />(b)Lessor may require an increase in the amount of the surety bond or other security device <br />to cover any additionally authorized Improvements, any modification of consideration, or to <br />provide for inflation or other increased need for security. The surety bond or other security <br />device may be increased on each fifth anniversary of the beginning date of this Lease. <br />Should Lessor fail to exercise such right effective on any fifth anniversary, it may do so <br />effective on any one (1) of the next four (4) anniversaries following such fifth anniversary <br />without prejudice to its right to effect such modification on the next or any succeeding fifth <br />anniversary. No such modification shall become effective unless Lessee is given at least <br />thirty (30) days’ notice prior to the effective date of the increase. <br />(c)The surety bond or other security device shall be maintained in full force and effect at <br />all times during the Lease term and subsequently until Lessor has either accepted all of the <br />Lease Premises as improved or restored by Lessee as provided elsewhere in this Lease. <br />Lessee must first seek approval of Lessor before changing the type of security device used, <br />or the bond holder. <br />11.ASSIGNMENT, ENCUMBRANCING, OR SUBLETTING <br />(a)Lessee shall not either voluntarily or by operation of law, assign, transfer, mortgage, <br />pledge, hypothecate or encumber this Lease and shall not sublet the Lease Premises, in <br />whole or in part, or allow any person other than the Lessee's employees, agents, servants <br />and invitees to occupy or use all or any portion of the Lease Premises without the prior <br />written consent of Lessor, which consent shall not be unreasonably withheld. <br />(1)Notice to Lessor of Successor Trustee(s): In the event this Lease is held in trust, and the <br />Lessee is a trustee thereof, the substitution or succession of a new trustee shall not be an <br />assignment or transfer for the purposes of this Paragraph. Lessee (and by operation of <br />law, any successor trustee) agrees to provide prompt notice to Lessor of any succession <br />or substitution of trustee in accordance with Paragraph 16(c) of General Provisions, no <br />later than sixty (60) days after the named trustee as appears on the face of this Lease <br />becomes unable or ceases to serve as trustee for any reason. <br />(b)The following shall be deemed to be an assignment or transfer within the meaning of <br />this Lease: <br />(1)If Lessee is a business entity, any dissolution, merger, consolidation or other <br />reorganization of Lessee, or the sale or other transfer of substantially all the assets of <br />DocuSign Envelope ID: 8D8CF2E2-DF6D-4A11-B610-2B1544DD7C30